Could AT&T Actually Still Merge w T-Mobile? Yes! Let Me Explain

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From Jeff Kagan, Telecom Industry Analyst

     

Jeff Kagan

Telecom Industry Analyst

     

Ten years ago there were lots of mergers. The marketplace was full of lot’s of small companies, so each merger was never a threat.

Even seven years ago when SBC acquired AT&T, Bellsouth and Cingular, the marketplace was plenty of mid size companies.

So AT&T wanting to merge with T-Mobile set their sites on the same goal. Simple acquisition. To be responsible to their shareholders they had to do this.

However now that the US Government said no, what comes next? The choice is either AT&T backs away or makes another, different offer.

That is the path I think they will take. I think we will see AT&T make a new offer.

What will this new offer look like? That is the question we all wonder.

AT&T needs this merger to get their hands on T-Mobile spectrum. They could actually spin off the rest of the company and assets and still be happy.

If they do that then another company like Sprint Nextel for example, could acquire the customers and other assets.

This would give AT&T the spectrum they need, and give Sprint Nextel the business they need. Sprint has loads of spectrum so that should not be a problem for them to handle the extra traffic.

There are plenty of options for AT&T to take next. I’ll be right now, AT&T executives are talking and debating next steps.

I believe there will be a next step for Ma Bell. They aren’t going to walk away. The only question is what it will be and when we will hear about it.

I hope it is quick, because this uncertainty is currently hurting the industry.

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