AT&T to Lick Failed Merger Wounds with Higher Rates
Posted January 27, 2012 at 03:00 pm by Jase Glenn
Not so long ago, AT&T attempted to purchase wireless carrier T-Mobile from parent company Deutsche Telekom in March of 2011. Due to a variety of legal and ethical reasons this bid for market dominance was officially abandoned on December 19, 2011. A condition of this buyout was upon failure, AT&T would have to directly pay T-Mobile $3 billion cash, as well as another $1 billion in spectrum licenses. The result of this tragedy was AT&T posted a staggering $6.7 billion dollar loss for fourth quarter last year.
Who do you think has to pay for this? Apparently AT&T thinks the subscriber does, because less than a week ago they decided to raise their customer’s rates yet again. If your thinking of switching to AT&T the prices on all smartphone data packs have been raised by $5 per phone.
Five dollars not a lot you say? Let’s look at the numbers:
AT&T has 71 million subscribers currently. If each subscriber pays $5 dollars more AT&T will see an extra $355,000,000 in pure profit per year. It’s the equivalent to you failing all performance evaluations at work and then getting a raise. Not only does AT&T officially have the worst customer service, and far less 3G and 4G coverage than rival carrier Verizon, but now it has some of the highest plan rates to boot. What does the customer gain out of this? An extra 100MB on the lowest data plan, and an extra gigabyte on the most expensive.
Shame on you Mr. De la Vega; biting the hand that feeds you is never the right thing to do.
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