I’ve been saying for some time now that there are critical items that the FCC is ignoring in their competition analysis of the ATT/T-Mobile merger. I recently came across an Article on Forbes.com that gives a great summary of some of those flows. You can read the article here and I’ve listed the flaws below:
- Totally ignored the Internet’s impact on wireless competition.
- Totally ignored international competitive comparisons that repudiate its conclusion.
- Assumed away all existing wireless competition that does not support its conclusion.
- Totally ignored the financial/investment facts of Deutsch Telecom, T-Mobile’s parent.
- Totally ignored the competitive impact of the FCC-described “looming spectrum crisis.”
- Overplayed the maverick impact of T-Mobile by ignoring Sprint’s maverick incentives.
- Turned a blind eye to the fundamental high-capital intensity of wireless competition.
- Silent about Open Internet presumption that competition can’t protect consumers.
- Totally misunderstood where the real market power resides in wireless devices.
- The proposed Verizon-Cable spectrum sale and cross-marketing arrangement blows up the staff analysis’ central assumption that Verizon and AT&T will not compete fiercely going forward.
There are more but this a good top ten. As you read all the media and commentary. It’s important to think back this reasons and at least as yourself the question why?