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C Spire Argues Against T-Mobile/Sprint

C Spire wants the FCC to reject T-Mobile buying Sprint, meeting FCC officials, said a Thursday filing in docket 18-197 not yet posted. “The post-merger structure of the wireless market will adversely affect competition. Three dominant carriers of roughly equal…

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size will have the ability and the incentive to coordinate prices in both the retail and wholesale markets, particularly because the wireless market is mature and the demand for wireless services is inelastic,” C Spire said. “T-Mobile has admitted that the primary goal of New T- Mobile will be to maximize its profits and shareholder value. Economic theory compels the conclusion that it can best accomplish this goal by engaging in parallel conduct as to retail and wholesale pricing rather than by competing aggressively by lowering its prices.” C Spire officials met with aides to the commissioners other than Chairman Ajit Pai, and with the staff team reviewing the transaction. T-Mobile and Sprint didn't comment.