If approved by regulators, the newly expanded
The potential market shift could force
“”This move by
Such a trend probably would drive up mobile service rates and reduce the number of phones and tablet computers available to wireless subscribers, he said.
“”The U.S. wireless industry is one of the most fiercely competitive markets in the world and will remain so after this deal,””
But critics of the deal warned that cheaper options could dry up if there were just three or fewer players left in the market.
“”When you have two companies control almost the entire market, you’re almost back to reassembling the Ma Bell monopoly”” when the old
“”It is absolutely essential that both the Department of Justice and the FCC leave no stone unturned in determining what the impact of this combination is on the American people,”” Sen.
In looking at the proposal, federal antitrust and telecommunications regulators such as the Federal Communications Commission and the Justice Department are likely to weigh the benefits of market and technical efficiencies achieved by the merger against the potential loss of competition. Regulators are also likely to scrutinize the combined market share for both Internet broadband services and wireless telephone services.
Besides the potential for huge savings from closing overlapping retail stores and call centers,
Nearly one-third of U.S. cell phone users have the newer breed of Internet-connected smart phones such as Apple’s iPhone and Motorola’s Droid. Consumers on those phones have a greater appetite for video, music and Web surfing — data-intensive activities that are putting a strain on cellular networks.
The acquisition could be appealing for some T-Mobile customers, who may be able to buy the popular Apple iPhone.
T-Mobile, owned by German communications conglomerate
But the low-cost image probably won’t fit with
“”I think you’ll probably see that positioning fade,”” he said. “”The last thing they’ll want to do is say they have a superior network and then price it cheap.””