When Is Wireless Consolidation Good for Consumers?

[Commentary] On October 2, we first read confirmed reports that Deutsche Telekom was in talks with MetroPCS Wireless on a possible deal to combine T-Mobile USA with MetroPCS. MetroPCS sells flat-rate monthly plans and has 9.3 million subscribers, including about 700,000 customers on its LTE network. The MetroPCS network covers 102 million people in the U.S. MetroPCS's 3G network uses CDMA, a different technology from T-Mobile's GSM-based system. Deutsche Telekom, based in Germany, is the parent company of T-Mobile USA, the fourth-largest U.S. mobile operator. Federal regulators, Headlines readers well know, blocked AT&T’s attempt to acquire T-Mobile last year saying it was anti-competitive. A breakup deal gave T-Mobile $3 billion cash and spectrum licenses in 128 markets. This new deal puts T-Mobile on stabler ground, and could be seen as vindication for the regulators' decision that T-Mobile could compete on its own.