Tuesday, March 22, 2011

And Our Choices Just Got Even More Limited

AT&T is buying T-Mobile. We’re going to go from four companies with national coverage to two. That is not good for customers or for the business. And I’m not the only one who thinks so.

From the story –
The effect of reduced competition in the cellphone industry is harder to fathom. Public interest group Public Knowledge said that eliminating one of the four national phone carriers would be "unthinkable."

"We know the results of arrangements like this -- higher prices, fewer choices, less innovation," said Public Knowledge president Gigi Sohn, in a statement.

T-Mobile has relatively cheap service plans compared with AT&T, particularly when comparing the kind that don't come with a two-year contract. AT&T CEO Randall Stephenson said one of the goals of the acquisition would be to move T-Mobile customers to smart phones, which have higher monthly fees. AT&T "will look hard" at keeping T-Mobile's no-contract plans, he said.
The more that these massive companies consolidate, the worse off the American people will be.

No comments: