Home > Market Research > Mobile Strategies > In-Stant Analysis: AT&T’s Purchase of BellSouth: A Game of Scale, Not Monopoly

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Management Report
Published: March 2006
Pages: 3
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 647.50   Buy Now!
Research from: In-Stat
Sector: Mobile Strategies

AT&T's plan to acquire BellSouth reflects the industry's continued consolidation. This In-Stant Analysis argues that while the move will increase AT&T's market shares in key segments and enable it to compete more effectively in emerging markets it won’t raise the specter of monopoly power.

Indeed, the report provides data from In-Stat's 2006 Consumer Broadband Survey of 1,200 US households showing the leadership and growing adoption of VoIP providers such as Vonage, Yahoo!, Skype and other emerging competitors.

Still there are implications. For example, these same new VoIP entrants may be threatened if the new AT&T implements Internet network access fees. Likewise the cable companies can expect downward pricing pressure on their cable modem services. The report also highlights potential winners such as Alcatel, which has been a key supplier of telco TV infrastructure to AT&T.

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