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FINANCIAL STRATEGY: MERGER WITH TIME WARNER CABLE
Merging companies would greatly increase the revenue of any company due to their collaboration, but bigger companies would have to be aware of consequences if they overstep their boundaries with the law. AT&T Inc. seeks to buy Time Warner for $85.4 billion on October 25, 2016. AT&T Inc. decided to take precautions in the outlining of their deal due to their prior pay out of billions of dollars to the government when their deal with T-Mobile failed; however, they would only need to pay $500 million if AT&T Inc.’s deal with Time Warner fails. (Kendall, 2016)
However, the Federal Trade Commission regulates deals between companies to prevent a monopoly form forming. AT&T Inc. mergence with Time Warner also is facing scrutiny with the president. Trump believes that AT&T Inc. and Time Warner and violating antitrust laws by merging, thus has been opposing it since their announcement. He wants to block it by implementing a Federal Trade Commission candidate that support his position by preventing AT&T Inc. from turning into a monopoly. (Kendall, 2017)
The merging of two companies would greatly benefit the consumers due to the cut in prices. On April 22, 2017 AT&T Inc. announces their plan to purchase Time Warner Cable, which would benefit the customers and mergers themselves. They are able to reduce their prices once they merge and compete with other carriers, such as T-Mobile’s unlimited data plan repelling customers away from AT&T Inc. (Fitzgerald, 2017)
MARKETING STRATEGY: EXPANSION OF SERVICE
When a company upgrades its services, it is a chance to display that they are not only responding to consumer needs, but also to let customers know that their services are potentially better than its competitors. AT&T Inc. has decided to expand 5G services to more metropolitan areas across the nation, by the end of 2017. The 1 Gbps service reach 4.6 million locations and is expected to increase by 2 million. It is predicted that by 2019, the DIRECTV’s acquisition will improve customers’ network by serving 12.5 million different locations. (Buckley, 2017)
CONCLUSION
AT&T Inc. will continue to advance with most of these strategies in the future. Even though they have learned to evade laws that would impede on their growth, they will still have to face controversy with antitrust laws whenever they want to reduce competition. Nevertheless, AT&T Inc.’s profit will continue to grow due to their implementation of different strategies.
