Will AT&T, T-Mobile Merger End Quickly? | Tech Analyst Jeff Kagan

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Or Will It Drag On and Hurt The Industry?

     

Jeff Kagan

Tech Analyst

     

One reason the Department of Justice acted so quickly to shoot down the merger was the negative impact it was having on the other industry competitors.

The government is concerned that the competitive wireless space was being hurt by this merger so they wanted to put an end to it quickly and let it get back on a healthy growth track.

Now the question is what is next? The ball is in AT&T’s court. Will they go along with the government decision or will they fight?

If they fight how long will the process take? If they fight I expect this process to unfold pretty quickly. By next year this time it will be all over.

Will this strengthen Sprint Nextel, or hurt them?

Sprint Nextel was having lots of trouble over the last five years, but had managed to turn their fortunes around and were finally heading in the right direction again. However during the last quarter or so, since AT&T and T-Mobile announced their merger plans, Sprint has been losing again.

I think the government sees this merger as a threat that would unsettle the marketplace. Something that had to be dealt with quickly.

The two big questions we now have are, will this turn Sprint around again, and will AT&T fight this decision?

We’ll have to wait to see the answers. Stay tuned.

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Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com

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