The FCC May Be Inclined to Approve a Sprint/T-Mobile Merger

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While it’s been highly debated whether or not the FCC would approve a merger between the third and fourth major mobile carriers, there’s reason to believe that this deal could go through. Despite the fact that AT&T’s proposal to buy out T-Mobile was denied a little over two years ago, industries are changing and Sprint is in a completely different position than AT&T. Oligopolies may have been something that were frowned upon years ago for fear of reducing competition, that isn’t the case these days—as recently illustrated by the airline industry. The top 5 airlines in the United States are Delta Air Lines, United Airlines, Southwest Airlines, American Airlines, and US Airways. A few weeks ago American Airline and US Airways partnered, taking their number of enplaned passengers from 91,153,375 and 54,204,283, respectively, to total 145,357,658, which surpasses Delta’s year to date number of enplaned passengers and their fleet size. American Airlines and US Airways are in similar positions to T-Mobile and Sprint when looking at the mobile carrier market. Neither of these companies is at the top, but they are certainly close.
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January 6, 2014 |
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