While I think the T-mobile/Sprint horizontal merger and resulting increase in market concentration has the outward signs of "no way regulators will approve it", there are other factors that continue to make me think that the DOJ just might approve it.
In addition to what I described in my earlier blog (June 25th), the DOJ may look favorable on the firms' verbal commitments to retain the pre-paid options (Boost, Virgin, and MetroPCS) that make mobile calling more affordable for lower income HHs and the [strong] argument that a combined T-Mobile/Sprint can create a viable competitor in a larger number of markets for in-home broadband using 5G wireless and Level3. The greater scale would give the new T-Mobile the leverage it would need to negotiate lower programming costs so that it could effectively compete in duopolistic markets controlled by the likes of Comcast and AT&T. Essentially, the decline in the number of mobile competitors may be tolerated by the DOJ, if there is an offsetting gain in the number of competitors in the broadband market. There is a lot of speculation and promises. Let's see what the DOJ believes and/or holds the firms to if the merger is approved in one form or another.
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