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T-Mobile-Sprint Merger Teeters Between FCC Approval, DOJ Rejection

Citations

TechNewsWorld cites Associate Director Jessica Melugin on competition between wireless carriers.

"No one can be sure of the 'right' number of competitors in a market. There's no objective answer, but most developed countries have two or three dominant wireless carriers," said Jessica Melugin, associate director for the Competitive Enterprise Institute's Center for Technology and Innovation.

"In general, it's wise to view the marketplace not as a stagnant snapshot of what exists today, but in terms of a dynamic and fiercely competitive environment where if things don't improve and innovate, they fail," she told TechNewsWorld.

"Specifically, Sprint has struggled in recent years with profits, and it's fair to say that without the merger, its future as a major carrier is not assured," Melugin added.

"The real question is not between four major carriers and three; it's between two internationally competitive 5G contenders or three, if Sprint and T-Mobile are allowed to combine spectrum and infrastructure resources," she added. "Consumers will benefit from having a more stable and efficient competitor to Verizon and AT&T in the wireless market, as well as a third internationally competitive 5G contender."

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