Rethink Possible Merger

Unless U.S. regulators block it, the merger between AT&T and T-Mobile is going to create a behemoth cellular phone company. While this news may be good news for a few people, it’s certainly bad news for consumers.

The upcoming merger will result in three major wireless carriers in the United States with AT&T, Verizon and Sprint. What will likely happen as a result is higher prices for T-Mobile users who are brought over to AT&T.

Verizon and Sprint customers should be worried too as Sprint, which is the smallest of the remaining three, “may now be forced to find a merger partner.” It doesn’t really matter if Sprint merges with Verizon or AT&T. What will end up happening is we’ll see only two major wireless carriers from which to choose to provide our cell phone services.

This monopoly on cell phone services will lead to higher prices for consumers since there will be only two options: Verizon or AT&T. We should see in the next few days or weeks whether someone opens an anti-trust case against this merger.

3 thoughts on “Rethink Possible Merger

  1. There are science fiction stories that talk about the future being controlled by a few massive corporations that own everything. These mega-corps essentially rule and war with each other and government is gone, replaced by the mega-corps that own all the essential services are provided by them. In one particular series, who you work for is the way to get ahead, and your obligation to that company is similar to an obligation to the current military, swearing an oath, engaging in company to company sabotage and spying. I was always fascinated by this writers premonitions and foreshadowing of the real potential our world has for this type of society model. Although I see one real problem. In his model if you work for the mega-corp, they really take care of you, from housing to food, to family education, medical, everything is provided inside their own city-like complex. The way in which corporations treat workers today and continue to erode their social and economic ability leads me to believe that this theory will not come to fruition. Instead a mega-corp future could exist, but only with a vast uneducated slave class that has no opportunity, because all the mega-corps, although not monopolies, can keep the workforce alive enough only to consume their goods.

  2. Explain this to me: Why did we break up AT&T in 1984 just so we let the company goes on another shopping spree now? Doesn’t that defeat the whole point of creating the seven Bells?

  3. Because it was cool then Xuanie. Now mergers are cool. Don’t you realize that politics and economics are entertainment. monopoly busting is sooooo 1984, just like VHS, Kenny Loggins, Ghostbusters, Parachute Pants, lots of Hairspray, Cabbage Patch Kids, Stephen King books, and the Cosby Show. Come on, get into the new century, mergers and acquisitions are sexy, like Sex in the City, iPhones, Twitter, Lady GaGa, and reality TV.

    Hopefully you get my sarcasm 🙂
    but truthfully, I am sad to say that this might actually be the case, as popularity swings back and forth it often forgets truth or reason, because they don’t sell hyper-over-indulgent-consumerism for immediate satisfaction and then more immediate disposal

    btw, Xuanie, I have the utmost respect for you, primarily for one key reason. You have endured the painfully political and often self contradicting UMKC econ dept. If you can handle this, the rest of the world should be easy! HA hA 🙂

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