The Orange View (on hiatus) Because Apple is great but it isn't perfect

20Mar/11Off

Antitrust regulators could approve AT&T, T-Mobile deal

AT&T's proposed takeover of T-Mobile obviously hurts competition in the wireless market, but some of Stacey Higginbotham's sources in DC still think it will be approved:

Some sources think DoJ won’t scuttle the deal in part because T-Mobile is a fairly weak player in the current wireless industry, and isn’t likely to last without a buyer. Which then would mean the competitive results would boil down to the conditions set by the Federal Communications Commission and the DoJ as part of their approval of the deal. As Derek Turner Research Director at the Free Press notes in an email, “That’s the key question. Is this industry trending towards natural duopoly and is there a mix of oversight and regulations that can make this devolution not create antitrust problems? Having two companies control three-fourths of the market plainly won’t lead to optimal outcomes for consumers or innovators who use the platform.”

GigaOm, March 20, 2011

Posted by Aaron Pressman

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