Softbank's lobbyists are in full swing....
Another map provided by Mosaik shows the combined wireless spectrum holdings of Sprint and T-Mobile. Spectrum, the radio signals that carry voice and data traffic, is a precious commodity, and Sprint, T-Mobile and their rivals have spent billions of dollars in recent years getting as much as they can. The map below shows that together, Sprint and T-Mobile have done a pretty good job of amassing spectrum that would, when combined, provide the backbone for a truly nationwide network.
Of course, Sprint and T-Mobile won’t make the case that by combining, they will be increasing choice for consumers. They’ll make the case that by combining, they can create a company that can truly compete with AT&T and Verizon both financially and technologically.
In essence, they’ll be posing the question to regulators: Do you want consumers to have four wireless carriers to choose from, two of which aren’t very good? Or do you want consumers to have three carriers to choose from, each of which has nationwide scale and the resources to invest in better technology?
"Necessity is the mother of Invention" Its not 'big is always better'. History is replete with examples of industries that had grown so highly concentrated that competitive forces no longer forced companies to compete through innovation or delivering greater value to consumers. Name examples of where the opposite has occurred... cat got your tongue?
Sprint and Softbank are not ushering in innovations ahead of competitors... until they live up to that threshold, regulators should not allow Sprint to acquire the only 'Maverick' in the space.
Sprint has acquired a lot of spectrum. Unfortunately for investors, the company has failed to make adequate use of the largest parcel, the 2.6 GHz band. The spectrum is sitting there waiting to be put to use if Sprint-SB innovate the use of current LTE-Advanced technology. What's more, if they were to push out ahead of competitors to make use of the more advanced features of 3GPP rel 11, 12, 13 and work with companies like Qualcomm in bringing about smarter smallcells that make use of MU-MIMO, Co-MIMO, eICIC to deploy tiered networks with a portion of user premises deployments, the company could change their competitive position.
By allowing Sprint-SB to acquire T-Mobile threatens both the competitiveness T-Mo has brought to the game but also the motivation for Sprint to 'innovate in he network-to-market'.
Also, if Sprint cannot survive then let them fail. The rules of the road have been long spelled out. Management/BOD decisions caused Sprint to get into its current situation and the government should not be so quick to allow the power of monopolistic aggregation to take the place of market forces. Let Sprint-SB die on its sword if they fail to innovate and execute out of the jam.