Friday, September 27, 2013

AT&T's Stephenson Says Open to European Acquisitions


 (September 24) AT&T's CEO Stephenson said that the company was open to start business with European companies. That means that the company wants to expand its market share and revenues consequently, by acquiring European telecommunication companies. Such desire was ignited by the recent 130 billion dollar deal between Vodafone and Verizon Communications according to which the latter get 45% of the two companies' joint project – Verizon Wireless (Gryta and Knutson).

The thing is that Verizon is one of the four American telecommunication providers which now expanded its activity to Europe. AT&T tried to buy T-Mobile, but the U.S. Justice Department decided that such acquisition would eventually lead to monopolization of telecommunication market and forbade the above mentioned merge. Being unable to increase its influence at home AT&T decided to focus on the European market. However, there are some obstacles with spectrum licenses for instance, because in Europe such licenses could be obtained only for 10 years or so. That means that any telecom company would have to compete for those licenses every decade not to mention additional expenditures connected with that process.
I have got interested in this topic because lives of common people both in the U.S. And Europe heavily depend on telecom services. Today, we use it all the time and mostly – for entertainment. With the growth of smartphones' market and the enhanced possibilities of such and the like devices – any merge of big enough telecom company can directly reflect on the quality and price of respective services. Moreover, even standards could be affected in such a way and users would have to upgrade or change at all their “outdated” devices because of such a  reason. One should also bear in mind that no small company can handle the challenges of such a scale and due to that aspect, the entire industry is moving towards complete monopolization. That is why governments should jointly come up with respective regulations to prevent that from happening.





Works Cited
Gryta, Thomas, and Ryan Knutson. "AT&T's Stephenson Says Open to European Acquisitions." The Wall Street Journal. Web. 25 Sep 2013. <http://online.wsj.com/article/SB10001424052702303983904579094970829684140.html>.


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