AT&T buyout of BellSouth - Another benefit besides synergy
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AT&T recently bought out Bell South. In doing so, it gains 100% ownership of Cingular. Cingular was a 60/40 joint venture between AT&T and Bell South. There are obvious synergies (read lay people off) and additional cost savings by rebranding Cingular to AT&T. Well here’s another benefit I was unaware of. You are paying for subsidies for high-cost landline markets. Given these wires were laid decades ago, one has to wonder if this is really a super-profit the telecoms are receiving at you the wireless customer’s expense. I suspect it would be cheaper to just give everyone a Motorola Razr and free cellphone service than to pay these subsidies. I haven’t found the statistics yet, but once I do I will update this post with that cost/benefit. Unfortunately I don’t have a group of lobbyists supporting the cause. If you are a lawyer and work for free give me a call.
