US DoJ to Block AT&T T-Mobile Merger | Jeff Kagan Tech Analyst

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Jeff Kagan

Tech Industry Analyst

Atlanta, GA, August 31, 2011 — Comment from Jeff Kagan, Tech Analyst at www.jeffkagan.com

This is a big blow to AT&T, but if it happened it would have been a big blow to the entire industry.

Is the deal dead? No. It can be renegotiated. The terms can be changed then it can be re-introduced.

If the deal dies, it is good news for T-Mobile since they get a big break up fee.

Sprint Nextel shares will soar on this news. This is a big win for Sprint and Dan Hesse since they have been opposed.

AT&T needs more capacity. However this is the same problem every carrier has to deal with going forward.

We need solutions.

One could be to take back the spectrum and let all carriers use it equally.

Another could be from a solution like Lightsquared wants to offer.

Either way we need to come together as a nation and an industry and come up with a real long term solution.

I don’t think this deal is dead. Not yet. I think the government is simply saying this deal, the way it is structured will not be approved. So AT&T must change the structure and they will. They will reintroduce this deal and it will be under consideration again.

This deal is not dead, but it will be different. The question is what will AT&T have to give up.

More to come…

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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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Jeff KAGAN| TECH ANALYST | www.jeffKAGAN.com

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