T-Mobile purchase of MetroPCS is good for consumers, for now

[Commentary] Consumers would normally shake their heads in dismay at news of yet another market-shrinking telecom merger. But T-Mobile USA gobbling up rival MetroPCS is one of those rare examples of a corporate roll in the hay actually being in consumers' best interest — at least for a while.

Short term, a revitalized T-Mobile helps prevent the near-duopoly of Verizon and AT&T from owning the entire wireless market. "Given the power of AT&T and Verizon, it's understandable that T-Mobile has to get creative to compete," said John Bergmayer, senior staff attorney for the advocacy group Public Knowledge. "It's a tough call, but on balance I think that the industry will be better off with a stronger T-Mobile." Longer term, however, all this merger does is set the table for even more consolidation. The most likely scenario: A few years down the road, Sprint and T-Mobile will say they need to merge to compete with the two heavyweights. And a few years after that, Verizon or AT&T will make a play for whatever's left. "It's the way the market is structured," said Linda Sherry, a spokeswoman for Consumer Action. "People tend to go with the big names. If a company is a little smaller, it becomes a takeover target." The marriage of T-Mobile and MetroPCS won't exactly change the wireless landscape. But T-Mobile will be in a better position to serve as a lower-cost alternative to the other guys with its greater market share, particularly in light of the compatibility of its and MetroPCS' next-generation 4G networks.