Is Verizon owned by AT&T?
Operating out of the United States of America, Verizon and AT&T are both telecommunication companies. Both provide wireless phone and internet service for millions of consumers all around. Still, the companies are unique, autonomous ones fighting on the market. Verizon is not a subsidiary of AT&T, hence it is imperative to avoid misunderstanding them.
Verizon and AT&T: the history
Both companies' history Verizon and AT&T Internet have belonged in the telecom sector for a long time. In 2000 Bell Atlantic combined with GTE to unite the wireless activities of the two companies under the Verizon brand. Bell Atlantic has been acquiring smaller local phone companies throughout the country during the 1990s.
, and in fact date back to the first release of the telephone. Originally known as Bell Telephone Company, Alexander Graham Bell launched it in 1885 and maintained a local and long-distance phone service monopoly in much of the United States for over a century. In 1982, AT&T divided into many smaller companies referred to as "Baby Bells."
After several decades, the Baby Bells started to merge again. Bell Atlantic merged with GTE to form Verizon. SBC Communications then acquired AT&T Corp., the former long-distance arm that was separated from the original AT&T in 1983 and then adopted the name AT&T in 2005.
Even though Verizon and AT&T have their roots in telephone history, they have been competitors since the AT&T divestiture in the eighties.
Verizon and AT&T as the Leading Wireless Providers Today
Currently, Verizon and AT&T are in a very close fight for the title of the largest mobile operators in America in terms of subscribers. According to the figures provided by Verizon up to the beginning of 2023, the company reported it has more than 133 million total connections which include postpaid phones, prepaid as well as connected devices within their network. AT&T has slightly less than 120 million total mobile subscribers.
They support conflicting next-generation 5G networks and provide comparable best smart devices like the new Apple iPhones and the new Samsung Galaxy phones. They also have similar rate plans and features such as unlimited talk/text options, shared family plans, mobile hotspots, and streaming entertainment. This is because they are still in the process of expanding their new 5G networks, and data coverage and speeds differ across the nation.
While their wireless services compete directly, AT&T can offer other services such as home broadband, television, and traditional telephone services due to their control of both wireless and wired broadband assets. However, their key wireless phone businesses are pretty much distinct and are competitors but have no affiliations or arrangements whereby one firm dominates the other.
Acquisitional move bid by AT&T was unsuccessful.
Of course, AT&T did try in 2011 to acquire T-Mobile, another large player in the wireless space. However, regulators scuttled this $39 billion attempt by AT&T citing anti-trust reasons, fearing that the telecom giant would get rid of a low-cost access provider.
Afterward, some analysts wondered whether Verizon could be the next acquisition candidate if AT&T wished to expand its customer base even further. But no significant acquisition attempts by AT&T or Verizon or discussions of uniting the two largest wireless networks surfaced.
Independent Status Allows Competition
Thus Verizon remained an independent wireless operator of the nation that directly competes with rivals like AT&T and T-Mobile. Small local or regional carriers can merge sometimes, but Verizon and AT&T are likely to be separate entities shortly. The independence of the two rivals makes them search for new ways of producing and offering their services at cheaper prices as wireless technology continues to develop.
Entering the industry requires substantial capital and facilities to create and sustain a strong network throughout the country, thus making it difficult for incipient competitors to challenge these key wireless players. However, Verizon and AT&T compete for new customers with new phones, plans, and network improvements as each of the companies strives to become the largest and most preferred service providers for the ordinary mobile user. Since there are no related ownership, or joint ventures operating in the background consumers get to enjoy the real rivalry of two telecommunications giants as they wage war on the frequencies.
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