Why AT&T/T-Mobile Deal Would Help Industry (16:38)

Posted on by Abby Johnson |

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AT&T recently announced that it would acquire T-Mobile USA for $39 billion, provided the companies receive regulatory approval. Because it would create the largest wireless provider in the U.S., some people fear that the merger would drive down competition.

Jim Lakely, the Co-Director of the Center for Digital Economy at The Heartland Institute, disagrees with this way of thinking. He believes that the deal will go through for a variety of reasons.

For starters, he told WebProNews that the marketplace is actually more competitive than people think. Although consumers are primarily drawn to the bigger players like AT&T, Verizon, T-Mobile, and Sprint, there are smaller providers such as Leap Wireless and U.S. Cellular that serve as competition as well.

A lot of people are also opposed to the deal out of fear of price increases. Because the wireless marketplace is so “customer-sensitive,” Lakely doesn’t think this would be problem. If prices did go up, he said customers would move to another provider, which is not what AT&T or T-Mobile would want.

He believes the biggest benefit of the merger would be the development of 4G for consumers. By combining the talents and assets of each company, he said that 4G would be available to more people quicker.

What are your thoughts on the merger?

Posted in: Advertising and Marketing, Jim Lakely, Mobile, Technology, Wireless
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