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Thread: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    Quote Originally Posted by DashingAmerican View Post
    While I agree somewhat, The at&t - T-Mobile merger wouldn't create a monopoly by a long shot. Thus there is no grounds for the lawsuit in the first place.


    On a personal level, I hate the idea of at&t owning T-Mobile because I hate at&t.
    American antitrust laws don't solely govern monopolies, but oligopolies as well, along with other unfair business practices. We can argue about how useful or necessary the antitrust laws in this country really are, but the grounds for the suit are there according to the laws currently on the books. Now it's up to the US District Court in DC...
    Last edited by StillBallin75; 08-31-11 at 08:36 PM.

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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    Quote Originally Posted by DashingAmerican View Post
    While I agree somewhat, The at&t - T-Mobile merger wouldn't create a monopoly by a long shot. Thus there is no grounds for the lawsuit in the first place.


    On a personal level, I hate the idea of at&t owning T-Mobile because I hate at&t.
    And on some level, I'm OK with the merger too. Especially if it means that I can get an iPhone (as a t-mobile subscriber).

    However, I think it's right for the government to at least look at it before letting it go through. Most cellular traffic already goes through 4 carriers. This would reduce the number to 3, and eventually would force Sprint to sell because they won't be able to compete against the other 2. It's not a monopoly, but it does set the stage for a duopoly.


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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    I like Stillballin75's graph (see post #9). Talk about the potential lack of choice and competition!

    I think people forget just how big and how powerful a monopoly like Bell Systems once got. AT&T is headed in that same direction. Thank God for other VOIP service companies like Vonage and Packet 8X8....assuming one wants or needs to retain a landline to the world. For cell phone communications, it looks like eventually there will only be three companies to choose from: Verizon, Sprint-Nextell and AT&T. Honestly, this scares me because we could easily see a repeat of the Bell Systems monopoly if we're not careful.

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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    What makes people think that any dominating companies aren't working in tandem together?

    Most oligopolies do this: swap CEO's, share trade 'secrets', predetermine prices . . .
    Monopoly or not - the dirty work happens regardless of what the gov permits or doesn't permit.
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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    Quote Originally Posted by Aunt Spiker View Post
    What makes people think that any dominating companies aren't working in tandem together?

    Most oligopolies do this: swap CEO's, share trade 'secrets', predetermine prices . . .
    Monopoly or not - the dirty work happens regardless of what the gov permits or doesn't permit.
    I hear what you're saying, but there are two sides to this debate.

    On the one hand you have successful monopolies like the TVA.

    Then you have others like Blue Cross/Blue Shield operating nearly unopposed in some states.

    I guess it all depends on the ethical practises of the company - are they all-in for profits by dominating market share or are they moreso for providing the best service(s) at a fair price to their customers?
    Last edited by Objective Voice; 08-31-11 at 10:52 PM.

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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    Quote Originally Posted by StillBallin75 View Post
    Haven't you ever heard of the words "antitrust" "oligopoly" and "Baby Bells"?

    I doesn't take a genius to figure out the microeconomic effects of a duopoly (Verizon and AT&T) possessing 80% of the market share...
    So why is it OK for the government to have a monopoly on health care?
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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    Quote Originally Posted by Objective Voice View Post
    I hear what you're saying, but there are two sides to this debate.

    On the one hand you have successful monopolies like the TVA.

    Then you have others like Blue Cross/Blue Shield operating nearly unopposed in some states.

    I guess it all depends on the ethical practises of the company - are they all-in for profits by dominating market share or are they moreso for providing the best service(s) at a fair price to their customers?
    Per the Blue Cross/Blue Shield thing: part of their monopolization (and they're not the only one like this) is becaues they're not permitted to function nation-wide without having a physical hold in the state itself.

    Insurance companies are relegated and restricted to certain areas under certain pretenses and requirements - the government, therefor, has removed the 'open and competitive market' required to be an 'evil' monopoly and, instead, made it harder for new companies to gain a foothold and not legal for existing companies to spread out easily.

    Ironic - but there it is.
    Last edited by Aunt Spiker; 08-31-11 at 11:16 PM.
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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    People who oppose anti-trust regulation should really read some freakin history books.
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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    Quote Originally Posted by StillBallin75 View Post
    Haven't you ever heard of the words "antitrust" "oligopoly" and "Baby Bells"?

    I doesn't take a genius to figure out the microeconomic effects of a duopoly (Verizon and AT&T) possessing 80% of the market share...
    The question to ask is why do they have 80% of the market share? It may not all be economics. Is it they actually do have better coverage, service and plans? My experience in Arizona is Verizon has the best remote area coverage. It also seems to have great coverage when I travel to other States.
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    Re: Obama Administration Sues AT&T to stop its Merger with T-Mobile.

    Quote Originally Posted by rocket88 View Post
    Interstate commerce is regulated by the Federal Government. It's right in the Constitution. I mean, it says it.

    The merger is nationwide (not just in one state), therefore it is "interstate" and subject to the Federal Government's Constitutional authority to regulate interstate commerce.




    It's not about prices going up it's about competition. Competition is the lifeblood of a free market economy. It doesn't take a genius to figure that less competition is not good for a market economy.

    Conservatives love the market economy and Constitution, yet apparently you couldn't be bothered to understand either. At least not if it gets in your way of hating Obama.
    AT&T was going to re-import 5,000 jobs back to the United States, if this merger went through.

    I reckon we can kiss those good-bye, now.

    So much for our pro-job president.
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