Question

After AT&T was split up by government litigation into a number of different entities (i.e., local phone companies, a long-distance phone company, and a phone equipment manufacturer), what was the impact on competition in the phone market?

Answer 1

Answer: See explanation below for answer.

Explanation: AT&T Inc. is an American multinational conglomerate holding company, with its headquarters at Whitacre Tower in Downtown Dallas, Texas.

The acronym AT&T stands for American Telephone and Telegragh. The company is known as the largest telecommunications company in the world, the largest provider of mobile telephone services in the United States, and it also provides the largest fixed telephone services in the United States through its subsidiary AT&T Communications.

A split up of such a company as large as this will result in an increase in competition which will lead to greater innovation by competitors, it will lead to more services, and it will further lower prices of products and services.

Answer 2

increase in competition leading to greater innovation, more services, and lower prices

Step-by-step explanation:

Based on the scenario being described within the question it can be said that the impact was an increase in competition leading to greater innovation, more services, and lower prices. This most likely happened because by not controlling all aspects of a market it gave room for other company's to compete in individual sectors of that market.