Or Will It Drag On and Hurt The Industry?
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.
* * * * * * * * * * * * *
These comments may be quoted in news stories.
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
To be added or removed from this mailing list for comment, please send me an email.
* * * * * * * * * * * * *
Jeff KAGAN| Technology Industry Analyst at www.jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Wireless, Telecom, CableTV, IPTV, Technology, HealthCare Technology
~ Analyst, Columnist, Author, Consultant, Speaker
Phone 770-579-5810 Email jeff@jeffKAGAN.com
Other press releases from Jeff Kagan
- Apple iPhone Sales Weaker Than Expected | Jeff Kagan Industry Analyst - January 14th, 2013
- Will FACEBOOK Launch Phone This Week? | Jeff Kagan Industry Analyst - January 13th, 2013
- Nokia Not Out of Woods Yet | Jeff Kagan Wireless Analyst - January 10th, 2013
- Why Microsoft Windows 8 Holiday Sales Were Soft, Jeff Kagan Tech Analyst - January 5th, 2013
- Sprint Nextel Acquiring Clearwire for Wireless Data | Jeff Kagan Industry Analyst - December 17th, 2012
Contact InformationJeff Kagan
Title: Tech Analyst
PO Box 670562
Marietta, GA 30066
Phone: 770 579 5810