Competition Dies with Sprint.
With the AT&T&T-Mobile deal expected to go through some time in 2012, the destruction of Sprint is almost assured, and with Sprint, competition dies as well. So why will Sprint die? It’s not a question of why, it’s how. Two scenarios could unfold, first, the new AT&T and Verizon will lower their prices, kill Sprint and then raise them again once they are dead or, second, Verizon will buy Sprint. Either way competition is gone. The market is left with only two carriers who will be able to fix prices all they want. In addition with the death/purchase of Sprint the smaller MVNO’s which rely on it will die as well.
Welcome to monopoly.