T-Mobile Sprint Merger

Those who have concerns about the competition and consumer welfare effects of the merger between T-Mobile and Sprint have labeled it a 4-to-3 merger in the wireless telecommunications market. While context-specific factors — such as the transition to 5G — may conflict with this characterization, the International Center for Law & Economics undertook a comprehensive literature review on 4-3 wireless telecom mergers in other countries. Our conclusion is that 4-to-3 mergers generate net consumer benefits in the form of higher quality service (due to increased investment), while the effects on price are mixed.

The full report from ICLE is available here.

The report’s appendixes are available here.

Previous commentary from ICLE scholars is available below.