US: DOJ’s William Baer speaks out on telco overhaul

Amid recent months’ talk of major overhauls in the nations wireless and telco industry, the US Department of Justice’s assistant attorney general for the antitrust division, William Baer, has spoken out on the merger rumors.

According to the New York Times, Baer suggested that any major mergers would face significant regulator scrutiny, noting that “it’s going to be very hard for someone to make a persuasive case that reducing four firms to three is actually going to improve competition for the benefit of American consumers.”

While Baer did not refer to any specific deal, his remarks follow speculation that the nation’s number three and number four wireless operators, Sprint and T-Mobile, may soon plan to merge, reducing the number of rivals from four to three.

His remarks also come amid reports Dish Network is looking to aggressively snatch up wireless spectrum in a government auction; while the cable company did not specify what it would do with that spectrum, some experts suggest it could launch its own wireless operating firm.

Reports say Baer is set to speak with antitrust lawyers in Thursday’s New York State Bar Association meeting to warn against telco mergers that do little to address competition issues.

Baer also told reporters that any wireless merger is unlikely to be convincing to authorities, especially since the DOJ blocked AT&T’s 2011 attempts to acquire T-Mobile, a move that has since boosted competition in the industry to the benefit of American consumers, he said.

Full Content: Reuters

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