Creating a monopoly and less competition

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Assignment:

If AT&T and T-Mobile had successfully merged, it would have violated anti-trust laws. Combining these two organizations would have resulted in only three large mobile carriers left and allowed the new company to corner a significant portion of the cellular market, creating a monopoly and less competition. While the deal had some considerations to attempt to help push it through regulatory channels, such as selling some of its customers to Leap Wireless, it just wasn't enough to pass muster. Seaquist (2012) said, "the U.S. economy depends on a fluid exchange and needs unfettered and fair competition to flourish." Taking away the lower-priced, more budget-friendly option of T-Mobile would have led to fewer options in the marketplace for reasonable price points for cellular data plans. T-Mobile offered competitive price points and was responsible for innovative technology, such as launching caller verification and the first nationwide 5G network. Maintaining T-Mobile as a separate entity ensured that pricing and competition remained fluid within the cellular market.

Reference no: EM133455397

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