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AT&T, Cingular Wireless Merger Could Lead to
Higher Prices, Poorer Services
Today’s proposed merger between Cingular Wireless – which is owned
by two of the largest Bell local telephone companies
– and AT&T Wireless points to a dangerous consolidation trend
that ultimately could lead to higher prices and poorer service for
cell phone customers, Consumers Union warns.
"This deal is a lose-lose proposition for consumers," said
Chris Murray, legislative counsel for Consumers Union, publisher of
Consumer Reports. "With number portability, cell phone companies
have begun to offer better deals to consumers who now have more freedom
of choice. A move toward greater consolidation cuts at the heart of
this growing competition in the telephone marketplace. We can expect
to see fewer deals and higher prices, just as we've seen with the
mergers of cable companies."
Added Murray, "Competition from the wireless industry in some
cases has helped keep rates down for long distance and one day could
be a strong competitor for local phone service. This merger will limit
this growing competitive pressure."
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