Quick Hits on AT&T/T-Mobile

Interesting tidbits about the proposed purchase of T-Mobile by AT&T:

1. When Cingular bought AT&T Wireless, they were required to divest spectrum as a condition of having the deal approved. T-Mobile bought a lot of it. So AT&T will have to re-divest spectrum it had already divested -- or it will get to keep spectrum the Federal Communications Commission already found would give it too much market power.
2. House Republicans have gone on the record calling for strong antitrust oversight of the telecommunications market, as an approach they prefer to regulation. Will they continue to press for enforcement of the antitrust laws when it comes to this merger? Mergers like this one “potentially raise significant competitive concerns and often warrant scrutiny.” This is magnified when you consider how difficult it is to enter the wireless market, since you need to wait for the FCC to free up spectrum. There’s little chance that some wireless upstart will come out of nowhere and steal AT&T’s lunch money.
3. Pointing to regional carriers to prove the wireless market is competitive is laughable. Companies like Cellular South serve their customers very well. But T-Mobile by itself is bigger than every other small or regional carrier combined.