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What do DOJ employees have to do with a Judgement in a Federal Court?
This is about having 4 companies that are viable, with the top 3 being more equal. More importantly to me (and probably the DOJ & FEC) is the spectrum sale to the new company that has the first real possibility of bringing service to rural areas with no service.
Judge Marrero rejected the states’ argument that Sprint, without the deal, could continue competing. He also said a deal brokered by federal regulators to set up Dish Network Corp as a new cellular phone service provider would benefit consumers.
T-Mobile has redefined itself over the past decade as a maverick that has spurred the two largest players in its industry to make numerous pro-consumer changes,” the judge wrote, adding that a closed deal would allow it to continue “T-Mobile’s undeniably successful business strategy for the foreseeable future.”
He also acknowledged the effort the FCC and Justice Department put into crafting a fourth nationwide carrier run by Dish. The agreement requires Sprint to sell airwaves and about nine million customer accounts to Dish.
It’s like Mineral Rights (can’t drill without gathering all the Mineral Rights) or Airline owned Gates at Airports (can’t fly without the gates) — the spectrum for underserved (and unprofitable for everybody) will go to the satellite company that serves customers they already have for TV service.
I travel a lot to these areas with no cell service, have family that lives in these areas with no viable option of computer service. The big boys didn’t want to do it, part of this deal is a path to service.
This should be a positive development for the industry. Sprint has been suffering to debt. Even giving away free service, they couldn’t gain customers. Sprint has something that T-Mobile needs which is spectrum, and lots of it, T-Mobile has a growth problem. They’ve grown and exceeded expectations to the point where customers are suffering from congestion issues. Signal issues were a thing of the past for them and their coverage has gotten substantially better. With that being said, Verizon is suffering from limited capacity, while they exceed in coverage. AT&T doesn’t have the spectrum issues because of their rights to the Firstnet contract. Now Dish is going to enter the market and should shake things up in the coming years because they have been hoarding unused spectrum for years. To start they can piggy back off of T-Mobile for a few years as well. Sprint was doomed from bankruptcy or from being sold. Hopefully now we get 4 real players.
Thanks for the succinct summary. I think the states are trying to negotiate the absolute best deal they can going forward. As with many big mergers they tend to end up being anti-consumer but in the communication industry time does indeed march on.
When was the last time the USDOJ seriously enforced antitrust suits by rejecting a merger between 2 media companies and a merger between 2 telecom companies? That is what I would like to know but how would I Google that?
When was the last time the USDOJ seriously enforced antitrust suits by rejecting a merger between 2 media companies and a merger between 2 telecom companies? That is what I would like to know but how would I Google that?
Not that I can remember. They seem completely pro business to me.
When was the last time the USDOJ seriously enforced antitrust suits by rejecting a merger between 2 media companies and a merger between 2 telecom companies? That is what I would like to know but how would I Google that?
Comcast and AT&T
Dish and Direct
AT&T and T Mobile
AT&T and Time Warner
Comcast and Time Warner
Funny irony, actually enforcing antitrust would slow down the growth ever increasing wealth/income inequality without tax increases.
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