A Few Thoughts on the Sprint/T-Mobile Merger Rumors

[Commentary] I have some thoughts on the rumors about Sprint merging with T-Mobile. Basically, the national wireless market is already too concentrated. We need more, not less competition. A stronger third-place competitor, better able to keep AT&T and Verizon in check, might sound appealing. But it's not worth the price of losing the number four competitor. A market with only three major carriers would be much more prone to "coordinated effects" where "competing" companies act as an effective cartel, even if they don't meet secretly to split up the market. All they need to do is match each other’s pricing moves and pay attention to press statements and you have the same result as an illegal cartel without any lawbreaking. This is just as bad for consumers.