Unlike the AT&T/T-Mobile merger which regulators rejected, the proposed T-Mobile/Metro PCS merger will get quick DOJ and FTC approval. Why? While the AT&T merger would have eliminated the largest low-priced competitor from the marketplace and increased industry concentration at the top, the Metro PCS merger enhances competition by merging two weak carriers to hopefully create a more viable #4 carrier, that can better compete with Verizon and AT&T.
Tag Archives: Low Cost Carriers
Airline Deregulation Hits Airlines
30 years after deregulation most airlines lose money. While high fuel prices don’t help they have only played a role recently. The key factors are plummeting demand following 9/11 that left demand weaker in ’09 than it was in ’00 and large cost difference between legacy carriers (LC) and low-cost carriers (LCC). LC costs have remained 30% to 60% higher than LCCs since deregulation, and 40% higher in the last decade.