A Discussion About 1974 Monopoly Court Case Against At&t Company: [Essay Example], 825 words GradesFixer
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A Discussion About 1974 Monopoly Court Case Against At&T Company

  • Category: Business
  • Subcategory: Corporation
  • Topic: At&T
  • Pages: 2
  • Words: 825
  • Published: 08 August 2019
  • Downloads: 35
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A case was made against the company (telecommunication monopoly) otherwise known as AT&T in 1974. Consequently, after four attorney generals, a lawsuit was finalized to dissolve the monopoly. As a result, the courts ,Attorney General and, “AT&T agreed to be broken into seven different companies with each being responsible for serving a different region of the country” (Infamous Antitrust Cases AT&T. (2014). However, overtime, 5 of these7 companies, (not including Verizon and Qwest) have “remerged” with their parent company known as “Ma Blue” (AT&T).This was an historic case because, up until this time, AT&T had close relations with the government, as it was also a government -supportedMonopoly. Unfortunately, this relationship ended when “the communications giant lost its government backing in the 1980s when charges were filed against it under the Sherman Antitrust Act” (Beattie, A. (2009). After the dispersing of “Ma Bell (theOriginal AT&T) was complete, the Baby Bells” began to directly compete with one another, eventually consolidating assets and companies, after the government eased laws regarding corporate monopolies and enforcement regulations.

With regards to AT&T acquiring T-Mobile, it is safe to say that the consequences will be far reaching and will not only affect the telecommunications industry but also the way people use cell phone service (technology) in general. Furthermore, the merger of T Mobile with AT&T in the long term could prove tobe devastating to customers across the board, asthe consolidation and effective reconstitution of AT&T has the potential to “substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices as well as poorer quality services” (Justice.gov. (2011, August 31). It should be noted that these are just two noteworthy consequences of the potential merger of these two companies (innovation and well as creatively would also be stiffen due to the merger).Likewise, the reunion of the “Baby Bells” under the helm of the reestablished AT&T brand will do much to eliminate potential “up and coming” competition as well as alienate the rest of the telecommunication market their by rendering their competition impotent against the telecommunication giant. As a result, more and more small, independent, merging and new telecommunications companies and perhaps even future applications and other technological services can and will also be monopolized by AT&T or a similar corporation whom has the backing (funding),as well as influence, skill set, and talent to do such.

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Personally I believe that monopolizes should be avoided at any and all costs simply because it, goes against the concept of “free markets” as well as Capitalism. With regards to the AT&T brand as a monopoly (corporation), they were only able to expand, as well as gain influence and power simply because, the United States federal government viewed AT&T as essential for the “security” of the American telecommunication infrastructure at the turn of the past 20th century, thus made no effort to “breakup” the entity due to politics, the importance of social/governmentdependence on telecommunications and thus did not impose the Sherman Act on AT&T the first time around (back in the 1920’s). Now times have changed and so has the telecommunications market as well as the interest of the people and government. Thus, I believe that it was (and still is ) in the best interest for the general public (consumers of America) for the AT&T brand name as well as the original “Blue Bells” to not be allowed to merge as one company.

Furthermore, to make an example of corporations in America, all monopolies should be disbanded , even if they have already faced and conquered such actions in the companies past (such as the Standard Oil breakup).This in turn would set the stage for a more flexible as well as highly diverse and open market.

In recent times, T mobile has been in the spotlight as AT&T seeks to purchase the company. This would be horrid for T mobile and the telecommunications business in general because, “Accordingto the complaint, AT&T and T-Mobile compete head to head nationwide, including in 97 of the nation’s largest 100 cellular marketing areas” (Justice.gov. (2011, August 31). Furthermore, the merger of these two competitors would effectively eliminate the sole competitor of AT&T(which is of course currently T Mobile communication brands). Furthermore, the symbolism of the act alone would speak miles in of itself and would indeed be a “historic moment” not only for the telecommunication’s industry, but also for corporate history and business in general. T mobile has earned its place amongst the telecommunication industry giants as it was the very first in the telecommunications businesses to offer its customers the “first hand free head set, Android Technology, Blackberry, wireless internet & email services, the sidekick cell phone, national Wi-Fi Hotspots, and flexible service plans as well as packages” (Justice.gov. (2011, August 31) Historically, T Mobile has always been “a firm that historically has been a value provider, offering particularly aggressive pricing” (Justice.gov. (2011, August 31) The article link to the case can be reviewed at https://www.justice.gov/opa/pr/justice-department-files-antitrust-lawsuit-block-att-s-acquisition-t-mobile.

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A Discussion About 1974 Monopoly Court Case Against At&t Company. (2019, August 08). GradesFixer. Retrieved May 7, 2021, from https://gradesfixer.com/free-essay-examples/a-discussion-about-1974-monopoly-court-case-against-att-company/
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