Light-Touch Regulation Should Drive Merger Approval

In a free market, unless there is a clear threat to consumers and taxpayers, businesses should generally be able to proceed with mutually beneficial transactions without fear of heavy-handed government interference. The proposed merger between T-Mobile and Sprint will result in lower prices, more choice, and a better telecommunications market for American consumers. Unfortunately, progressive anti-business groups have begun to mobilize in opposition to the proposed merger, spearheaded by the Open Market Institute - a think-tank with ties to Democratic Party officials. This bad-faith opposition will result in worse outcomes for Americans and our market for next-generation technology will suffer.

As NTU wrote when we filed comments in support of the merger,

Our country is indeed at a crossroads: we can either work to solidify America’s standing as a leader in technological innovation, or allow the status quo and its challenges with providing underserved communities digital access to persist… the creation of an expansive and modern 5G network is vital to being globally competitive in a fast changing and digitally dependent world. This new evolution into wireless technology has the potential for enormous economic and social benefit - both of which increase our standard of living.

The Federal Communications Commission has emphasized repeatedly that the U.S. needs to stay ahead of the curve in the race to the next generation of wireless technology. The merger between Sprint and T-Mobile will allow for another player at the top of the market, on the cutting edge of developing technology, while doing nothing to harm other, smaller competitors.

A combined T-Mobile and Sprint will give the U.S. three of the world's strongest telecommunications companies and will give American consumers unprecedented choice and access in the market. There are still too many costly barriers to development in the U.S., and the additional capital that the combined companies will have will make it easier to bring more competition to more people.

Both President Trump and the FCC have emphasized the need for the U.S. to stay on the leading edge of the development of 5G communications technology. Contrary to these new command-and-control progressive narratives, allowing the free market to create more competitors in the high-end market will be good for consumers and good for America.