A merger between T-Mobile and Sprint would adversely affect consumers, believes David Dayen of the New Republic. When T-Mobile was prevented from merging with others in the past, it responded by investing, innovating and offering better and cheaper services than its competitors. For example, its ending two-year contracts and embracing unlimited data plans were copied by other providers. The proposed merger is likely motivated by cutting costs and reducing payrolls. Phone companies have a history of promising investment for preferential treatment, and then not delivering when it is given. The T-Mobile-Sprint merger should be blocked.
Letting T-Mobile and Sprint merge could create a robust competitor to the relative duopoly that Verizon and AT&T currently enjoy, argues the USA Today editorial board. Especially with the coming emergence of 5G, it is important that there is competition in this market. Alone, both T-Mobile and particularly Sprint, which has lots of debt, would have difficulty creating the infrastructure needed to succeed with 5G technology. Critics of the merger ignore that second-tier companies joining to become a first-tier one gives them the ability to better compete. Together, they could seriously challenge Verizon's and At&T's market dominance.