Economics Questions

Re: Thoughts on AT&T/T-Mobile Merger

Wibee — Thu, 31 Mar 2011 03:35:04 GMT

AT&T better not screw with my 1 year expiration date on my prepaid tmobile phone.

Re: Thoughts on AT&T/T-Mobile Merger

xahrx — Thu, 31 Mar 2011 02:56:42 GMT

"What are everyone's thoughts on the much hyped potential merger of AT&T and T-Mobile?"

In principle the merger is no one's business. I'd say it should be allowed, but that would imply a right on the part of the state to disallow, which there isn't. Suffice it to say, two companies want to merge, best of luck to them should be the long and short of anyone's thoughts on it.

In practice the industry is regulated. In an unscrewed with market it's no one's business because no one has to buy their services pre or post merger. Who knows what choices regulation has forced or robbed people of in the interim though? It would be impossible to say no one is getting screwed against their will via their merger. The answer to that issue is to get rid of the regs though, not try to plan around their intended and unintended consequences.

Re: Thoughts on AT&T/T-Mobile Merger

WallStreetAce — Thu, 31 Mar 2011 02:28:06 GMT

Just fyi, I'm not agreeing with any of the anti-market statements being brought forth by the statist ideologues in the media etc. I agree with you guys, and just wanted to discuss it. I'll reply in full later, as I'm busy with a school project right now.

Re: Thoughts on AT&T/T-Mobile Merger

DanielMuff — Thu, 31 Mar 2011 02:19:04 GMT

WallStreetAce:

[...]

Also, what do you guys make of the claims that the new company would raise prices and lower the quality of service for things like 3G and the iPhone (since it' would be one of the sole distributors of them)? [...]

So what if the quality goes down? Should broom makers only make titanium brooms that don't break but are very expensive, or should they also make plastic brooms that last a month but a very cheap in price and, thus, fall into the price range of the poor?

Re: Thoughts on AT&T/T-Mobile Merger

Phaedros — Thu, 31 Mar 2011 01:55:47 GMT

Are AT&T and T-Mobile the only possible providers of cell service? No, not at all. I mean fuck there's Skype now, which for some reason hardly anyone uses. (or maybe more people than I realize do use it). It's no business of Sprint's whether or not 2 other companies decide to merge or whatever. Sprint bringing in the government on this shows what douchebags they are.

Thoughts on AT&T/T-Mobile Merger

WallStreetAce — Thu, 31 Mar 2011 01:34:39 GMT

What are everyone's thoughts on the much hyped potential merger of AT&T and T-Mobile? I guess Sprint sent a letter to the Feds saying the following: "Sprint urges the United States government to block this anticompetitive acquisition. This transaction will harm consumers and harm competition at a time when this country can least afford it." My question would be, if competition is so important, than why don't they compete with the new company and capture customers by showing that their products are better, instead of whining to the government to give them a leg up on the competition.

Also, what do you guys make of the claims that the new company would raise prices and lower the quality of service for things like 3G and the iPhone (since it' would be one of the sole distributors of them)? I think the most prudent course of action be for the FTC to do nothing and allow the merger to go through. Sprint, Virgin Mobile and U.S. Cellular still exist. So it's not like the new company would have complete control of the industry. And even if it did, the market would fix the problem soon enough. I don't get why everyone has such a fear of supposed "oligopolies". Moreover, hasn't that fear been debunked numerous times by Austrian economists? Anyways, feel free to make known your thoughts. I'd like to discuss the matter from a free market, Austrian perspective.

WSA