In the fast-paced, highly-competitive market of wireless phone and Internet access, this announcement stands out. The wireless carrier with the second-most subscribers, AT&T, is to acquire the number four carrier, T-Mobile USA. Some would say that this is a grave threat to competitiveness, risks reducing competition and increasing prices on everyone, and so should be stopped by the benevolent masters of the Obama administration. I disagree.
This is a young and vibrant market, with many competitors already out there, and more yet to come. The acquisition of a lagging company by the #2 company only puts pressure on the #1 firm, Verizon Wireless. Not only that, but existing regulations are plenty strong, and will almost surely result in resources being made available to lesser firms, reshaping the market without reducing choice.
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