Public Knowledge Staff Attorney John Bergmayer expressed some enthusiasm for...
Public Knowledge Staff Attorney John Bergmayer expressed some enthusiasm for T-Mobile’s proposed buy of MetroPCS on PK’s blog. “On balance, this transaction is likely to be good for value-conscious subscribers, including prepaid customers,” Bergmayer wrote (http://xrl.us/bntu7r). “As the domestic…
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wireless market has approached saturation, even AT&T and Verizon have found it worthwhile to go after prepaid users. Since T-Mobile still positions itself as a ‘value’ carrier, it seems likely that it'll continue to offer the same kinds of plans it offers today. Moreover, a stronger T-Mobile might actually put some pricing pressure on AT&T and Verizon, which would be a big win for consumers overall.” Bergmayer said his enthusiasm for the merger shows the state of competition in the U.S. wireless industry. “It would be better if wireless competition was not in such a sad state -- for example, it would be better if spectrum holdings were not so lopsidedly in favor of the dominant providers,” he said. “This transaction will not change the fundamental problems with the wireless industry, which needs much more competition than even a bulked-up T-Mobile or Sprint can provide. But given the realities of wireless, on balance a stronger T-Mobile would be better for competition, and thus for consumers."