The independent student news site of San Marcos, California

The Cougar Chronicle

The independent student news site of San Marcos, California

The Cougar Chronicle

The independent student news site of San Marcos, California

The Cougar Chronicle

TO MERGE OR NOT TO MERGE?

MELISSA MARTINEZ
PRIDE STAFF WRITER

Lately, the news about AT&T buying out T-Mobile has raised many questions and concerns for everyone, including those not affiliated with the two companies. Since AT&T announced its plan for buying T-Mobile for $39 billion, controversy has risen to whether this deal is ethical or not. AT&T’s empty promises proposed new jobs, however, T-Mobile subscribers would be forced to pay higher prices for lower quality. The main complaint that the Justice Department argued is that with the merge between AT&T and T-Mobile, the number two and number four top cellular phone companies would damage the competition. The Justice Department filed a lawsuit following the announcement of the merger because the combination of both companies will create unfair prices.

According to the United States Department of Justice, Attorney General, James M. Cole stated,“The department filed its lawsuit because we believe the combination of AT&T and TMobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services” in a news conference (www.justice.gov).

Since the new deal is only temporary benefitting AT&T, the chances of AT&T winning the ability to merge the two companies remains low since the Justice Department currently holds authority. However, if AT&T is allowed to combine with T-Mobile, its chances of becoming the largest wireless service in the nation is promising for the company.

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