It has been said that Spring is the
season of romance when couples start thinking about weddings. That
saying holds true in the business world also as four major players in
wireless media are looking at a double wedding. If a few government
agencies give their nod we could soon see bell ringing as AT&T
merges with Direct TV and Sprint
merges with T-Mobile.
“For Sprint and T-Mobile, we actually
believe this news helps (not hurts) their cause for a potential
merger. While we recognize that the AT&T/DirecTV merger is a
vertical deal and does not take out a competitor, we think the size
of the resulting company very much shines the light on the lack of
scale Sprint and T-Mobile would have in this changing world,”
said Jennifer Fritzsche, a Wells
Fargo analyst, in a
research note quoted by ZDNet this morning.
Three years ago three of these four
players were involved in wedding talks when Sprint
had an early spring romance will T-Mobile before breaking up over
compatibility issues. Then while on the rebound T-Mobile
took up with AT&T as they talked about walking down the
aisle. After 7 month the romance between T-Mobile
and AT&T fizzled after Sprint objected to the wedding and DOJ
(Department of Justice) also said no to the nuptials.
In the years since the love triangle
T-Mobile has gone through some changes by merging with MetroPCS and
making their network more compatible. These changes caught the eye of
Sprint's parent company making them consider rekindling that old
flame. If the romance can survive this time around it the combined
company of Sprint and T-Mobile would become a close third, in
subscriptions, behind Verizon and AT&T
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