When you’re a minor player in a tough, unforgiving marketplace, you should be allowed to merge to survive.  But that is not the way state’s attorneys general see it with the proposed merger of Sprint and T-Mobile US.  They say that reducing the wireless market to three big players rather than two and a group of also-rans will harm competition.  Sprint and T-Mobile have had an impossible time convincing them.  AG’s see oligopoly.  When the market is divided into three, they say, there will be no incentive to cut rates.  Who is right?  The FCC has backed the merger but that hasn’t convinced the AG’s.  It has turned into a PR and lobbying struggle for the two companies.  Chances are they will merge, but they might have to give up more than what they have offered so far.  It is not a pretty position to be in.

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