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Looking at the graph, if you notice the difference between P1 and P2 on the demand curves shows the savings the merger passes on to its customers.
Finally, the simple reason that the Sprint/Nextel merger was an automatic approval in my mind is because the FCC already granted the ATT/Cingular merger which gave them the largest market share by far with about 46 million customers...
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On the same token, Verizon Wireless, a joint venture between Verizon Communications and Vodafone Group, has about 42 million customers. (5) Whereas, the Sprint/Nextel merger would create an entity of around 38 million wireless subscribers with only 22% national market share. Some say that the decrease in the number of industry rivals from five to four might reduce the players' drive and incentive to cut prices...
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Analysis of Sprint and Nextel Merger
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