Taking A Look At The Likely Consumer Advocate, Regulatory Impact Of T-Mobile, MetroPCS

The opposition to AT&T’s proposed takeover was fiercely led by a number of consumer advocate groups including Public Knowledge, which has a decidedly different, if not indifferent tone for T-Mobile, MetroPCS.

“We hate to see companies like MetroPCS shut down, but in this situation, we can see how this merger can add to the overall competitiveness of the field,” said Bartees Cox, communications associate at Public Knowledge. “With AT&T and Verizon getting so strong, this would be a good way to compete against them [and] we’re hoping it will eventually lower prices for consumers.”

Another lead group was Free Press, which also has taken on an indifferent tone for the deal says Matt Wood, policy director at Free Press:

“We need stronger competitors to push back against the AT&T-Verizon juggernaut, ones that will force these carriers to compete on price and service quality. But consolidation at the bottom between a regional prepaid carrier and the last-place national carrier is not going to fix all of the problems in our wireless market,” he said in a statement.

Even the Rural Telecommunications Group composed of rural wireless carriers that tend to freak out over big-carrier mergers took a positive tone:

“T-Mobile and MetroPCS will be able to provide a competitive, and hopefully long-lasting, alternative to the Twin Bells of AT&T and Verizon,” RTG general counsel Carri Bennet said in a statement. “Having a healthy, vibrant fourth LTE competitor is critical to preserving competition in the mobile wireless market. A post-merger T-Mobile truly committed to being a value-leader benefits all consumers.”

Ok, so we’ve determined that most of the very loud consumer groups that vehemently opposed a T-Mobile, AT&T deal won’t bark over the proposed, T-Mobile/MetroPCS deal.

That brings us to regulators, the group of agencies that will have the ultimate decision in the merger moving forward. According to the Wall Street Journal, sources close to the FCC expects a speedy confirmation to the deal because of the involvement of a struggling national carrier and a regional player.

Blair Levin, a former FCC Chief of Staff says that government officials would likely be pleased with this deal as it strengths T-Mobile:

“If I were sitting in the [Department of Justice] right now I would say this completely justifies what we did,” Mr. Levin said.

Now, we wait.

PCMag, Wall Street Journal

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  • It’s Stetson’s fault!!!

    It’s all Stetson’s fault!!!

  • mingkee

    I am kinda positive with this combination. It is more mutual than ATT wanted to take over “everything”.

  • Deadeye37

    I approve of this merger. So let it be written, so let it be done!

    • nycplayboy78

      AMEN!!!!

  • Eddie

    I hope this merger get approve ,

  • Josue

    this should get approved

  • GwapoAko

    Approved!!!

  • nycplayboy78

    YAY!!!!!

  • http://twitter.com/SParKlngCyaNide SparklingCyanide

    It’s practically a done deal, and I quite like that. – )

  • Diego Vazquez

    As long as Deutsche Telekom AG doesn’t back out of the US completely later on. I’m for it.

    • wat

      THIS! I prefer DT to control T-mobile cuz they did a good job at the spectrum swap with Leap situation. This certainly seems like they’re re-committing to the US!!

    • ogopogo

      Actually, it would be of benefit if they eventually did back out. They have made it clear time and time again, that they want out. You do NOT want an executive management system with that attitude running the company. Based on what we are hearing, the deal is being structured such that DT will be able to bow out of the US market.

      • UMA_Fan

        People keep saying this, but where exactly do they keep talking about wanting out of the US? Everything recent from DT executives is nothing but support for their US branch.

    • Josue

      Douche Telekom has no other option but to stay

  • eanfoso

    Lol watch AT&T make a juicy bid to metro pcs now!! Or Verizon AND watch that get approved ;)

    • bleeew

      Verizon will disapprove, because it “blocks” competition, aka money they can make by ripping people off.

  • Frank Alvarez

    People leave AT&T for T-Mobile and Metro PCS. Most had bad experiences with AT&T and don’t want to be forced to be their customer again. I doubt many have left t-mobile for Metro PCS or vice versa.

    • Dakota

      I’ve seen more leave for at&t and the iPhone.

  • umad

    Hurry up! The merger deal needs to be approved asap!!! This will shut up butthurt crippled sprint!

    • Dakota

      Why does sprint have more customers than T-Mobile when their network has such a bad reputation..I don’t get it

      • umad

        I believe that they don’t know that T-mobile offering a true unlimited plan. Well, tell them about it, so T-mobile will thank you for getting more consumers. :D

  • taron19119@gmail.com

    Im going to do what I did whe at&t try to buy T-Mobile and write a letter but this time it is going to be y this needs to happen

    • bleeew

      Include the parts that people on Verizon and ATT are bending over to them,

  • TMoFan

    I support this whether or not DT sells their part later on. Having a bulked up TMo is much better than having it vanish.

  • Hesster

    The size of the merging partners is the big difference IMHO. You want at least a three-way competiton so companies don’t get too complacent. An AT&T/T-Mobile merger would have concentrated too much market share in the top two companies, leaving two very big companies able to throw lots of weight around and one much smaller company in a vulnerable position. It would also have concentrated all the GSM coverage in the US under one company, leaving people with GSM handsets unable to go elsewhere. If the failed merger had been between Sprint and T-Mobile, it would have been more likely to pass.

    A MetroPCS/T-Mobile merger makes more sense since it strengthens the competiton at the national level. It leaves smaller carriers a choice of companies on the top tier to play off against each other when they need to make deals for roaming and bandwidth swaps.

    I was against the last merger, but I don’t have any issues with this one, and I don’t think the feds will either.

  • Robert Scaramuzzino

    One part crap + one part shit = one big steamy pile of shit!!!

  • e8e

    Its funny because I remember when metro pcs was poppin all over the place in the city of brotherly love a couple years back. Tmobile could have been more competitive back then which could have blocked metro from even being successful and probably kept their millions of customers they lost since then. Now they are just buying their customers back. Companies need to think of the long term effects smaller companies can have on them. Treat it like a war room environment with more competition.

    • Dakota

      Metro even had stronger ad campaigns than tmobile w..just wish they’d get a new chief marketer and a new PR firm..does Carly get new customers; just don’t see it

    • eanfoso

      Hence why AT&T has bought a lot of regional carriers then, here along south east Texas they bought 4!

  • Dakota

    Hard to imagine Verizon or at&t lowering prices considering they keep raising them and just screwed lots of folks with share plans. Viz 2gb plan was increased by $30 month..they lost my biz with that move alone

  • http://www.volkswagen.de/ Quailallstar

    This merger WILL be approved.

  • Eric

    Approved! I want my T-Mobile iPhone!!!!

  • http://twitter.com/YepiimGS_Blanco Jay J. Blanco

    Aproved ! And all Metropcs customers gets a free tmobile phone of their choice !