One of the big issues T-Mobile will have to fight back against if it wants to successfully merge with Sprint is market consolidation. If the two companies merge, the US will go from four major wireless service providers to three, therefore reducing competition. Given how aggressive (and successful) T-Mobile has been over the last several years — ever since its proposed merger with AT&T failed — you can see why this might be an issue.
But if you ask T-Mobile, that isn’t what’s happening at all. In its merger announcement, T-Mobile directly addresses the competition issue by arguing that, in fact, there are currently “at least seven or eight big competitors” in its industry. Sorry, what?
Conventional wisdom, as well as facts and history,...
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