“This merger raises several red flags for consumers,” Jonathan Schwantes, senior policy counsel for Consumers Union, the advocacy division of Consumer Reports, said in an interview with the magazine. “Right now, Sprint and T-Mobile provide much-needed alternatives to Verizon and AT&T, with some innovative plans and pricing options that keep some semblance of competition alive. If you combine these two companies, those incentives and options could dry up.”
MarketWatch adds that if the companies combine, there could be two other downsides for customers. One is that Sprint’s lower-cost plans could be eliminated after joining with T-Mobile. Another is that unlimited data plans at all four major carriers could disappear. If one carrier chooses to end its unlimited data offering, the two other companies could follow suit — with less competition, all three networks would need to worry less about customer acquisition and retention, and therefore have less incentive to provide better deals for their customers.[Money: The T-Mobile and Sprint Merger Could Raise Your Cell Phone Bill, Consumer Experts Warn]
