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For the past few years there have been tons of telecommunications mergers.U.S. antitrust authorities let AT&T and BellSouth to move forward with their $67 billion merger. For the past few years Thomas Barnett, assistant attorney general in charge of the antitrust division claims that the “proposed transaction is not likely to reduce competition substantially” and states that the “merger would likely result in cost savings and other efficiencies that should benefit consumers”.
AT&T Chairman and CEO Edward Whitacre explains the merger will “benefit customers through new services and expanded service capabilities”. Their focus is providing great service and innovative, competitively priced products for consumers and businesses throughout the nation and world. They also claim that the merger gives military and national security agencies a reliable U.S. based provider of secure, high-quality services.
Critics obviously opposed the merger saying it will reduce competition, limit customer choice and eventually lead to price increases. AT&T will have way to much power that the company might abuse by disregarding customer privacy barriers and limiting the type of traffic that crosses its networks. These risks are there because the merger would create the largest phone company in the US. Andrew Schwartzman, CEO of nonprofit law firm Media Access Project, says “AT&T, with the help of a complicit government, is poised to control nearly half of the nation’s phone lines and will also be the largest wireless and broadband Internet company in the country. If consumers thought gas prices were out of control, wait until they get their next phone bill!”