Most high school students have their own cell phone and by the time they are out on their own, practically 100% of you will be paying for cell phone service to some provider. Many of you have heard that AT&T is purchasing T-Mobile for $39 billion in cash and stock. T-Mobile has been owned by a German company that will receive a share of AT&T of less than 10% as part of the merger. Currently Verizon ranks #1 in customers, AT&T #2, Sprint #3, and T-Mobile #4. This merger will make AT&T #1 with Spring a distant 3rd. The FCC and the department of Justice will review the sale and probably won't make a decision for 12 months. Read the FAQ regarding what the merger means to customers.
What service, if any, do you currently have?
How do you think AT&T will benefit from the deal?
If the telecommunications industry is an oligopoly(market dominated by a few) already, what will be the effect of reduced competition?
What will be the effect on quality, service, and price in your informed opinion?
Why might the FCC and department of Justice block the sale?
AT&T claims that consumers will benefit from the merge. Are there economies of scale (larger companies result in lower costs than smaller companies) in this industry?
Are you in favor of this merger? Why or why not?