from the bipartisanship-ahoy deptFri, Aug 9th 2019 12:18pm —
Despite obvious red flags regarding reduced competition and massive layoffs, both the FCC and DOJ have rushed to support T-Mobile’s $26 billion merger with Sprint. We’ve noted that the math (and history) are very clear on this front: the reduction of major telecom competitors uniformly results in much higher consumer prices as the incentive to compete in direct price competition is hugely reduced. It’s a major reason why you haven’t seen AT&T and Verizon (both lobbying juggernauts) criticizing the merger. History’s also clear: such mergers inevitably result in huge layoffs as redundancies are eliminated.
And while the FCC and DOJ (both now run by former telecom executives, it bears repeating) are tripping over themselves to sign off on the merger, a growing coalition of states has other plans. 10 states have sued to block the deal, quite correctly noting that mindless M&As are one of the biggest reasons we all hate broadband providers like AT&T and Comcast so much. Such deals help just two class of folks: investors and executives. Everybody else pays a steep price.
While the DOJ had approached numerous states in the hopes it could convince them to drop the lawsuit, that’s not going all that well. Republican Texas AG Ken Paxton has now done the compl
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