More Commenters Say T-Mobile/Sprint Good for Competition

T-Mobile's buying Sprint faced numerous oppositions last month (see 1808280038) but this week got considerable love. Replies were due Monday to oppositions and many were posted Tuesday (see 1809170025). Many of the filings in FCC docket 18-197 questioned whether Sprint would survive without T-Mobile. T-Mobile and Sprint said they would be stronger together. Both have “standalone plans to deploy 5G networks, [but] the New T-Mobile network will be far superior and will create expanded capacity and lower costs so that American consumers will pay less and get more,” the carriers said. “Notably,” none of the oppositions disputes this point, they said. “Opponents insist either that the merger is unnecessary to build such a nationwide 5G network or that the standalone companies have alternatives to merging. They further hypothesize that the transaction will result in harmful effects on specific segments of the wireless market, rural areas, and company employment.” A recurring criticism is the deal would reduce service or raise process for prepaid plans “attractive to cost-conscious and low-income customers,” the deal partners said. “These concerns, like those raised on T-Mobile acquired MetroPCS, are unfounded. Following this merger, all MetroPCS, Boost Mobile, and Virgin Mobile USA customers with compatible handsets will benefit from the increased capacity and improved service quality that the New T-Mobile nationwide network will provide.” The transaction "comes at a precarious time for Sprint, which has been struggling for years as the nation’s fourth-largest wireless carrier,” the Competitive Enterprise Institute commented. “As the most highly leveraged S&P 500 company, with $32 billion of net debt, Sprint faces an uncertain future as a nationwide wireless carrier capable of competing with larger rivals.” The combined company “will be in a far better position to deploy wireless services to all Americans than would either company alone,” TechFreedom said. The group said many opponents “understate” how competitive the U.S. wireless market is. “In perhaps no other industry are the economies of scale larger than in broadband, and wireless broadband in particular,” TechFreedom said. The National Emergency Number Association said it rarely files on transactions but sees the deal as potentially benefiting emergency calling. T-Mobile is a leader in efforts to improve 911 calling, doing most work in-house, NENA said. “Such work, if carried over to the combined companies, will benefit T-Mobile customers when dialing 9-1-1 from their mobile devices."