Reactions to Sprint/T-Mobile Vote at the FCC

Sen. Amy Klobuchar (D-MN): “I have repeatedly raised serious antitrust concerns about the harmful effects of merging T-Mobile and Sprint, two of the four remaining nationwide wireless carriers. Overwhelming evidence shows that approving this merger will almost certainly hurt competition and consumers and lead to higher prices, worse service, and less innovation. I am hopeful that the lawsuit brought by over a dozen state attorneys general to block the merger will be successful.”

Benton Senior Fellow Gigi Sohn: "Today’s decision is the culmination of one of the most irregular and opaque processes in FCC history. The FCC majority prejudged the merits of this merger two monthsbefore the Justice Department found the combination of T-Mobile and Sprint to be anticompetitive and required the creation of a new fourth competitor to pass legal muster. Despite this radical change in the merger, Chairman Pai has refused to put the new arrangement out for public comment. The evidence is clear, and the Justice Department agreed, that the merger of T-Mobile and Sprint will raise prices and reduce competition to the detriment of consumers. The companies’ promises on 5G, rural buildout and in-home broadband are speculative, not specific to the merger and are completely unenforceable. And although it is beside the point for this FCC, the creation of a Mobile Frankenstein to replace Sprint puts the risk of failure squarely on the backs of American consumers. Thankfully, this merger is far from a done deal.  A group of 17 State Attorneys General representing more than half of the US population have sued to block the merger and the trial will start in December. Once again, the states are standing up for consumers when the federal government has refused to do so."

Joshua Stager, senior counsel at New America’s Open Technology Institute: “This decision is a slap in the face to the American people. The Trump Administration is rubber-stamping a blatantly anticompetitive merger that should be illegal under any serious antitrust or public interest analysis. It will raise prices, kill jobs, and worsen the digital divide. The fact that Chairman Pai has kept this order hidden from the public underscores how shameful it is. The deeply flawed scheme to make Dish a new fourth competitor won’t work, leaving consumers stuck with fewer choices and higher costs. When markets consolidate from four to three competitors, they become hopelessly anticompetitive. The FCC is pushing the American wireless market over a critical tipping point. Thankfully, the states are stepping up where the federal government has failed. More than a dozen states, including Texas and New York, are suing to block this merger. This is the right call, and we support their case.”