Saturday, November 4, 2017

Four is better than three

Sprint and T-Mobile announced today that they have decided to end recent merger talks and continue to go their separate ways in the U.S. wireless telecom market.  This is good news for consumers.  

According to research firm, Mosaik (and cited in the WSJ, 11/4/2017), two-thirds of U.S. counties would have lost a provider if the merger went through.  With one less competitor in the market, the three remaining firms would have benefited from an increase in market power – possibly resulting in higher prices and less innovation.

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