T-Mobile and AT&T Merger Essay

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For months, the prospect of a T-Mobile and AT&T merger has become more public. The prolonged merger discussion has left the public wondering if the acquisition will allow AT&T to completely rule the telecommunications market, leaving Verizon and Sprint in the dust. Mobile subscribers have been left unsure by the shocking announcement, wondering how their pockets and cellular services will be affected. With lawsuits being filed by both the Department of Justice and Sprint, the future of the acquisition is unclear. AT&T stands by its history of fair dealing, publishing the following in its Code of Ethics:
AT&T does not seek competitive advantages through illegal or unethical business practices, meaning that no employee, officer, or director
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The fear of the same monopolistic effect has increased due to the media’s recent reports that announced AT&T’s plans to acquire T-Mobile. AT&T publicly revealed on March 27 that it had agreed to buy T-Mobile USA from Deutsche Telekom for $39 billion (Sorkin, 2011). AT&T currently ranks second in the industry, with Verizon falling in first, T-Mobile in third, and Sprint in fourth. Considered as one of the largest telecom mergers, the deal would leave Verizon and Sprint lagging behind based on the number of subscribers, pushing the companies into lower ranking positions within the market. Currently, AT&T and Verizon account for a large percentage of the market, but it is possible that soon AT&T will advantageously gain a subscriber base twice that of Verizon. It is likely that AT&T would gain 130 million subscribers from merging with T-Mobile (“AT&T and T-Mobile”, 2011). Purchasing T-Mobile and gaining a large subscriber base would be unethical on AT&T’s behalf because the company’s size could stifle innovation and competition within the telecommunications market, something that antitrust laws do not condone. This is bad news for consumers who would be faced to deal with the after effects of the merger, such as fewer telecom choices, higher prices, and lower quality products to fit their mobile wireless needs. The approval of this

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