Ownership

Sprint’s plan to merge with rival T-Mobile in a $26 billion deal has triggered memories of dead phones and spotty service for some longtime Sprint customers, but the companies say such pitfalls are in the past. The customers are recalling the havoc of Sprint’s 2005 merger with Nextel Communications, much of it driven by the companies’ differing technologies. It took nearly eight years and billions of dollars to wind down Nextel’s so-called iDEN system—known for its chirpy push-to-talk cellphones—before all customers were taking calls on Sprint’s network.

If the government approves Sprint and T-Mobile’s bid to merge, customers of lower cost pre-paid plans — say from Boost and MetroPCS — could face changes. Both Sprint and T-Mobile also sell prepaid services at lower costs and under different brand names: Sprint has Boost and Virgin Mobile USA, while T-Mobile offers MetroPCS. The two also wholesale their networks to such third-party resellers as Consumer Cellular, Republic Wireless and Ting; AT&T and in particular, Verizon, are less open to the resellers.

[Commentary] AT&T's hiring of Michael Cohen in January 2017 to advise the company on an $85 billion acquisition of Time Warner looked like a smart strategy. In retrospect, AT&T's contract with Cohen appears to have been a complete failure. In November 2017, 10 months after AT&T retained Cohen, the Justice Department sued to block the company's purchase of Time Warner, citing antitrust concerns. Whatever efforts Cohen made to grease the skids did not work. The only visible evidence of President Trump taking a friendlier posture toward AT&T during the period when the company p

Randall L. Stephenson, AT&T’s chief executive, said in a staffwide memo  that the company had made a “big mistake” by hiring President Trump’s personal lawyer, Michael Cohen.

Potential deals between 21st Century Fox and Walt Disney (or Comcast), Viamcom and CBS, and AT&T and Time Warner have producers wondering just who the TV programming honchos will be. New ownership or management could lead to changes in programming strategy, determining which shows get renewed or canceled, where they fall on the schedule, and what kind of resources and marketing budget they get. The uncertainty adds to the other challenges facing the industry including competition for talent and viewers from deep-pocketed streaming services.

Klout, the service which measured online influence and assigned people a zero-to-100 score based on their social media followings, will shut down on May 25. Everyone’s Klout scores will go away, and with them, any remaining chance that businesses will treat us better or worse based on those scores. But the data Klout gathered from people presumably lives on. Lithium Technologies, the social-media marketing company that bought Klout in 2014, implied in its announcement that it has integrated Klout’s software and data into its own products. 

[Commentary] The proposition here is simple: This T-Mobile/Sprint deal will shrink the market for nationwide mobile wireless service from four players to three, giving consumers fewer choices and increasing the likelihood that prices will be higher and service offerings will be less consumer-friendly. Decreased competition in a market that is already consolidated? This deal should be an easy one for the government to reject. Companies seeking to merge typically promise the sun, moon, and the stars to regulators in order to obtain approval, and T-Mobile and Sprint are no different.

21st Century Fox signed a definitive agreement with Sinclair Broadcast Group and Tribune Media to acquire seven stations for approximately $910 million. The move is designed to speed federal approval of the $4.6 billion Sinclair-Tribune merger and follows news of spinoffs of 23 other stations from that deal. The transaction will grow Fox Television Stations' coverage to nearly half of all US households, and its market presence to 19 of the top 20 DMAs, including the addition of key markets that align with Fox's sports rights.

[Commentary] Is our government bound by the rule of law or the rule of President Trump? The Department of Justice's Antitrust Division must consider this question. Here's why. There is a two-part, simple legal standard for deciding whether the proposed combination of Sprint and T-Mobile should be allowed. Would it harm competition in such a way that consumers would suffer?

T-Mobile’s John Legere and Sprint’s Marcelo Claure met with Federal Communications Commission Chairman Ajit Pai to sell their $26.5 billion deal. Legere and Claure also met with FCC Commissioner Brendan Carr.