AT&T and BellSouth merger Essay Example | Topics and Well Written Essays - 1000 words

AT&T and BellSouth merger - Essay ExampleAT&T and Bellsouth are the two of the worlds giant telecommunication company. According to Mark del Bianco, a Communications Attorney who wrote Bumps in the road for AT&T-BellSouth merger, both BellSouth and AT&T own considerable chunks of prime wireless spectrum that is unused and that could quickly and comparatively cheaply be used to provide broadband services that would compete with telecom and cable wire stress broadband services--in other words, the long-sought third pipe to the home or business.The merging of these two companies will give AT&T and BellSouth an edge over their competitors, and in this case, as Atty. Mark del Bianco have written, competitors will no incertitude argue that the Federal Communications Commission and the Justice Department should worry about the loss of inter-modal competition that will result if the two companies are permitted to confine this valuable spectrum.While AT&T, being the largest phone company, b ought BellSouth, of which, being the 3rd largest phone company, this reduced the phone company into 2 large players and consumers are familiarisely alarmed because the constant merging of companies gives them fewer choices, of which case, these companies can immediately shoot up their prices. The proposed merger of AT&T and BellSouth means the death of the Internet and the expose of fictional competition between telecom companies, charged two Washington, DC-based consumer groups. The Consumer Federation of America and the Consumer Union urged regulators to reject the $67 billion proposal. (Ed Sutherland, 2006)While the plan gives AT&T to kill the Internet so that they can cableize the Internet connection, Sutherland quoted Gene Kimmelman, Consumer Union vice president for federal official and international affairs, which saidCongress and federal regulators need to look carefully at the lifeless competition their flawed policies have created and reject this merger.Cross parcel ou ting Through the merger the companies become enable to sell their products to the customers of the other company. The natural combination of two leading wire line providers and joint owners of Singular speeds progress in integrated wireless/wire line services will improve the services provided to the customers.Financial Benefits The merger of both the companies will lead to a financial benefits for stockholders of both companies an expected net present value of $18 billion in synergies resulting from a more than $2 billion annual run rate in synergies expected in 2008, evolution to $3 billion in 2010 (BellSouth Media Room). On the other hand the expected merger will lead to accrete AT&T