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2 Arguments

In: Business and Management

Submitted By jhrvam
Words 286
Pages 2
ECON220- GP

Below, I will give two arguments in reference to the AT&T and T-Mobile merger. The first argument will be in favor of the merger and the second being opposed to the merger. Argument in favor: The merger will benefit workers and consumers for a few different reasons. T-Mobile, who is financially incapable of truly accessing the potential of their high speed network. The 39 billion dollar acquisition will ensure that the high speed network expands to ninety seven percent of the population. AT&T, who has a track record of poor reception and coverage will benefit from the merger, allowing them to maintain customers as well as acquire new ones. The workers with T-Mobile will suffer no involuntary job loss. The merger will maintain jobs as well as give opportunity for new ones. The merger will benefit current T-Mobile subscribers, giving them access to more services such as broadband internet connection as well as paid television services. Argument opposed: The disadvantage to this merger means possible price increases for their wireless service. T-Mobile who is known for low priced plans and phones would be adopted into a company that does not offer economically sound plans. The merger has the potential to create a saturated market, giving the majority of stake in the wireless provider market to AT&T. The merger could take a long amount of time, having to gain approval from the FCC and the Department Of Justice. In my personal opinion, the FCC and the DOJ will not allow AT&T to acquire without selling part or perhaps even all of the assets that are gained by purchasing T-Mobile USA.

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