California PUC should approve merger of AT&T and T-Mobile

[Commentary] California boasts most of the world's foremost technology companies and is a leader in consumer adoption of wireless services. As such, it has a profound interest in the continued health and rapid growth of the mobile ecosystem -- perhaps the one bright spot in the national economy. As the California Public Utilities Commission (CPUC) begins its investigation of AT&T's proposed acquisition of T-Mobile, the commissioners should review the Federal Communications Commission's just-released annual report on wireless competition.

The 300-page report offers a mountain of carefully compiled data on the mobile industry. Nearly all of it points to the conclusion that the merger would benefit California consumers and companies. Indeed, a fair reading of the report's key findings suggests the deal is essential to keep the mobile revolution fully charged. The proposed merger would alleviate many government-created problems. AT&T has committed to combine T-Mobile's spectrum holdings with its own to build a nationwide 4G LTE network to compete with Verizon's. (In California, 98 percent of the population will have access to the new LTE network.) T-Mobile's infrastructure, at the same time, would be integrated, alleviating constraints for both companies' current 3G customers. In the end, the FCC couldn't reach a definitive conclusion on the state of mobile competition. Perhaps that's because the nature of mobile services and the sources of competition are expanding and changing too quickly to really say who has leverage over whom. But it is clear that consumers are the real change agents here. That's a sign of a healthy and vital ecosystem. The CPUC should emulate the FCC's modesty and proceed quickly with its approval of the merger. Given the challenges providers already face -- many of them the unintended consequences of slow regulatory change -- the last thing Californians needs is more interference.

[Downes and Manne are adjunct fellows with TechFreedom]