This article was very interesting and I am interested to see whether or not the government will allow this purchase to occur. It seems strange that AT&T keeps on buying their competitors, I am very curious to see what the company will do in the future. I am also curious to see what will happen to the plans of the customers of T-Moblie if AT&T buys it out.
This article was particularly interesting to me since I have T-Mobile and use to have AT&T. I do not know whether to consider this deal good or bad because by merging T-Mobile prices can go up, but at the same time T-Mobile customers will have access to phones like the iPhone. Also, maybe by merging, the cell service of the two companies may improve, which would be a major plus point. We can only wait and see what happens to find out if this deal is a good one or bad one depending on how long it takes the government to allow the deal and if it even allows the deal. Ajay R. (AP Micro pd. 8)
The idea that AT&T is spending so much time and energy buying out the competition, to me, says a lot about their confidence in their own ability. It makes me wonder why they're so concerned with everybody else when they could be putting the same manpower into developing their projects, sweeping the competition. However, it seems that it's not really about that anymore and AT&T will continue to use piles of money to create even bigger piles of money.
At&t stated that prescription prices fell 50% from 1999 to 2009. It's kind of like how the first HDTV (480p) dropped from $4500 to $500 today or how the first cell phone dropped from $5000 to $50. Prices are meant to go down once the market and supply expands. At&t's up and coming monopoly will reverse this natural trend. Well, I guess I might as well drop my T-mobile plan once my contract expires in November and sign up for Verizon. They have better commercials anyway...
A few years ago, AT&T tried to do a similar merger with its land line service, but found the cost of such a deal prohibitive compared to the benefits. This time, I think AT&T is trying again because the potential benefits are greater. This deal will save 3 billion dollars per year in costs for the combined companies, and this company will become the largest wireless carrier, with even more market share than does Verizon. They are also free to charge higher rates, because T mobile, which had been bringing rates down is being bought out.
At first glance, this deal would seem to have major potential ramifications for consumers in both the short-run and long-run. As the article points out, the further consolidation of the cellular phone service industry could result in higher overall prices, especially due to T-Mobile's low prices. But cellular technological innovation may also suffer, as the companies might very well see less of a need to invest in research and development when the options available to consumers in choosing their service providers are significantly lessened. It will be interesting to watch the federal government's stance on the merger and whether they will be permissive of the buyout; perhaps the industry will be more closely watched and regulated by the federal government if the deal is allowed to go through
It should be interesting to see how consumers react to this merger. On one hand, prices will almost certainly go up and many stores across the country will be eliminated. However, consumers will probably have access to a greater variety of phones and service will improve. It will also be interesting to follow whether the government allows this industry to move closer and closer to monopoly, and whether this ends up being a profitable move for AT&T. - Bert
This article was very interesting to me becasue I have AT&T now and it could mean better service for my phone. However by getting rid of one of its major competitors the prices could go up drastically so this deal may not be good for consumers. Especially since T-moblie was one of the cheaper phone services the competition might not need keep lower prices anymore. Hopefully if that happens the government will step in and break the company up under anti trust laws Keshav K.(AP Micro pd. 8)
Sindhu D.
ReplyDeleteThis article was very interesting and I am interested to see whether or not the government will allow this purchase to occur. It seems strange that AT&T keeps on buying their competitors, I am very curious to see what the company will do in the future. I am also curious to see what will happen to the plans of the customers of T-Moblie if AT&T buys it out.
This article was particularly interesting to me since I have T-Mobile and use to have AT&T. I do not know whether to consider this deal good or bad because by merging T-Mobile prices can go up, but at the same time T-Mobile customers will have access to phones like the iPhone. Also, maybe by merging, the cell service of the two companies may improve, which would be a major plus point. We can only wait and see what happens to find out if this deal is a good one or bad one depending on how long it takes the government to allow the deal and if it even allows the deal.
ReplyDeleteAjay R. (AP Micro pd. 8)
The idea that AT&T is spending so much time and energy buying out the competition, to me, says a lot about their confidence in their own ability. It makes me wonder why they're so concerned with everybody else when they could be putting the same manpower into developing their projects, sweeping the competition. However, it seems that it's not really about that anymore and AT&T will continue to use piles of money to create even bigger piles of money.
ReplyDelete-Ross
At&t stated that prescription prices fell 50% from 1999 to 2009. It's kind of like how the first HDTV (480p) dropped from $4500 to $500 today or how the first cell phone dropped from $5000 to $50. Prices are meant to go down once the market and supply expands. At&t's up and coming monopoly will reverse this natural trend. Well, I guess I might as well drop my T-mobile plan once my contract expires in November and sign up for Verizon. They have better commercials anyway...
ReplyDeleteAbrar Rahman (AP Micro Period 8)
A few years ago, AT&T tried to do a similar merger with its land line service, but found the cost of such a deal prohibitive compared to the benefits. This time, I think AT&T is trying again because the potential benefits are greater. This deal will save 3 billion dollars per year in costs for the combined companies, and this company will become the largest wireless carrier, with even more market share than does Verizon. They are also free to charge higher rates, because T mobile, which had been bringing rates down is being bought out.
ReplyDeleteYada Zhai
At first glance, this deal would seem to have major potential ramifications for consumers in both the short-run and long-run. As the article points out, the further consolidation of the cellular phone service industry could result in higher overall prices, especially due to T-Mobile's low prices. But cellular technological innovation may also suffer, as the companies might very well see less of a need to invest in research and development when the options available to consumers in choosing their service providers are significantly lessened. It will be interesting to watch the federal government's stance on the merger and whether they will be permissive of the buyout; perhaps the industry will be more closely watched and regulated by the federal government if the deal is allowed to go through
ReplyDeleteRobbie M. - AP Micro Period 8
It should be interesting to see how consumers react to this merger. On one hand, prices will almost certainly go up and many stores across the country will be eliminated. However, consumers will probably have access to a greater variety of phones and service will improve. It will also be interesting to follow whether the government allows this industry to move closer and closer to monopoly, and whether this ends up being a profitable move for AT&T.
ReplyDelete- Bert
This article was very interesting to me becasue I have AT&T now and it could mean better service for my phone. However by getting rid of one of its major competitors the prices could go up drastically so this deal may not be good for consumers. Especially since T-moblie was one of the cheaper phone services the competition might not need keep lower prices anymore. Hopefully if that happens the government will step in and break the company up under anti trust laws
ReplyDeleteKeshav K.(AP Micro pd. 8)