Saturday, September 3, 2011

TMobile Customers - Good news!


Total cut and paste job here:
AT&T argued several months ago that its proposed $39 billion buyout of T-Mobile USA posed no danger because the US wireless market features "sharply declining prices, dazzling innovation, soaring output, enormous product differentiation, new entr[ies], and fierce advertising."

The US government disagrees. Today, the Department of Justice filed suit in DC's federal court, arguing that the merger violated antitrust law. "AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market," said a copy of the US complaint seen by Bloomberg.

This morning, Deputy Attorney General James Cole spoke at a press conference announcing the lawsuit, and he summed up the basic reason for government opposition:


Right now, four nationwide providers account for more than 90 percent of the mobile wireless connections in America, and preserving competition among them is crucial. For instance, AT&T and T-Mobile currently compete head-to-head in 97 of the nation’s largest 100 cellular marketing areas. They also compete nationwide to attract business and government customers. Were the merger to proceed, there would only be three providers with 90 percent of the market, and competition among the remaining competitors on all dimensions—including price, quality, and innovation—would be diminished.

As can be seen in the Department’s complaint, AT&T felt competitive pressure from T-Mobile. One example cites an AT&T employee observing that “[T-Mobile] was first to have HSPA+ devices in their portfolio…we added them in reaction to potential loss of speed claims.”

So as you can see, a merged AT&T and T-Mobile would combine two of the four largest competitors in the marketplace, and would eliminate T-Mobile, an aggressive competitor, from the market.

*end of cut and paste
YAY YAY YAY is all I have to say. One main reason I do NOT have an I phone is due to all the complaints I hear from my IPhone friends. I have to say I love my DROID and hope to continue to have UNLIMITED DATA, TALK and TEXT that is actually reliable for the fraction of the cost that MABELL wants to charge ;P  I priced them out and for the number of minutes I talk on the phone, I would never be able to afford the monthly rate At&t wants to charge. (sorry to offend you iphone readers, including Court!)
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1 comments:

Amanda said...

I'm with Tmobile and I have an iphone, and I love it!!! I hope they can't ever merge the gov has the idea right here!!

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