Not a buyer in AT&T; market share threat from new entrants is overstated due to high customer switching costs.

Whether it's Verizon or AT&T, they are seeking to encroach on that market given that they own all the available satellites. However, this also negatively affects AT&T as you can see here. AT&T stock opened today down about 10% and fell an additional 2% during the day after making a good rebound to around $23. If we move to Verizon , the story will be similar here. Verizon's stock opened down 7.5 percent, then fell to 12 percent, and is now stable at a 10.5 percent decrease. But here's why I did n't buy it . That's right, here's why I'm not convinced . Yes, you know that a major new player entering the market and potentially taking a share of your market share can be scary, but I don't think it will be as bad as investors are currently reacting by selling shares of both Verizon and AT&T. The reason I don't think it will be that bad, think about it, right ? There are many current promotional offers from different telecommunications companies, are n't there? Think about any time you watch any sporting event, television program, or anything else. Um, AT& T will give you a brand new iPhone in exchange for switching from Verizon, right? Yes, there are always lots and lots of offers, but the reason people don't switch and this business strategy doesn't necessarily work is that the cost associated with the conversion is too high . People prefer to stay with their company rather than have to move everything, including their phone numbers and all their family information, to another company. Therefore, I don't think this issue is as big as everyone makes it out to be.