The State of New York Won’t Appeal T-Mobile Merger Verdict
New York Attorney General Letitia James said the state won’t obstruct the merge of T-mobile and Sprint. This legal decision removes barriers between the cellphone carriers and their long-planned combination.
“After a thorough analysis, New York has decided not to move forward with an appeal in this case,” Ms. James said in a statement released on Feb 16th. “Instead, we hope to work with all the parties to ensure that consumers get the best pricing and service possible, that networks are built out throughout our state, and that good-paying jobs are created here in New York.”
In the Obama era, T-Mobile and Sprint talked about mergers but these negotiations ended in failure, in order to avoid monopoly advantages and the formation of a bastion of industrial interests. For mergers of large telecommunications operators, the competent authority will usually evaluate them carefully. Such telecommunications mergers are most often opposed. For example, AT&T failed to acquire Time Warner. In 2011, AT&T tried to acquire T-Mobile, but it failed to get approval to do so. In 2014, T-Mobile tried to sell to Sprint, but in the end, it was also blocked, due to a threat from the Federal Communications Commission (FCC). In 2016, T-Mobile and Sprint started to negotiate again, but the two sides did not reach a consensus. With T-Mobile and Sprint now ranked as the No. 3 and No. 4 corporations in telecommunications, the merger would inevitably affect the overall telecommunications industry in the United States. The merger would attract great attention from US antitrust agencies, which have not ruled out examining it in more aspects.
However, T-Mobile and Sprint will have a set of persuasive legal arguments to convince the authorities. After the merger, New T-Mobile will have more network spectrum. In addition to the past 600 MHz and 700 MHz, Sprint's 800 MHz and an increase in speed will also be added. The speed of GHz is helpful to the development of 5G networks and access to business opportunities in the fixed-line broadband market. New T-Mobile promises to invest 30 billion U.S. dollars in building new networks and deploying new services in the next three years. It plans to increase the average national network speed by 15 times by 2024.
In addition, New T-Mobile emphasizes that its coverage network will help improve rural Internet access and reduce the digital gap between urban and rural areas. It is expected to open hundreds of new stores in rural communities, thereby creating more job opportunities, including network engineers, network installations employees, call center specialists, and new store staff, etc., by establishing in-state call centers to increase various customer needs.
On the other hand, gathering silver bullets to build a 5G network at a lower cost and scale will further promote competition in the telecommunications industry and reduce tariffs, ultimately increasing transmission speed and expanding services. At the same time, fortunately, prices will decline. After all, China has a positive attitude towards the development of 5G mobile networks, even ahead of the United States. Whether the merger can change this pattern and reverse the backward situation will be a topic of concern to the US government.
The U.S. telecommunications industry as a whole will continue to witness intense competition among the three leading corporations (Verizon, AT & T and New T-Mobile). New T-Mobile subscribers will exceed 100 million consumers, and the total number of subscribers can compete with those of Verizon and AT & T. After the merger, the United States will deploy its widest-ever coverage, and its highest-capacity mobile network.
What do you think is the impact of the merger of t-mobile and Sprint on the telecommunication industry in the United States? Is that good or bad?
What do you think is the impact of the merger of t-mobile and Sprint on the telecommunication industry in the United States? Is that good or bad?
1 comment:
I do not think the merger is bad only because they are the third and fourth most used telemarket companies. Since not many Americans use their services compared to Verizon and AT&T, there probably won't be that much of a difference in the competition with other counties. This is only unless prices go down, which they can, so consumers could want to switch providers, but this would only create more competition between the firms, which is needed for our market economy.
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