Computer Companies Seek Thorough Review of T-Mobile-Sprint Deal

CCIA weighs in; CCA says members will evaulate deal individually
Author:
Publish date:
Updated on

The Computer & Communications Industry Association (CCIA), which represents computer and edge companies, has called for a "thorough review" of the proposed combination of T-Mobile and Sprint, and obviously has some potential concerns, but suggested the deal could be good for competition.

Tmob- sprint

That finessed approach is likely because both T-Mobile and Sprint are also members of CCIA.

The two wireless companies announced Sunday (April 29) that they had struck a deal to merge.

CCIA, whose members also include Facebook, Amazon, Netflix and Google, suggested the combination could help a pair of innovators better compete against "two powerful companies [that] have dominated much of the mobile phone market; that would be former Bells Verizon and AT&T."

Related: D.C. Eyes Meld of Sprint/T-Mobile

But CCIA signaled the jury was not in on whether combining the number three and four company in the space would create a more or less competitive market.

“Thankfully in recent years both Sprint and T-Mobile have improved the market by offering innovative and alternative mobile phone deals to consumers," said CCIA president Ed Black. "This competition has served consumers well, and the key question which must be addressed is whether this merger will result in a more or less competitive market and allow consumers better choices. It is thus very important that an in depth review of this merger be undertaken by the appropriate government agencies.

“While the combination of the third and fourth largest companies should be expected to receive great scrutiny, historical, unique, and important aspects of this market make such review imperative," Black added. "Whether the merger will result in a market with a stronger third company continuing to put competitive pressure on its two large rivals or a less dynamic market, the merger proposal will need to be the focus of analysis. Along with the regulators we look forward to seeing more details about the proposal in the coming months, and expect to review the justifications and arguments pro and con with great care.”

Related