2018-05-04 06:29:00 Fri ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
Commerce Secretary Wilbur Ross suggests that 5G remains a U.S. top technology priority in light of the telecom merger proposal between Sprint and T-Mobile as well as President Trump's ban on the Broadcom-Qualcomm merger. Ross highlights the strategic importance of 5G wireless communication as part of the core national economic security agenda. The recent telecom merger plan between T-Mobile and Sprint can help propel AT&T and Verizon into more active pursuit of 5G technology. This $26.5 billion all-stock merger caps 4 years of on-and-off merger talks between the next largest U.S. wireless carriers behind AT&T and Verizon.
U.S. regulatory agencies are likely to grill these tech firms on how they plan to price wireless service packages. Both wireless carriers expect to invest $40 billion over the next 3 years to upgrade their wireless networks to facilitate 5G communication technology. The joint company would encompass about 120 million subscribers within the current wireless networks of T-Mobile and Sprint. Network effects and externalities can spill over to benefit the next consumers who then enjoy the fruits of healthy and intense competition between T-Mobile and AT&T and Verizon. The Federal Communications Commission proposes new auctions of high broadband spectrum to speed up the launch of next-generation 5G networks.
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