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Let them invest to compete, instead of merging. Merging will only make things worse.
by shmerl 7y ago
Let them invest to compete, instead of merging. Merging will only make things worse.
- Dwolb 7y agoCompete how? Competition with the market leader will improve if this merger results in a more formidable opponent.
- shmerl 7y agoThey should become more formidable without merging.
- notSupplied 7y agoT-Mobile moght, Sprint won’t. They are a distressed company and no amount “shoulds” will change their trajectory. The question is whether T-Mobile deserves to grab all of Sprints customers in a “migrate by default” scheme, or their gonna have to fight for those customers when Sprint inevitably goes down.
- ViViDboarder 7y agoExactly. Sprint is tanking. Who else should be able to acquire it?
- notSupplied 7y agoATT nor Verizon would be able to acquire Sprint the company. But if the company goes down without being acquired by T-Mobile, let's say their customers would migrate to the remaining 3 carriers proportionally existing market shares. This outcome would be pretty great for AT&T and Verizon and strictly increase the market concentration. Approve or not approve, regulators are sometimes forced into a position of "picking winners" :-( Another thing that needs thinking through is what happens to Sprint's spectrum if the company goes under. What kind of rules will be placed on that auction? Would ATT and Verizon be likely winners of such an auction?
- Spivak 7y agoIf either of them knew how to do that I think they would have by now. For real, if you can tell either of them how you'll be an overnight millionaire.
- cududa 7y agoHow are they going to invest? They make barely any money and are saddled with massive amounts of debt and no way to raise
- ViViDboarder 7y agoHow do you figure? If they merge, we get three main market leaders all competing head to head. If they don’t, Sprint tanks, and we still have three main market leaders, however two will remain significantly ahead of the third. Keeping in mind that the two that are ahead are now playing the monopoly game and buying into other industries (see AT&T and Time Warner or AT&T and DirecTV or Verizon and Yahoo, etc)
- shakyshakyshaky 7y agoBreak up Verizon and AT&T.
- dorchadas 7y agoWe then need to keep them broken up.