T-Mobile Merger Approval Violated Every One of the DOJ's 'Antitrust Principles'
techdirt.com
techdirt.com
If we assume positive intent, someone at DOJ was tired of approvals like the T-Mobile deal, and was able to (somehow) build concensus to an announcement of new principles. These newly announced principles are quite a bit different than the old ones, so we shouldn't be surprised that old deals don't align, that's kind of the point.
It's also not too surprising that an old deal finalized a few months before the new principles finalized. Everything is on a long pipeline, and it gets done when it's done, changing principles in the middle is hard --- especially when the new ones are unpublished and you had already done significant work under the old ones.
But the reality was either they merged, or Sprint would shut down. There was no scenario where Sprint stayed in businesses acting as competition.
On top of the that T-Mobile had a really hard time competing with Verizon and AT&T because of lack of spectrum, so preventing them from getting Sprint's spectrum would actually make them less competitive.
I think the author may have forgotten that Verizon and AT&T are competitors to T-Mobile and instead only paid attention to Sprint.
> "Not only did the DOJ ignore all objective data showing the deal would clearly be terrible for customers, the market, and employees"
What data is this? Because out here in the real world the deal has been amazing for T-Mobile customers and the market. Perhaps not employees, but that's not really a reason to stop it.
That is because SoftBank didn't know what to do with Sprint and refused to invest money into the business. When SoftBank bought Sprint, the company was profitable and T-Mobile was unprofitable. Deutsche Telekom had been trying to offload T-Mobile for years but wanted more than it was worth. Slowly the tables turned and T-Mobile became profitable while Sprint started losing money.
Masayoshi Son is the Eddie Lampert of Japan. Son used to be worth about $100 billion, but his bad investments via SoftBank over the last twenty years cut $80 billion off his wealth.
But, even before that, Sprint was realizing the pain of their missteps. Probably the biggest of which was WIMAX, the smaller was taking too long to get rid of IDEN.
Sprint didn't know what to do with Sprint in 2013. Even before the Acquisition they were foregoing parts of their normal maintenance and instead 'living' with problems.
The one major saving grace in all of it? The biggest reason it was still good for TMO? Sprint had a LOT of sub-1000Mhz spectrum whereas TMO had none.
And, to TMO's credit... They played the game very well. Their roaming deal from AT&T before the sprint merger completed allowed them to temporarily gloss over lot of their coverage issues until they were able to start using that spectrum for LTE (Also that nice piece of 700mhz they got from VZQ).
Source: Sprint user from 2009-2013, switched to TMO, Used to deal with maintenance of Sprint Infrastructure in a large municipality as a contractor.