Thursday, December 09, 2004

Cingular and AT&T Combine

There had been rumors circulating about the merger of Cingular and AT&T. Obviously, I would be slightly interested because I am an AT&T wireless customer. One day a couple weeks ago, I received a letter and a large pamphlet in the mail. The letter told me that nothing had changed on my account and that the merger was complete. The large pamphlet told all about what Cingular and AT&T customers now receive and then all the new phones and great offers you can switch to for extra money. I am satisfied with what I have, but just out of curiosity I visited their web site(attached) and clicked on "I am an AT&T Wireless customer". First I learned that I now have access to the Cingular Allover Network, which is supposed to give me better coverage, because it's a bigger network. I also have unlimited mobile to mobile, which is the largest network of 46 million customers and I am eligible for Cingular's rollover minutes to name a few changes. Now all of this stuff sounds wonderful but I have always been a bit skeptical. As I read further, I found out that if I want all these new great things, all I have to do is call and change my plan. I am sure that would increase my payments. As I have learned in Econ all these recent mergers could be a negative thing for consumers. Sure this sounds like a great thing now, but what about in the long run. If they begin to monopolize the market, then what? In a few months will my bill go up a few dollars. No doubt, if it did they would claim it would be for my benefit. So they could offer more wonderful services. What do you think? Do you believe that customers will benefit from this merger or not? I guess time will tell for sure.

5 comments:

Laurel Lindamood said...

I am also very interested in this merger because I am an AT&T customer, as well. I think the biggest benefit of this merger is providing all cingular and att customers with a supposedly huge network, the biggest network of all the cellular companies. To me, that is a good thing because who wouldn't want to be able to use their cell phone practically anywhere? I guess there are other benefits, but those come with a cost. In order to get some of the services that were only for cingular customers, you have to pay the price because we all know there aint no such thing as a free lunch. One problem I envision for this area of the state is we didn't have cingular before, so our calling area around here isn't going to get any bigger. I also think the monopoly thing could be a big issue because this company is huge now and what will stop it from eating up some more competition?

Casey said...

When I first heard about this merger through television commercials, I became very interested because I am a recently new AT&T customer. I think, possibly, the most beneficial part of this merger would be the better coverage. I am able to call any AT&T customer while I am in the AT&T wireless network. I am curious as to whether I can call them even when I am not in their area now. Back home is completely Cellular One area and I would love to know if that has changed; I'll have to wait until Christmas break though. If it works, to me, it will have been one sucessful merger!

amy said...

As an AT&T user, I have already began to notice the difference in my service. I am able to get connections in places that it was currently unavailable to me before. The merger has obviously created a more convienient market for cell phone users and not to mention has turned AT&T and Cingular into an extremely large service area. There is no doubt that this merger will eventually create some monopolist traits, so really it just comes down to rather or not a few more dollars a month for all the additional features is worth it or not. If not, there are plenty of other cell phone companies out there looking for new customers and are willing to offer lower more competitive prices, which I would say would balance the market economy in cell phones.

Justin Duthie said...

As many of the previous posters, I am an ATT Wireless customer as well. From day one, I have been watching the offers and the eventual merger of these two companies.

It does seem "too good to be true" however, many small thing do not really give these added benefits to customers right away. As mentioned, the largest thing is you must renew your contract with them. A few years ago, this would mean a term of one year...but now it has progressed to a two-year term. Personally, I see this as the hook for all ATT customers. People with say 14 months left on their contract are now going to be hooked indirectly to renew their contract with Cingular.

The one problem I have with this is that I have been a loyal customer with ATT for 9 years now. Each time my phone breaks, or I have a billing inquiry that is not resolved, I simply remind them of my solid history. If this does not prove to be successful, I then simply say I would be interested in canceling my contract, and what are the costs involved. Each time, this has been the key phrase. With this new merger, I doubt that Cingular will recognize or much less car about my history with the company THEY bought out! For now, I'm sticking with ATT, my bills are low, and my phone works great....for now...

alipost3 said...

I was an AT&T wireless customer for 2 years when I was told that there would be a merger with Cingular. I wanted a new phone, as well as the "rollover" minutes that Cingular offers. I switched my plan for an upgrade fee of $18 to become a Cingular customer. I gained 50 anytime minutes, a larger coverage area, and from my experience so far a better overall signal. I suppose it just varies from person to person as far as what plan fits you. I am happy with my decision to switch to Cingular.