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US government approves T-Mobile/Sprint merger

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41–50 of 56 posts

Re: US government approves T-Mobile/Sprint merger

#41

US Antitrust law is among its most archaic, even though they are relatively young. Even the term Trust speaks to an a term that is no longer in common parlance. As there is discussion about 'breaking up' Facebook and others, the murkiness of the law is painfully clear. They should be referred to as competition laws, and they should be plainly understood and work at preventing and penalizing anti-competitive behavior.…

And such a law and the agency enforcing it need to be a lot more pro-active. By the time governments decide they need to "break-up a company", the lion's share of the damage has long been done against both small players (or potential entrants that never stood a chance) as well as consumers.

This is why although I'm a bit supporter of GDPR and other such regulations, I think there is some truth in the idea that they also "lock-in" the larger players, because of 2 primary reasons:

1) the fine/punishment is never significant enough to the point that all of the ill-gained wealth is entirely wiped out. However, maybe it can't/shouldn't be fully wiped out anyway, because then we enter into the realm of applying laws retroactively a bit, and that brings all sorts of other dangers with it.

2) they block the newer entrants from using the same unethical tactics to effectively compete. However, I don't think this is a good excuse against not enabling such laws. Getting stuck with a couple of monopolies that can still be further regulated down the road isn't as bad as everyone stealing people's data and abusing it for personal gain, etc. Like we saw recently that US carriers have been selling people's location data to bounty hunters and all sorts of other shady groups -- all in the name of some extra profit. No, I definitely think a strong law against such abuses would be much better than it not existing.

But in an ideal world, the governments would've prevented the unethical behavior way before it starts giving companies billions of dollars in profit every single quarter. And then both the rampant abuses for a decade+ and the monopolies would be prevented from the start.

I've been kind of developing my own "rule of thumb" for noticing which company is a monopoly/makes too much money in some unethical way. When a company reaches this step you start seeing it "invest" into all sorts of crazy and unrelated ideas and markets that have nothing to do with its core business.

When a company has "too much money it doesn't know what to do with" and prefers spending it on completely unrelated markets instead of improving its core products/offering better value (huge red flag if it doesn't here), then you know that company is doing something that makes it way too easy for it to print money. Maybe it's lobbying Congress for locking out competitors, maybe it's it bribing government officials to gain contracts, maybe it's them coercing customers into exclusive deals, and so on. When it gets too easy to make a lot of money and the competition seems to have no way of catching up, it's not just because the product is that good.

Re: US government approves T-Mobile/Sprint merger

#42
post #4

We are currently in "merger insanity". I'm wondering how many companies will be left before this ends?

"Welcome to AOL Time Warner Taco Bell U. S. Government long distance. Please state the name of the individual you'd like to call"

-Idiocracy (2006)

https://getyarn.io/yarn-clip/ad893407-a612-4158-96da-f75b143...

Re: US government approves T-Mobile/Sprint merger

#44
post #5

To me this makes a lot more sense than the T-Mobile At&t merger that failed to go through. Sprint is a pretty dead brand and provider. They were actually giving away a year of free service without any obligation (you only had to pay $2 tax/fee) and people still would not switch to it. T-Mobile has pushed the other carriers to bring back unlimited plans and they've separated the phone cost from the plan itself (allowi…

>To me this makes a lot more sense than the T-Mobile At&t merger that failed to go through. I'm sure that's true. But public interest is not why the T-Mobile At&T merger was derailed.

Don't leave us hanging, man! With what nefarious interest did the public interest fortunately coincide?

Re: US government approves T-Mobile/Sprint merger

#45
post #14
post #5

To me this makes a lot more sense than the T-Mobile At&t merger that failed to go through. Sprint is a pretty dead brand and provider. They were actually giving away a year of free service without any obligation (you only had to pay $2 tax/fee) and people still would not switch to it. T-Mobile has pushed the other carriers to bring back unlimited plans and they've separated the phone cost from the plan itself (allowi…

Sprint has a pretty solid network in most markets, but they also have a metric crapton of debt. What it comes down to, is there isnt enough spectrum to have three fully competitive carriers. The merger of T-Mo and Sprint will give them a huge leverage point on spectrum. T-Mo bring 600, AWS bands, as well as 1900 PCS blocks, Sprint brings 2.6, 900 and 1900 PCS blocks.

I did the cellphone module for the EO PDAs back when there was just the "A" and the "B" ('Bell') carriers. I recall reading academic papers at the time pointing out that, technically, it would be most efficient to have a single swath of bandwidth assigned to a single company; instead, half went to 'A' and half went to 'B' -- guaranteeing a suboptimal technical solution. It's interesting to me that, at the time, they were able to get away with only 2 carriers per region.

Re: US government approves T-Mobile/Sprint merger

#46
post #18

Matt Stoller has some harsh things to say about this, saying this is only happening because of Trump's friendship with Masayoshi Son: https://mattstoller.substack.com/p/trump-antitrust-going-aft...

The corruption angle is interesting, but it's got to be better supported than this. Just flatly stating "the goal of the merger is to raise prices" is not enough. Are there mergers not motivated by that, at least in part? If either ATT or VZN disappeared in the near future, then this merger could be part of the chain of events leading to raised prices. Back in the real world, prices might go up but not because of anything the merged company has done. It's still number three. This merger is good for consumers, on balance. Not just for Sprint customers but also for the customers of the hundreds of MVNOs dependent on Sprint's ongoing operation.

Re: US government approves T-Mobile/Sprint merger

#47

US Antitrust law is among its most archaic, even though they are relatively young. Even the term Trust speaks to an a term that is no longer in common parlance. As there is discussion about 'breaking up' Facebook and others, the murkiness of the law is painfully clear. They should be referred to as competition laws, and they should be plainly understood and work at preventing and penalizing anti-competitive behavior.…

I think the laws are intentionally unclear for political purposes. They want a lot of subjectivity in enforcement. A lot of law is written this way.

Re: US government approves T-Mobile/Sprint merger

#48

Earlier quoted context omitted.

>To me this makes a lot more sense than the T-Mobile At&t merger that failed to go through. I'm sure that's true. But public interest is not why the T-Mobile At&T merger was derailed.

Don't leave us hanging, man! With what nefarious interest did the public interest fortunately coincide?

https://www.businessinsider.com/jared-kushner-cnn-staff-2017...

https://www.usatoday.com/story/money/business/2017/02/17/tru...

https://www.vox.com/2017/11/11/16637186/kushner-cnn-time-war...

(discussion starts with paragraph starting with "Cohn, a former president of Goldman Sachs") at https://www.newyorker.com/magazine/2019/03/11/the-making-of-...

Not that I shed any tears for the failed merger (imo AT&T should be broken up further). But the corporate incentives to avoid merger blockage are radically different when anti-trust is used this way.

Re: US government approves T-Mobile/Sprint merger

#50

Earlier quoted context omitted.

Don't leave us hanging, man! With what nefarious interest did the public interest fortunately coincide?

https://www.businessinsider.com/jared-kushner-cnn-staff-2017... https://www.usatoday.com/story/money/business/2017/02/17/tru... https://www.vox.com/2017/11/11/16637186/kushner-cnn-time-war... (discussion starts with paragraph starting with "Cohn, a former president of Goldman Sachs") at https://www.newyorker.com/magazine/2019/03/11/the-making-of-... Not that I shed any tears for the failed merger (imo AT&T should be…

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