ICLE Letter on The proposed T-Mobile/Sprint merger and the state of the relevant economic literature

Introduction

The International Center for Law and Economics (ICLE) is a nonprofit, nonpartisan research center whose work promotes the use of law & economics methodologies to inform public policy debates. We believe that intellectually rigorous, data-driven analysis will lead to efficient policy solutions that promote consumer welfare and global economic growth.

We write to address a crucial question relevant to your upcoming, March 12 hearing on “The State of Competition in the Wireless Market: Examining the Impact of the Proposed Merger of T-Mobile and Sprint on Consumers, Workers, and the Internet”: the likely effects on consumer welfare that a “4-to-3” merger among the largest US mobile carriers would have. We are currently working on a comprehensive literature review of economic studies looking at such mergers in other developed countries. Although that review is not yet completed, this letter shares several notable preliminary conclusions for consideration by the Subcommittee.