Third try for T-Mobile / Sprint merger - WFMJ.com News weather sports for Youngstown-Warren Ohio

Third try for T-Mobile / Sprint merger

Posted: Updated:
YOUNGSTOWN, Ohio -

It's the third time around for T-Mobile and Sprint as the third and fourth largest wireless carriers announce a new merger proposal. It's a deal that could change the landscape of the wireless phone industry. 

If approved, the deal would result in a combined company valued at $146 billion with 127 million subscribers, rivaling competitive giants  AT&T and Verizon.  

T-Mobile's CEO says it will be able to deliver more for consumers and businesses at lower prices due in part to eliminating duplicate spending. 

Others say there could be a negative side to it as the two companies might discontinue discounts and special promotions to lure customers.  T-Mobile was the first to end the long-term contract requirement and offer unlimited data plans.   

The chair of the Department of Economics at Youngstown State University says cost savings doesn't always trickle down. 

"So even if the merged firms have lower costs, there's a question as to whether those costs would ultimately get passed on to the consumer if the firms don't have to compete as aggressively against each other to maintain their profits," said Dr. Tod Porter

The deal is expected to once again face significant hurdles as antitrust regulators have in the past balked at reducing the number of major carriers from four to just three.

"This is is an industry that's pretty highly concentrated already so they're going to be very skeptical about allowing additional concentration to occur," Porter said.
 
The deal will be subject to scrutiny by several government agencies including the Justice Department and the Federal Communications Commission. 
 

Powered by Frankly
All content © Copyright 2000 - 2018 WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms