Analysts Doubt Sprint, T-Mobile Merger Would Be Approved
Last week reports emerged that Sprint is contemplating a move to acquire T-Mobile sometime in 2014
. Doubts immediately surfaced over whether regulators who blocked AT&T's acquisition of T-Mobile would allow such a deal, which would reduce the major sector competitors by one at a time T-Mobile's being disruptive on price
. In a survey of what they call an "extraordinarily august group" of analysts, experts and former FCC officials, Financial research firm Moffett Nathanson Research finds that many analysts doubt any such deal would be approved
In addition to the former FCC people, respondents also included telecom and antitrust attorneys, telecom lobbyists not directly involved with the carriers, regulatory academics and antitrust scholars. "The preponderance of respondents put the probability of success at below 50%,” the researchers wrote...Moffett Nathanson also note that the wireless industry’s Herfindahl-Hirschman Index would rise 430 points to 3,151 – higher than the 3,109 score that the AT&T/T-Mobile merger would have yielded.
Judging from user comments here
and around the Internet, most consumers aren't too thrilled on the idea either. Many want T-Mobile to keep doing what their doing, and want Sprint to spend some time focusing on their network, which has been struggling to keep pace in most recent speed, reliability and latency tests.