Obamanomics and AT&T
Obamanomics seems to be spreading into the corporate boardrooms of America such as AT&T. Recall that Obama called for a massive new tax on oil companies as a solution to record high gas prices that have created a hardship for many Americans, particularly the poor for whom he professes to be a champion.
For reasons no one can explain, the Columbia-educated presidential candidate doesn’t seem to understand that the new taxes would largely be passed on to consumers thus raising prices, forcing consumers to cut consumption, and ultimately exacerbate the problem - but then again, that’s Obamanomics 101.
Now, one wouldn’t expect a capitalist giant such as AT&T to follow in Obama’s economic footsteps, but that is precisely what is happening in Tennessee. According to the Tennessean, AT&T lost 33% of its landline residential phone business in the state between 2000 and 2007 because many customers fled to cell phone or internet-based phone alternatives.
AT&T’s response is straight out of Obama’s playbook. AT&T plans to raise prices in Tennessee beginning July 26th with a modest increase in basic services and double-digit increases for supplemental services such as Caller ID and Call Forwarding. For example, Caller ID would jump from $8 to $8.99 while Call forwarding would increase from $5.95 to $7 per month.
I could be wrong, but don’t price increases encourage customers to consider moving to the competition? Oh well, maybe AT&T, like Obama, also believes that any kind of CHANGE is good.
To read the Tennessean article.
29 Jun 2008 02:20 am Challen 0 comments