Update: Sprint and T-Mobile have prevailed in court over the lawsuit brought by multiple attorneys general. The last hurdle before the merger can be finalized will be receiving the blessing from California’s utility board.
Sprint stock is up more than 70% and T-Mobile stock is up more than 11% on the news.
When the US airline industry shrank to 3 major network carriers they started copying each other’s devaluations and price hikes at a dizzying speed.
Consumers will likely wind up paying a lot more for 5G service with just 3 national carriers.
Originally posted on 7/26/19:
In return Sprint and T-Mobile will sell some wireless spectrum to Dish. But it will be nearly impossible for a small startup to succeed in a market with 3 massive competitors.
There are some loose ends and lawsuits to tie up, but with FCC and DOJ support the merger will go through.
Sprint and T-Mobile have kept AT&T and Verizon honest with their more affordable pricing and unlimited data plans. As a combined company that is nearly the same size as AT&T and Verizon there will be less need to compete on price. Upcoming 5G pricing will certainly be higher with less competition in the market.
We’ve seen how poorly consumers have fared in the face of massive hotel and airline mergers. Expect the same to come to the wireless industry.