Comment on AT&T Continuing to Try and Merge w T-Mobile

Print  | 

From Jeff Kagan, Telecom Industry Analyst

     

Jeff Kagan

Telecom Industry Analyst

     

Remember, the AT&T of today is really a much larger SBC. After the Telecom Act of 1996 was passed, then CEO Ed Whitacre tried to acquire AT&T. Then FCC Chairman Reed Hundt, said that was “Unthinkable”.

Yet a few years later SBC under Whitacre did indeed acquire AT&T. And Bellsouth. And Cingular.

I believe the company will take a similar path to acquire T-Mobile.

Don’t think the deal is dead. It was just bumped off the tracks. AT&T is working hard to make some changes and put it back on the tracks.

AT&T does need this deal, but this deal won’t solve their problems. It will only delay them a few years. As the wireless data traffic keeps growing it will once again stretch their ability to serve customers.

In fact every carrier may face the same problems over the next few years. No mergers will help.

Instead we need to come up with other solutions. There are several ideas in the marketplace now. There are others IF we just stop the pointless arguments and really focus on solving the problem.

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