Things to Watch Out for When Your Telecommunications Company Merges

Things to Watch Out for When Your Telecommunications Company Merges

It seems like we are constantly getting news of mergers and acquisitions within the telecommunications industry. What does this consolidation trend within the industry mean for you,the consumer? Here are some things to look out for when your telecommunications company merges with another company.

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Updated 02/18/2020

February 18, 2020

Quick update on the article below.  It looks all is certain that T-Mobile and Sprint will join.  Directv as a brand is almost dead as it is now called AT&T tv.  Spectrum acquired Time Warner and Brighthouse cable and ran into some issues with the merger that lead to a lesser than desirable customer experience.  Acquisitions and mergers of the big high-speed internet providers is inevitable.  As television is no longer the main service for these companies and they are much more focused on how they can provide you access to the internet.  AT&T for instance continues the push to be a total solutions providers bundling their customers home security, internet, mobile phones, home landline phones, television and one day streaming options.   Spectrum is now getting into the mobile phone territory and it is almost a certainty the Sprint/T-mobile merger will bring about even more streaming entertainment options.  As much as we all want to cut the cord, the fact remains you will still be tied to the cord or the invisible cord (mobile 5g internet) and you will need to decide which provider you will use to access the internet.  Fortunately with konecteaze handy zip code look up tool CLICK HERE we can help you navigate your internet provider options including internet pricing, packages, speed and deals.  So wether you are looking to bundle or unbundle, Konecteaze will help you every step of the way.  

AT&T acquired DIRECTV.  Charter merged with Time Warner.  T-Mobile is trying to merge with Sprint.  Small local providers get bought out by larger companies.  It seems like we are constantly getting news of mergers and acquisitions within the telecommunications industry.  What does this consolidation trend within the industry mean for you, the consumer?  Here are some things to look out for when your telecommunications company merges with another company.

Rate Changes

Prices go up.  Of course, they do.  Let’s keep it real.  Take the recently announced merger deal between T-Mobile and Sprint for example.  T-Mobile assures us that rates won't change.  These assurances may help the deal get approved by regulators, and initially, rates probably won’t go up.  They may even go down some.  Initially.  You may even get grandfathered in at old rates.  But, what happens when price promotions expire and new rates become normalized?  Costs get passed down to consumers.  Investors will undoubtedly put pressure on the companies to increase profits.  Your bill goes up.

Billing Errors

When two telecommunications companies merge, sometimes the two different billing platforms don’t reconcile without some hiccups.  Some common billing errors include being charged for disconnected or obsolete services and getting charged for a different customer’s service.  It happens!  Coding and labeling issues may arise.  Account representatives who are under pressure to learn the new system may overlook such errors.

Service Quality Change

In every merger, there is a transition period where network maintenance must occur.  Providers may overlook certain geographic areas as they spend more attention improving networks in locations deemed more profitable.

Innovation and New Deals

I don’t want to completely blast mergers and acquisitions.  It’s not all doom-and-gloom for consumers.  A lot of good things come out of these major business deals.  For instance, one of the primary reasons for the T-Mobile and Sprint merger is to pool resources to advance 5G technology.  Ultimately, these deals benefit consumers and result in better service, more advanced technology, and cool new packages. Check to see what exciting deals providers offer in your area.