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AT&T takes to advertising to defend merger with T-Mobile July 15, 2011

Posted by rmshepard in Uncategorized.
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AT&T’s proposed merger with T-Mobile is controversial for sure – it would mean that just three companies would control just over 85% of the U.S. wireless market. With its merger up for approval, the company is launching a campaign to persuade Americans that they stand to gain from the new deal. The first TV ad claims that AT&T and T-Mobile will provide the best broadband experience available, especially for small towns and rural communities. Yet AT&T’s competition is not sure that the company will be competing fairly.

Although AT&T could be heading toward an unfair share of the wireless market, there are some analysts who believe that giant mergers are just what is needed to stimulate the economy in hard times. With their capital, AT&T could open more offices, develop better technology, and create large infrastructure projects. Despite that belief, the company faces more skeptics as approval of the deal is pending.

To see AT&T’s first attempt to persuade the public that the deal is good for America, watch the following video:

Discussion Questions:

1.  Why would AT&T need to persuade the public that a merger is beneficial for all? Why do Americans care about corporate mergers?

2.  Is the AT&T and T-Mobile merger really that worrisome?

3.  Is the advertisement above sufficient in creating a good defense of the merger? Why, or why not?

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