In recent news the cell phone company, AT&T made a business proposal to T-mobile to buy them for $39 billion. AT&T is buying T-mobile so that they can get the cell phone towers that belong to T-mobile in order to allow their network to grow and become more stable (less dropped calls and dead zones) – but is that their only reasoning behind this business deal? T-mobile is the fourth largest cellphone company in the United States, and with it now merging into one of the other top three companies, what does that mean for the furture of cell phone plans? With less cell phone companies there is less competition between them. This means that there aren’t as many reasons for them to lower their prices and the competition is less intense and more even. T-mobile was the least expensive of the four dominating cell phone companies, and examining the difference between the companies of AT&T and T-mobile, a big difference is the cost of their plans. Costumers with T-mobile pay much less than those with AT&T for the same coverage, so knowing what will happen with these customers is still unknown. With AT&T having the in-demand phone (Iphone), more network coverage, and less competition, who knows what is ahead for the future of the company and their customers.
http://www.huffingtonpost.com/art-brodsky/how-att-figures-it-will-d_b_841028.html
Do you think that because AT&T bought T-Mobile that it will have a huge change in our economy? I think that the current T-Mobile customers wont want to pay for the AT&T service if it is more expensive. If they don't want to be apart of that network they will switch to different networks offering a better price, and if this happens I think it will benefit our economy because other networks will gain more customers, which in turn will put more money into our economy. With AT&T gaining more coverage by acquiring T-Mobile they will also gain more customers who want a faster network. These customers will want the new Iphone and will be more attracted to it than other smart phones, because it will be as fast as those or faster. The big deal with AT&T in the past was if it could handle all the new customers that were attracted by the Iphone, and they couldn’t handle them. The network became very slow and that is why they bought T-Mobile, to have access to more cell towers, which will improve their coverage and improve their speed. So with AT&T doing all of this will it really change our economy that much?
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