At&T and T-Mobile Merger

2889 Words12 Pages
Executive Summary AT&T and T-Mobile have announced a potential merger. This deal is worth over $39 Billion and would ultimately merge the number two wireless provider in the United States with the fourth largest provider. There are many different concerns about this potential merger. The main issue on hand is that this merger would potentially create a duopoly making consumers have less options in choosing cell phone providers and plans. This merger has several different interest groups waiting for results. They include current consumers of both AT&T and T-Mobile, other cell phone providers such as Sprint, Verizon and Cricket, the Department of Justice and the Federal Communications Commission. A main concern of this merger is that of competition. If this deal goes through, it would leave just three major cell phone companies in the country: AT&T, Verizon and Sprint Nextel. This deal would ultimately make AT&T the largest cell phone service provider. This wouldn’t be a bad thing for AT&T, but it is concerning to consumers, other competitors and the DOJ and FCC. Verizon has stated that this merger would benefit consumers and allow the company to expand high-speed fourth-generation wireless service across the country faster. They have also said this merger would create over 100,000 jobs. Sprint and the FCC, however, do not agree and both have filed separate suits against the merger There are several different options for how AT&T should handle this situation. They could cancel the merger deal with T-Mobile and pay almost $6 Billion in fees, they could submit a new, revised plan to the DOJ and FCC or they could do nothing and let the system decide for them what to do. The best plan at this time is to submit a “Plan B” to the DOJ and FCC and to work more closely with them in order to get this deal to go through. Introduction

More about At&T and T-Mobile Merger

Open Document