At & T Merger Essay

In a normal competitive market, when a company decides to merge with another competitive market, it’s usually a sign of attempting to get ahead from the rest of the market. In this current year, two well-known company providers, AT&T and Time Warner Merged together, AT&T accomplished this mission with a sum of $85.4 billion. Although property rights are not being violated, I think this merge that has already occurred will result in higher prices for the costumer, while bringing more income for the company. AT&T is slowly eliminating opposing threats, which can cause this company to become a monopoly. “First, it’s not aimed at strengthening AT&T’s ability to compete in its current business- because the company faces no competition.” As mentioned from my
source, if this company has no competition, this can lead to customers paying higher prices. When providers have competition, they want to obtain the most amount of customers, so in some cases this can lead to lowering prices in order to get your business.
This type of action as well as ones made in the past by the same brings positive as well as negative results to both sides.
AT&T becoming closer and closer in becoming a monopoly. Those that had contracts with Time Warner, will more than likely abide by those rules until the document has been concluded. Once that document has reached its end, those former customers will be introduced into new rules by AT&T. In the long run, AT&T will be in charge of being the only provider for Television, Cell phone, as well as home phone, and internet provider. I believe there are two winners during this type of merge, AT&T as well as the former competitor. Because AT&T gets to stay in business, and the other gets a payout, or a quick gain in exchange for the company. But we know AT&T will make that money back. I don’t recommend other companies, present or in the future to merge with AT&T as it may cause a monopoly. Even though AT&T is already a well-known company and has already established a reputation within the public and other businesses. It will be an extremely difficult opponent to take down. As a quick result to eliminate this company, none come to mind. I don’t think this company will ever be taken down by another
company.
In my previous paragraphs I discuss my belief, about AT&T becoming the only provider and will raise prices for the consumer. If prices do go up, this will surely effect third world countries such as Mexico and Brazil. Both of these countries share the same dilemma, most of their population is made up of a lower class. Which means when the prices increase, AT&T will have fewer customers due to the insufficient funds. Even though they will be making more from each customer, the amount of customers will surely drop.