Sprint/T-Mobile a Coin Toss Despite DOJ Words, Analysts Say
Regulatory OK prospects for T-Mobile buying Sprint seem “relatively dim” even with Assistant Attorney General Makan Delrahim’s recent comments that there’s no magic number of carriers (see 1806050018), MoffettNathanson analysts said Thursday. Odds remain fifty-fifty, with the deal’s Herfindahl-Hirschman Index…
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measure of market concentration playing an important role, they said. It’s “partially true” the companies together make a stronger competitor to AT&T and Verizon, but “counter-arguments are just as compelling,” including the industry’s high HHI and concerns about foreign investment, spectrum ownership and the wholesale market, they said. DOJ may be reviewing how Sprint/T-Mobile may affect prices of smaller wireless companies that buy wholesale access from the carriers, Reuters reported Thursday.