Wednesday, August 31, 2011

Good Post On Why DOJ's Suit Against AT&T And T-Mobile Merger Is A Good Call

I'm pro-biz.  Rather I'm pro-competition.  Merger are good if they create value for the market, meaning us the consumer.  However, AT&T and T-Mobile merger never made sense for me from the start.  It's why I support DOJ's lawsuit against the merger.  And This Mercury News article is one of the better articles on this matter.

Bottom line:  

  • Eliminate choices.
  • Proposed economic benefits is uncertainty. Using jobs as reason for merger but vague on how much it'll lay off due to duplications.
  • T-Mobile prides itself on offering value.  Without a competitior with 33-million users, AT&T and others have no reason to compete on value.
  • There are cheaper ways for AT&T to build out its network without buying T-Mobile. AT&T has already said it'll spend less than $4 billion to expand coverage from 80% to 97% of US population, much less than the $39 billion cost of the merger.
Take all that together, you come to one conclusion:  the merger is about killing competition and imposing more crummy customer service and shady billing practices.  Plain and simple.  

Honestly, we've all seen AT&T's practices over the year.  And suddenly, it wants to convince the American public that it's got our best interests at heart. Whatev...

Source: Mercury News.

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