Friday, 16 September 2011

Opposition regarding the AT&T/T-Mobile deal



A couple of weeks ago, AT&T announced its proposed purchase of T-Mobile. However, the Justice Department filed a lawsuit soon after the announcement, and now has the backing of seven other states. Since the cell phone industry is already dominated by four large companies, the $39 billion merger between two of the four large carriers could cause quite a stir by discouraging new competition and upsetting the current competition. The merger would put AT&T at the number 1 spot, pushing Verizon out of its coveted position, along with frustrating Sprint, the number 3 spot. It might also increase service prices, as T-Mobile is one of the lower-priced carriers. However, AT&T is trying to be cooperative and ensures that it will reach a favorable agreement. It claims that the merger will bring 5000 jobs back to America from overseas and it plans to extend high-speed internet access to 97% of all Americans.

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