The US Department of Justice filed suit to block AT&T's proposed $39 billion purchase of T-Mobile, a move that will have major implications for both companies and for the telecom market.
White & Case Attorney Maury Mechanick, a former senior executive at COMSAT Corporation and Lockheed Martin Global Telecommunications, says that if the merger goes forward, smaller cellular operators would suffer. There’s no way a new entrant to the market could compete with the three major giants, he says.
"This Justice Department action may encourage new entrants into the cellular marketplace," Mechanick says. "A less concentrated market generally means lower the barriers to entry, because less effort and resources will be required to position oneself as a credible competitor."