AT&T’s proposed $39 billion purchase of T-Mobile USA will have a negative impact on consumers, warns a new report released by leading mobility research firm Yankee Group. After analyzing Yankee Group consumer data and using the U.S. Department of Justice’s (DoJ’s) market concentration metrics, Yankee Group contends the merger will increase market concentration, decrease competition and raise average mobile prices in the most heavily populated U.S. wireless markets. The firm urges the FCC to block the merger unless it plans to take a stronger regulatory stance.
“We believe this merger will reduce choice for consumers and, more importantly, leave little incentive for AT&T to offer competitive pricing for unbundled mobile services,” said Gigi Wang, Yankee Group’s chief research officer and co-author of the report, “AT&T/T-Mobile Merger: More Market Concentration, Less Choice, Higher Prices.”
