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There have been several mergers of large firms within oligopolies.In this assignment, you are to assess the impact of those mergers, on industry, on consumers and on society as a whole. There are...

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There have been several mergers of large firms within oligopolies.In this assignment, you are to assess the impact of those mergers, on industry, on consumers and on society as a whole. There are three parts to the assignment.

  • First, you are to go to the Federal Trade Commission’s website at http://www.ftc.gov/bc/index.shtml and select one proposed merger for your paper.Then,in a group discussion board, present a complete description of the industry.
  • Second, in another group discussion board, present two arguments: Onein support of the merger and the other opposing the merger.
  • Finally, write a 2 page paper that contains the industry description, and the two arguments.
  • Set-up a group discussion board and post the following information.
Part 1) Industry Description:
  1. Describe the firms in the proposed merger. List their annual sales, and extent of their operations.
  2. From the firms' point of view, what are some of the incentives to consolidate?
  3. List and describe the firms in the industry.
  4. Describe the product, production methods, scale of production, andsources for raw materials. What technologies are used?
  5. Describe the competitive environment within the industry.Is there a dominant firm? Are the other firms follow or actively compete?How do they compete? (For example, byusing price, advertising, quality or some other variable.)

Report and interpret the 4 firm concentration ratio, the 8 firm concentration ratio and the HerfindahlHirschman

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Unit 5 Group Project Topic is on Cellular Phone Merger on ATT and Metro PCS I am against the issue Note(That me part of the assignment in the group)Group Mates: HYPERLINK "https://mycampus.aiu-online.com/Classroom/Pages/AssignmentDetail.aspx?>

Answered Same Day Dec 21, 2021

Solution

David answered on Dec 21 2021
137 Votes
T-mobile and Metro PCS Merge
Running Head: T-MOBILE AND METRO PCS MERGER
1
PAGE
4
T-MOBILE AND METRO PCS MERGER
T-mobile and Metro PCS Merge
Name
Institution
T-Mobile and Metro PCS Merge
Industry Description
Metro PCS and T-Mobile are two major companies within the telecommunications industry that are planning a merger worth $1.5 billion. In the year ended 2011, T-Mobile had a total revenue of $20.62 billion while Metro PCS had a total revenue of $4.43 billion in the same period. Metro PCS has over 9.3 million customers to whom they provide a wide a
ay of
oadband wireless mobile communication such as data services, voice services, customised calling features, as well as dealing in a number of advance feature handsets (Metro PCS, 2012; T-Mobile, 2012, p.13). On the other hand, T-mobile has over 33.3 million customers to who they provide a wide a
ay of integrate telecommunication products such as prepaid and fixed mobile and network services,
oadband data services and feature mobile phones.
For the two organisations, the core incentives to consolidate their operations is so as to expand their market base by combining their customer base, attain higher economies of scale due to reduced cost per unit, enjoy synergy profits from the merger, hold a dominant position in the U.S.A telecommunication market, as well as have greater control in determining market trends (Kang, 2012).Various rival firms with the US telecommunications industry which would be impacted by the merger include AT&T, Verizon Wireless, Leap wireless, and Sprint Nextel. These are the other largest companies in the industry. The merger of T-Mobile and Metro PCS will make the companies in the industry with a possible market of 30% in pre-paid industry and 13% in the wireless market (Kang, 2012, p.10).
From the products and services provided by the companies noted above, it can be noted that the organisations rely on wireless technology. T-mobile specifically relies on 3G and 4G wireless network technologies, while Metro PCS relies on CDMA and 4G wireless technologies. The industry is highly competitive with it having...
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