If You Own a Cell Phone, You Should Worry About the T-Mobile-Sprint Deal

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https://www.nytimes.com/2019/07/26/opinion/t-mobile-sprint-merger-antitrust.html

If You Own a Cell Phone, You Should Worry About the T-Mobile-Sprint Deal
In allowing the merger, the Justice Department is prioritizing corporate profits over the public interest.
By The Editorial Board
July 26, 2019

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John Legere, T-Mobile’s high-voltage chief executive, who became a fixture at President Trump’s Washington hotel while seeking approval for the deal, celebrated what he called “truly monumental news.” He has every reason to be excited, as he is likely to become more wealthy as a result. Mobile phone customers, though, have reason to mourn.

T-Mobile and Sprint have competed fiercely with each other, and with their larger rivals, AT&T and Verizon. If it has been an unpleasant experience for the companies, their customers have benefited. Since 2009, the average cost of mobile service has fallen by roughly 28 percent, according to the Labor Department. The companies also have sought to one-up each other with new products, more flexible contracts and better service. The market worked.

Federal regulators have come to evaluate mergers solely on the basis of whether consumers will benefit. This deal does not meet the test. It should have been obvious to regulators that T-Mobile’s promise not to raise prices for three years does not bode well for the fourth year.

A group of state attorneys general, led by Letitia James of New York and Xavier Becerra of California, has sued to block the merger, arguing that low-income consumers who buy prepaid wireless plans are particularly likely to suffer from higher prices. T-Mobile’s Metro PCS brand and Sprint’s Boost Mobile brand are major competitors in that market.