Telecom Industry the Total Business Term Paper

Wireless although the performance of Cingular has been mediocre also. The new Cingular expects that the added network coverage from at & T. Wireless will assist in opposing that belief nearly from the very beginning. (FCC OKs Cingular, at&T Wireless Merger)

The merger is regarding placing two companies in unison that do not have the metrics to go for the optimum services. Whereas there is scanty reservations regarding the amalgamation gives Cingular instruments to perk up customer satisfaction, the company has to proceed very speedily. Since in excess of 170 million subscribers are at present using a mobile phone in the United States, the phenomenal surge in the recent years is sure of slowing down. Meanwhile, the customers of at & T. Wireless has been deserting at the rate of 3.5% per month during 2004 which is worrying given that rivals Verizon and Nextel Comunications Inc. has been losing their subscribers at the rate of 1.5% per month. The total subscriber base of Cingular and at&T Wireless went up by 8, 25,000 during the third quarter for a total of 47.6 million. (FCC OKs Cingular, at&T Wireless Merger)

However, the divestures ordered by the Federal Communications along with the Justice Department will deduct about 3,50,000 customers, leaving Cingular with roughly 47.25 million subscribers. Verizon its direct competitor has been signing up as many as 1.5 million subscribers per quarter at a speed that would give it approximately 42 million subscribers at the end of September 2004. Till the time Cingular is being able to bridge the gap remarkably by roping in more fresh customers and retaining the old ones, the companies' leadership of nearly 5 million customers would go way very soon. For the present however, the rates will not be changing with both at&T and Cingular customers will keep their present calling tariffs and contracts even after the merger. (FCC OKs Cingular, at&T Wireless Merger)

References

Cingular, att Wireless merge after clearing last hurdle. October 26, 2004 Retrieved at http://economy.news.designerz.com/cingular-att-wireless-merge-after-clearing-last-hurdle.html. Accessed on 22 November, 2004.

Cingular Completes at&T Wireless Takeover. October 26, 2004. Retrieved at http://www.consumeraffairs.com/news04/cingular.html. Accessed on 22 November, 2004.

Consumers Will Pay Big for Cingular/at&T Merger, Study Warns. May 27, 2004 Retrieved from ttp:/ / www.consumeraffairs.com/news04/att_merger_phoenix.html. Accessed on 22 November, 2004.

Customer Benefits. 2004. Retrieved at http://www.newcingular.com/c_benefits.html. Accessed on 22 November, 2004.

Meyerson, Bruce. FCC OKs Cingular, at&T Wireless Merger. Associated Press. October 26, 2004. Retrieved from www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/11/01/BUGTK9HFFK1.DTL&type=business" http://sg.us.biz.yahoo.com/ap/041026/cingular_at_t_wireless_11.html. Accessed on 22 November, 2004.

P.R. Newswire. Retrieved at http://www.findarticles.com/p/articles/mi_m4PRN/is_2004_August_23/ai_n6166155Accessed on 22 November, 2004.

Sulivan, Kevin R; Spigel, Jeffrey S; Cohen, David a. Antitrust Scrutiny of Telecommunication Mergers, Joint Ventures and Strategic Alliances - a shift from Regulation to Enforcement. Retrieved at http://www.kslaw.com/library/articles.asp?16Accessed on 22 November, 2004.