I am extremely pro-merger. I would have rather 3 very good networks than two good networks and 2 hit and miss networks, even if prices go up(this isnt a for sure thing). Further, with the amount of spectrum the new company would have (and hopefully the capital to deploy it!) They could compete against traditional fixed line broadband, a plan masa aluded to last time he attempted to merge the two companies.
The low end of the market can be served by MVNOs.
Remember this is a capital intensive business, which means the market is better served by fewer players with larger scale and there is another round of massive capital expenditures right around the corner.