AT&T to buy BellSouth

I read a post on oligopolywatch.com about how AT&T is going to buy BellSouth. The $89 billion deal is said to be the 5th largest in U.S. history will create the largest telecommunications company in the world. The new company will be able to bundle many different services like internet, tv, land-lines and wireless. Will smaller companies be able to compete? Why aren't the antitrust regulators jumping all over this deal? It is believed that consumers will not be hurt by this deal because there are still many other telecommunications companies out there who can compete. Some of this companies provide the same services in different ways. For example, Vonage provides Voice over IP phone services via the internet. Also, there are many different types of internet connections. New technology is allowing consumers to connect to the internet via power lines. Soon power companies may be competing with AT&T in the ISP market.

1 comment:

Dr. Tufte said...

-1 on Noah's post for spelling errors.

The "new" AT&T is already involved in most of these business lines. So, they are not looking for economies of scope, but rather economies of scale.