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  • Essay / T-Mobile and AT&T merger - 1863

    For months, the prospect of a T-Mobile and AT&T merger has become more public. Prolonged merger discussions have left the public wondering whether the acquisition would allow AT&T to completely dominate the telecommunications market, leaving Verizon and Sprint in the dust. Mobile subscribers have been left uncertain over the shocking announcement, wondering how their pockets and cellular services will be affected. With lawsuits filed by both the Department of Justice and Sprint, the future of the acquisition is unclear. AT&T remains true to its history of fair dealing, publishing the following in its Code of Ethics: AT&T does not seek competitive advantage through illegal or unethical business practices, which means that no employee, officer or director should take unfair advantage of anyone, including customers, suppliers and competitors, through manipulation, concealment, abuse of inside information, misrepresentation of material facts or unfair business practices. (“Corporate Governance,” 2011) With the significant possibility that the merger would give AT&T the ability to monopolize, it appears that the company has lost sight of its code of maintaining fair competition. American businesses are protected by pro-competition legislation, including antitrust laws passed to prohibit monopolies. As outlined in the Sherman Antitrust Act of 1890, it is illegal for corporations to hold a high concentration of economic power. AT&T is no stranger to manipulating this federal law in order to gain an unfair advantage, according to the Federal Communications Commission. During the 1980s, AT&T made its name by virtually dominating its industry, an unfair competitive advantage that contradicted its code of ethics. However, the company...... middle of paper ......011, August 22). Deepening AT&T-T-Mobile Merger: How Will It Really Impact Wireless Competition? Connected planet. Retrieved from Factiva. Kellner, M. (October 27, 2011). T-Mobile's pitch: Take our smartphones, please. The Washington Times. Retrieved from Factiva.Malik, O. (March 20, 2011). In the AT&T and T-Mobile merger, everyone loses. Retrieved from http://gigaom.com/2011/03/20/in-att-t-mobile-merger-everybody-loses/McCracken, H. (2011, March 20). A brief history of the rise and fall of telephone competition in the United States, 1982-2011. Retrieved from http://technologizer.com/2011/03/20/att-buys-t-mobile/Sorkin, A. (2011, March 21). AT&T reaches deal to buy T-Mobile for $39 billion. The New York Times. Extract from Factiva. Thillien, D. (November 3, 2011). Judge rules Sprint can sue AT&T for merger. ITS daily Global Insight analysis. Retrieved from Factiva.