T-Mobile was struggling until AT&T Mobility said they would acquire the company earlier in the year. Now that it looks like the AT&T merger won’t happen, what does it mean for T-Mobile?
T-Mobile is actually in much better shape then they were one year ago.
They have at least two immediate choices. One is with $3 billion and $1 billion in spectrum both from AT&T they can ramp up and become a real competitor. The other is they could be acquired by a different company.
The idea of being acquired is not what was wrong. It was being acquired by AT&T that was wrong. It would be just as wrong to be acquired by Verizon Wireless.
However if a smaller competitor wanted to merger with them I think that may work.
Sprint Nextel for example may be a good example of a company that would be approved.
If AT&T acquired T-Mobile the marketplace would have been reduced to just two major competitors. That is too few.
However if Sprint Nextel acquired T-Mobile the marketplace would have three major competitors and that would be much better that is is today.
Sprint Nextel is struggling today.
They were struggling until CEO Dan Hesse came on board to save the company. He did a great job and the company had done a remarkable job of recovery. They were not as strong as AT&T or Verizon, but they were improving.
During the last year that has changed and Sprint is struggling again.
What is the future of T-Mobile? What is the future of Sprint Nextel? What is the future of the industry?
These are the questions we have right now.
AT&T and Verizon will continue to grow. Even with the $4 billion payment to T-Mobile, AT&T will still be strong. That is no more than a stubbed toe to the phone giant.
What comes next is the really interesting question to watch.
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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 w Atlanta based jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
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Contact InformationJeff Kagan
Title: Tech Analyst ~ Wireless Industry Analyst ~ Telecom Industry Analyst
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