Worried about Sprint and T-Mobile merging? Sources tell the New York Post you shouldn’t be. According to them, the deal is “dead”. The FCC, who are outspoken about wanting four major US carriers, are said to be dead set against the merger.
These sources hint the FCC’s dismay with the deal may circulate around the initial story itself. The Wall Street Journal broke the merger news originally, which FCC Chairman Tom Wheeler believes was planted by Sprint. Sprint was set to meet with the FCC that morning about the proposed merger, and Wheeler believes they planted the story ahead of the meeting, likely to curry public favor.
Even more telling is that Sprint’s CEO and CFO left respective meetings separately before taking questions on the proposed merger. If Sprint believed a merger was eminent, likely, or even possible — their head honchos would likely have fielded questions about the issue.
If the deal doesn’t go through, it keeps Verizon and AT&T in a powerful position. The smaller carriers argue that AT&T and Verizon have the ability to purchase more spectrum, increasing the divide. The FCC has new rules in place to even the playing field a bit, but they are tenuous at best. Smaller carriers have spectrum set aside for them, but it’s a small amount.
A Sprint/T-Mobile merger would assist with their purchase power, but likely leave a sour taste in the mouths of consumers. We’ll wait to see how this develops, but for now — the merger seems DOA.
We’re curious on your take. Were/are you happy about a merger, or do you prefer your carriers separate? Given the risks/rewards associated, what’s your take on it all? Sound off in our comments section below!
Source: The New York Post