Wednesday, April 27, 2011

AT&T & T-Mobile Duopoly Raising Prices

The 5 Major Cell Phone Companies
In past years, cell phone companies have competed intensely for consumer usage. With major companies including T-Mobile, AT&T, Verizon, Alltel, and lastly Sprint sparring for the leading position in sales. However, by the looks of it AT&T will soon be the head honcho in the phone market due to the duopoly between them and T-Mobile which is most likely soon to occur. According to International Business Times if the duopoly were to occur, AT&T would control 80% of the market and have somewhere near 2 million subscribers. The risk for consumers with this duopoly is the fact that T-Mobile was known for being the least expensive phone company of them all, so when they are bought by AT&T, the cheap prices of T-Mobile will be no more. However Sprint is doing what it can to convince regulators do not allow this merge, saying "This transaction will harm consumers and harm competition at a time when this country can least afford it" according to CED Magazine. It will be interesting to see what the future holds for the cell phone market.
Article about merge of AT&T and T-Mobile
Sprints words on the merge of AT&T and T-Mobile

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