It looks like the AT&T T-Mobile merger is over and done with.
Mergers aren’t dead. Just large mergers that would impact the competitive playing field.
If Verizon Wireless tried to acquire T-Mobile they would have had the same push back.
During the last ten and twenty years we have seen countless mergers. AT&T thought this was just going to be another one. However the marketplace has changed.
Today there are very few, very large competitors. This merger would have changed the competitive playing field.
In fact I am not convinced this merger is completely dead. SBC was turned down in their attempts to acquire AT&T in the late 1990′s. Several years later they were approved.
What comes next? AT&T can strike a spectrum sharing deal with T-Mobile and get what they need. Spectrum. That would solve their quality problems.
Verizon just struck a deal with the cable television industry and is acquiring their spectrum.
This raises new concerns that just two wireless carriers will be dominant in smart phones. However that is another debate.
Bottom line, this move is good for the marketplace, but not good for AT&T. Next will be AT&T doing a spectrum sharing deal with T-Mobile.
T-Mobile could either build their wireless data operation or be acquired by a smaller competitor like Sprint Nextel.
If they merge with Sprint Nextel that would build three big competitors. Merging with AT&T would have turned the marketplace into a two company race.
More to come…
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Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com
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Jeff KAGAN| Tech Analyst w Atlanta based jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
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