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  • Essay / Natural Monopolies Essay - 772

    In 2005, Southern Bell purchased the old monopoly to create the AT&T we use today. On March 20, 2011, AT&T announced plans to purchase T-Mobile USA for $39 billion, but the purchase was declined. After numerous failed mergers, AT&T finally completed an acquisition of Direct TV while also striking a new deal with Time Warner. The merger faces regulatory review, with AT&T hoping to complete the acquisition before the end of 2017. AT&T purchased DirecTV last year to become the nation's largest cable or satellite TV provider. Once again, AT&T looks like a natural monopoly with the ability to lower prices at will to force smaller competitors out of business. Here's a chart to support my conclusions about AT&T's profitability over the past decade due to