Question: Competitive analysis question I 4. AT&T. [29 points] AT&T is one of ve major wireless communications service providers in the U.S. The number of subscribers
Competitive analysis question
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I 4. AT&T. [29 points] AT&T is one of ve major wireless communications service providers in the U.S. The number of subscribers for each rm is in the table below. Subscribers 140 130 B5 60 5 (in millions) (a) |Compute AT&T market's share in this market. Compute the HH] (measure of market concentration) for this market. (6 points) (b) In 2011 , AT&T offered $39 billion in a proposed buyout of T Mobile. Assuming subscribers (except TMobile customers who move to AT&T) do not change their service providers, what would be the I-Il-H of this market after the proposed merger? (4 points) (c) This merger was opposed both by the DO] and FCC and eventually abandoned. Should this result have been expected by AT&T? Explain using your answers from above. (4 points) In October of 2016, AT&T announced a $85 billion merger with Time Warner. Since DirgeTV is owned by AT&T and Time Warner is the owner of CNN and HBO among other movie and TV channels, this is considered to be a vertical merger. (d) Name one potential efciency gain that could result from this merger. What effect would this have on consumers? (5 points) (e) Name one potential and-competitive concern with this merger. What effect would this have on consumers? (5 points) AT&T is also proposing to allow subscribers access to a DrrecTV's streaming package for which they can watch Time Warner content on their mobile devices via AT&T's network without using data. (f) Despite the merger being approved, the DO] appealed to stop it. Do think the DOJ should also allow AT&T to offer this deal to their subscribers? Why or why not? You can use the result of the Comcast- NBCU case discussed in class to support your argument. (5 points)
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