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Why We're Oh So Happy AT&T and T-Mobile Aren't Merging

Authored by: Steven Blum — Dec 20, 2011

Today is a good day for American consumers.

As of today, it seems AT&T has completely given up on its plans to buy out T-Mobile. The merger was killed after it was put under incredible security by both government and consumer watchdog groups. Ultimately, the failure of the merger is going to cost AT&T at least $4 billion.

The merger plans, which would have created an insane monopoly, were put through the ringer by both the FCC and DOJ. Even well-known senators like Herb Kohl argued on behalf of potential customers.

Chief among their concerns was the fact that the deal would stifle competition and hurt innovation. The merger would have put a whopping 80% of all cell phone contracts in the hands of AT&T and Verizon, leaving just Sprint and a handful of regional carriers as competition. Furthermore, without the smartphones of the big boys, these carriers wouldn't have been able to compete. Fewer phones on the market = less innovation = bad for consumers.

We're oh-so-glad that government agencies and consumer watchdog groups actually did their jobs to prevent a AT&T-Verizon duopoly.

Source: Engadget

Steven Blum has written more than 2,000 blog posts as a founding member of AndroidPIT's English editorial team. A graduate of the University of Washington, Steven Blum also studied Journalism at George Washington University in Washington D.C. for two years. Since then, his writing has appeared in The Stranger, The Seattle P-I, Blackbook Magazine and Venture Villlage. He loves the HTC One and hopes the company behind it still exists in a few years.

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  • CJ Brown Feb 28, 2012 Link to comment

    Agreed - & I'm so glad I left AT&T in 2010 (sure I joined AT&T 5 years ago after 9 years with Sprint was shot to hell over poor Customer Service, guess what? AT&T drove me to Verizon Wireless & as a consumer I want that option of more Carriers to choose from in case one decides they can get a better deal some place else) ...

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