A Stronger T-Mobile Could Help Keep Verizon and AT&T in Check

[Commentary] T-Mobile and Metro PCS have announced that they intend to combine into a new company. The deal needs to obtain regulatory approval--and Sprint might make things more interesting with a bid for Metro PCS of its own. But just looking at the proposal on its own terms, this is a very different situation from when AT&T tried to buy T-Mobile. That transaction would have gutted nationwide wireless competition. The T-Mobile/Metro PCS deal could improve it. On balance, this transaction is likely to be good for value-conscious subscribers, including prepaid customers. As the domestic wireless market has approached saturation, even AT&T and Verizon have found it worthwhile to go after prepaid users. Since T-Mobile still positions itself as a "value" carrier, it seems likely that it'll continue to offer the same kinds of plans it offers today. Moreover, a stronger T-Mobile might actually put some pricing pressure on AT&T and Verizon, which would be a big win for consumers overall. If it does turn out that there are particular problems that are not yet apparent--consumers left behind, or local markets were there are competition problems--the FCC should certainly dig into them and use its public interest authority to craft an appropriate remedy.