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COMMENTARY OF THE DAY
By
Robert Namer
Voice Of America
©2020 All rights reserved
January 17, 2020

     The deal should not be approved. A group of U.S. states suing to block T-Mobile US Inc from merging with Sprint Corp on Wednesday told a federal judge that the deal would raise prices for consumers, while the phone companies pushed back and emphasized they would compete aggressively to push prices down. The states filed a lawsuit in June to block the merger, saying it would harm low-income Americans in particular.

     T-Mobile and Sprint contend that the merger would enable the combined company to compete more effectively with dominant carriers Verizon Communications Inc and AT&T Inc. U.S. District Court Judge Victor Marrero, who will decide the fate of the merger, heard closing arguments in the case on Wednesday. Marrero did not ask any questions of either party and said he would make a decision “as promptly as possible.”

     Glenn Pomerantz, a lawyer for the states, said that the case would impact at least 130 million customers, since a merger would leave the United States with three major phone carriers instead of four. “If this merger goes forward, they’re at risk for paying billions of dollars more every single year for those services,” he said.

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