CEI applauds the Department of Justice’s approval of the proposed merger between the nation’s third and fourth largest mobile telecommunications providers, T-Mobile US Inc and Sprint Corp, respectively. CEI experts explain how keeping government out of this dynamic industry will benefit consumers and likely speed 5G deployment.
Statement by Associate Director for Technology and Innovation, Jessica Melugin:
“With the government out of the way, consumers will get the wireless innovations they deserve and that the unfettered marketplace can deliver. The merged company would likely mean three, instead of two, 5G options for consumers in the future and a leg-up for U.S. standards to become the default in the new technology.
“Private industry has every incentive to give American consumers what they want: faster, better, cheaper wireless service. It’s a shame this approval had to come with government divestiture conditions that are likely arbitrary and unfairly penalizing.”
Statement by CEI Research Fellow, Patrick Hedger:
“Most mergers and acquisitions indicate a healthy and dynamic marketplace where new technologies and innovations incentivize business rivals to join forces to stay competitive. That’s why mergers improve product and service quality, which is infinitely more important than the quantity of competitors. In this case, the new technology is 5G and the new T-Mobile is better equipped to not-only build a strong and secure 5G network but put healthy pressure on their competitors to do the same.”