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Thread: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    Quote Originally Posted by Lord Tammerlain View Post
    What would the market share of ATT/T Mobile after the merger? Anticompetitiveness boards generally see problems when the market share of anyone company gets above 50%. Of course there could be specific localities with less or higher levels of market share that might present an issue. Another factor to consider, most of the smaller cell companies rely on the infrustructure of the majors (including cell towers) to operate. Given the market power and lobbying power of a larger ATT, it could fight to change the regulations seeking to increase the fee chargerd to them
    I don't think it is so much about market share per say as it is about cornering the available RF spectrum.

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    Quote Originally Posted by OpportunityCost View Post
    This is ignorance on display. There are a lot more than 2 massive telecoms in the US. The wireless market is filled with AT&T competitors. If they suck that bad they wont grow as cell customers are more demanding than land line customers and a lot more likely to switch companies with less hassle on the customer end. As for the 5000 jobs, without the customer growth from the merger they have no economic reason to add them. They wont do it simply out of charity, they have to have an economic reason to do so.

    The market should decide, not the government---unless and until a monopoly seems to exist and in this case? That dog won't hunt.
    As a practical matter there are not many choices in most locations. I live in a pretty big metropolitan area I basically have a choice between AT&T, T-Mobil, and Verizon. That's it. I don't think it will lower prices are create jobs to eliminate 1/3 of the competition.

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    Quote Originally Posted by AdamT View Post
    As a practical matter there are not many choices in most locations. I live in a pretty big metropolitan area I basically have a choice between AT&T, T-Mobil, and Verizon. That's it. I don't think it will lower prices are create jobs to eliminate 1/3 of the competition.
    Sprint, TracPhone (NET10 and Smart Talk), Jitterbug, US Cellular, Virgin Mobile or Boost Mobile are not available in your area?

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    -chuckles- I agree the DoJ should stay out of “legal” business, they should just stay in the illegal gun running business. At least there they can tell the truth, nobody knew what was going on .

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    Quote Originally Posted by Hugh_Akston View Post
    Sprint, TracPhone (NET10 and Smart Talk), Jitterbug, US Cellular, Virgin Mobile or Boost Mobile are not available in your area?
    Not that I know of. I suppose it's possible but I haven't seen any ads or stores for those companies. OTOH, there's an AT&T store right next to a T-Mobil store in my neighborhood. Think one of those would be closing its doors if the merger goes through?

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    Don't all the other 'telecoms' basically buy their bandwidth from the handful of largest?

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    Quote Originally Posted by Hugh_Akston View Post
    If say GM and Ford merged, I'd see your point. But the problem lies in that there is plenty of competition in the cellular market. There are literally over 180 cellular providers in the US - source, so the angle the DOJ is taking in that it would create a monopoly simply doesn't fly in the face of the facts.
    Actually it does fly on the facts. ATT&T, Verizon, Sprint and T-Mobile are 90% mobile service providers, as in they cover most of the US. Those 176 others you state, cover local areas only and are not as national as ATT&T, Verizon, Sprint and T-Mobile.

    If ATT&T gobbled up T-Mobile, then the competition in the market would be much less, as ATT&T suddenly would sit on a 40+ (almost 50%) market share. This would have an impact on prices.. you already pay far far more than Europeans for your mobile phone service and it would not mean that the now 3 big mobile providers will invest in infrastructure to expand the system, which is much much needed.

    AT&T is overpriced and they pretty much do suck.
    Lack of competition does that as well as lack of regulation and legislation to encourage more competition. But despite the "over pricing" and sucky service, they still are one of the largest and T-Mobile is loosing customers hand over fist. The whole mobile service provider system could use a good shake.... like splitting up Verizon and ATT&T to create more competition.
    Last edited by PeteEU; 08-31-11 at 06:02 PM.
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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    The whole mobile service provider system could use a good shake.... like splitting up Verizon and ATT&T to create more competition.
    Are you talking about government intervention?
    Got a legal reason for such?

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    I don't care about the 5k jobs, but the health of the market. The less corporate control the better. Few mergers ever result in better consumer prices or innovations, but more market stagnation - and the telecom sector is relatively inflexible. People needs phones and communications, so demand is less responsive to price changes.

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    Re: DOJ Attempts to Scuttle AT&T's $39B T-Mobile Buy

    Quote Originally Posted by OpportunityCost View Post
    Are you talking about government intervention?
    Got a legal reason for such?
    Why do I need a legal reason to create more competition in the market? Thought you were a conservative and believed in the idea of competition.. guess not.
    PeteEU

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