AT&T purchase of T-Mobile should be rejected

[Commentary] We think the AT&T|T-Mobile deal should not be approved, for several reasons.

One is customer service. As the ad implies, AT&T is not known for its good service. Paul Reynolds of Consumers Union reports that their surveys "found AT&T to be the clear worst wireless carrier in the country." AT&T is rolling out new technology, so its service will probably improve, but still this is a case of the acquiring company being the one with the most problems. Another reason is price. Wall Street sees the gobbling up of T-Mobile "as the elimination of a pesky low-priced rival," says Eric Savitz of Forbes. Customers need to have companies like that. Both of these reasons are part of a larger concern about market power. This transaction combines the No. 2 and No. 4 in the market, creating a new No. 1. That leaves Sprint Nextel at a weak No. 3. The obvious next step is the combination of Verizon and Sprint. At that point, the mobile-phone providers becomes a Pepsi-and-Coke market with two big choices.