Monopoly: Every Business’s Dream And Every Customer’s Nightmare

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pic magazine 7015 2019-08-19

Any business owner desires to see their company thrive and succeed. What business owner wouldn't want their company to be on the level of Wal-Mart or McDonald's? But what does that mean when the company gains the financial means to buy out its competitors? With no competition to help regulate product pricing large companies can control the market regardless of supply and demand. And while this could be a good thing for the company and its employees, the rest of the consumer market would be susceptible to predatory pricing, exclusive dealing, price discrimination, tying contracts, and refusing to supply an essential product or service.

T-Mobile and Sprint - Merger

There are many laws, such as the American Sherman Antitrust Act of 1890, that make monopolization illegal. Recently two telecommunication giants, T-Mobile and Sprint, had their $26.5 billion merger approved by the Department of Justice. But both companies still have antitrust trials in their near future.

Oregon's Attorney General Ellen Rosenblum and Texas' Attorney General Ken Paxton are the latest in a long line of people actively opposing the merger. The District of Columbia along with 15 states are looking to derail the merger that would join the 3rd and 4th largest telecommunication companies in the United States. The reasoning behind this is that many believe the merger will raise costs of telecommunications throughout the United States thereby greatly limiting quality service affordability. The trail is currently set to commence on December 9th.

The current estimates of the suspected price increase is somewhere in the neighborhood of $4.5 billion a year. Quite a substantial sum. It is easy to see where this could possibly lead. With less competition Americans could see their phone bills increase enough to make an impact on their daily lives. The merger would bring the combined companies customer base to about 126 million. Rivals AT&T stands at about 141 million subscribers and Verizon at about 150 million. The upside of the merger is an improvement to 5G performance promising faster speeds and more reliable connectivity. But as stated above this will come at a cost to the consumer due to the necessary research and development needed to make those promises a reality.

Another concern for current Sprint and T-Mobile customers is concessions that are required for the merger to take place. One such concession is that T-Mobile must sell off many of its assets including a good number of its store outlets and Boost Mobile to DISH. Not only that T-Mobile must let DISH access their network for 7 years while DISH build their own version of a 5G network. This could cause security issues as the companies' software could conflict with one another.

It is up to each and every consumer to make the best choice for their needs. Do your research and make sure you have what is best for you and your family. As of now we can only wait and see what the benefits and disadvantages will come of the merger.

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