Don't Expect US Approval of Huge Telecom Mergers
An article from Reuters explains how mergers involving T-Mobile and Time Warner Cable are likely to face a high level of scrutiny from the Obama Administration. Officials are wary of allowing any more power to consolidate among the huge corporations dominating the industry. A merger with one of the smaller companies would have a much easier time gaining approval.
"Regulators could, on the other hand, welcome transactions that bolster new entrants, such as one combining satellite TV service provider Dish Network Corp with T-Mobile, experts say. 'Dish/T-Mobile, from a regulatory standpoint, it would be a slam-dunk,' said Stifel analyst David Kaut. ... The FCC, in an annual report released in March, said competition in the wireless industry is 'highly concentrated.' Similarly, the Justice Department's assistant attorney general for antitrust, William Baer, has described the industry as 'not uniformly competitive.' 'The Department believes it is essential to maintain vigilance against any lessening of the intensity of competitive market forces,' Baer told the FCC in a filing in April related to an upcoming auction of low-frequency airwaves. The government's rejection of AT&T's $39 billion plan to buy T-Mobile from Deutsche Telekom in 2011 remains the biggest shadow looming over big communications deals."
You mean the ones where they collude to keep the cost of service artificially high?
...won't fix. Time-Warner and T-Mobil just need to pony up, and then the crony capitalist decision-making will kick in ala Solyndra, GM, CGI and Serco...
Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)
http://www.lawrenceperson.com/
....the government didn't have this kind of wisdom when they allowed allow of the oil company mergers again. (It's amazing how 100 years and millions and millions of bribe...err, campaign donations have changed perspectives.) How well have they worked out for the American consumer?
Due to the way the cable industry is regulated, there can only be one cable provider in a given market....
Wonderful.
Jesus there are already too few telecom companies in the USA as it is. If they're dead set on upgrading their position from oligopoly to monopoly then let them do so but regulate their rates like we do other natural monopolies. I imagine they'll quickly lose interest in merging.
Time Warner is also a content maker. Couple that with another cable company and COX will suck it - along with other cable companies.
'Twas the night before xmas, and all through the dot
Not a comment was posted, not even bit rot
The flamebait was slung at first post with great care
In the hopes that St. Noob would soon be there
There's a reason telecoms gave the NSA carte blanch to tap whatever it wanted to in their networks, and it wasn't because of patriotism.
Keen observational skills. Maybe they could do the same with food industry as well? I mean they went postal on ma bell, industry is industry right?
they all the same...THEY SUCK
If you allow two of them to merge you've cut in half the number of corporations that can buy your vote.
Bark less. Wag more.
Yes, it's that bad in Canada. You guys in the US actually have it fairly good.
Well that's some heavy relativism. To have it better than the worst market in the first world isn't to "have it fairly good".
We both have total shit for cell phone carriers and internet providers. Your service is worse, but you also have plenty of more important things much, much better than America. I'm sorry, but we really don't pity you.
Ask the NSA to approve Your merger...they are the ones pulling the strings. They will approve or disapprove, and, more importantly, set the board for the new "corporation."
Instead of stifling growth and innovation, we should let companies in every sector become full-fledged monopolies. Give them all a chance to win the game!
After holding onto a monopoly status for up to ten years, then let the regulators come in and break them into little pieces. Resetting the game board for other players. This would open up new markets and opportunities! The breakup of AT&T created thousand of jobs across the country.
While a certain amount of regulation is important. We shouldn't regulate and regulate every sector to prevent anyone from ever reaching the top. Instead of providing consumers with "choice", what we already ended up with is regional dominance.
While the same applies to telecom and every other sector, here's an example: While I don't necessarily like the idea of Walmart being the only retailer available across the country. But if they do it best and become a monopoly, let them. Then after ten years, take that title away. Make each fragment compete with the remnants of the original, each part competing with each other, while also allowing for new players emerge.
Imagine breaking Walmart up by the last digit of each stores zip code. Now you have ten nationwide companies attempting to rebuild supply chains, marketing against one-another, and downright competitive behaviour.
In early 2014 Obama will by executive order abolish the FCC.
All current FCC functions and prerogatives will be handed to the NSA.
Another executive order will mandate the chair of the SEC to be the Director of NSA.
A third executive order will mandate all Telecommunications Corporations be controlled by the NSA effectively making the NSA Director the CEO of all Telecommunications Corporations regardless of feeble nostalgia of "nationality."
Scrutiny from the Obama administration? O please. Sounds like a done deal to me.
False. Comcast owns NBCUniversal and is definitely the established leadership.
Translation: If you want that merger approved, you'd better pay up.