Tuesday, March 22, 2011
I addressed what the AT&T and T-Mobile merger would mean and little to none of it good for consumers. But its always nice when mainstream media agrees, so below, is the NY Times' take on the merger...
For Consumers, Little to Cheer in AT&T Deal
"The $39 billion proposed merger of AT&T and T-Mobile could save the companies a lot of money. For everyone else, it could cost a lot of money. No sooner did the two companies announce a $39 billion merger on Sunday than industry analysts began assessing the impact on the biggest potential losers in the deal: consumers.
"If approved by regulators, the merger would leave just three major cellular carriers in the United States, a development that consumer advocates warn could eventually lead to higher prices for a wide variety of services. For this reason the deal is likely to attract close scrutiny in Washington."
"Competition is likely to suffer, leading to higher prices and less innovation. That is because the deal would leave just AT&T, Verizon Wireless and the much smaller Sprint to divide up the voracious smartphone market"
"One burning question raised by the potential of a merger with AT&T is what will happen to the wide range of inventive T-Mobile data plans, which are some of the lowest in the country, and have helped keep pressure on competitors... AT&T is expected to honor contracts through their expirations, but it is unclear what will happen once those contracts expire."
~ Perhaps its a good time to start time to learn morse code?
Posted by Susquehanna at Tuesday, March 22, 2011