AT&T Just Keeps Growing…
We're all aware of AT&T trying to buy T-Mobile, but many of us may not be aware of what else AT&T is trying to buy up.
Apparently AT&T has been in the market for local cell phone companies for a while now. Behind the scenes they have been slowly buying up different corporations. AT&T plans to buy out the minority stakes in a couple of Cincinnati wireless companies to the tune of $320 million cash.
The two companies AT&T is looking to purchase were splinters off of Cincinnati Bell. These companies split from Bell in 1998. AT&T holds roughly 55% of these two companies and manages their daily routines and such.
If the sale of the minority stakes of these two companies goes through, it will generate after-tax profits of $250 million for those selling the shares. It is believed that the sale will go through sometime in early July because there is no approval needed as AT&T is already the main partner.
Here is the question that plagues my mind….Is this just the beginning? If AT&T continues to buy up all the competition, will the FCC stop them? Or are consumers going to be left with one or two choices of cell phone carriers that will be able to jack prices way up for the simple fact of they can. As an AT&T customer, I'm worried about what this might be for the future of all cell phone companies.
Source: Fierce Wireless
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Is this bad?
It’s only bad if there’s only one company to go to. But the only major national companies left are Verizon, Sprint, and At&T. I’d be concerned if one of them got bought out.
There’s also US Cellular, aren’t they #5? Then MetroPCS is still around too, for now.
My guess is that as long as there’s 3-4 major players that the FCC will let the smaller companies get bought out. Running a cell company takes more money and more work than the old phone companies that were split up. It takes more money too.
Competition is good, but even when one carrier lowers their prices, the bigger ones don’t always follow. T-Mobile and Sprint are still more of the “budget” carriers with cheaper data and plans than Verizon and At&t, but those big two don’t seem to care.
Did they not learn their lesson from the last time the trust-busters broke At&t apart?
I really hope AT&T really grows, Verizon is the only company with really good nation wide coverage and you pay for that. I would like to see AT&T compete side to side with Verizon because right now, it can’t.
They are stupid, once they get too big they get broken up again and a new rebuilding cycle starts all over again. Its like they refuse to learn from the past.
They also bought my local carrier Cell-one in central cali about 6 months ago. Lemme tell you the local regional carriers had better coverage and limited phones/services… with Att buying them the coverage got a whole lot better and phones and services are able to take advantage of this. Which in this market put them over the top of verizon in speed and coverage imho!
At&t sucks and so does Verizon with their overpriced plans. I would hate to see att and Verizon be the only carriers. You think gas is high.