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Tuesday, December 17, 2013

Potential Sprint and T-Mobile Merger on Horizon

t-mobile-sprintThis generation has known four major carriers: Verizon, AT&T, T-Mobile, and Sprint. In our previous infographic blogs, we have shown how the current phone carrier landscape has developed (Verizon & AT&T, T-Mobile & Sprint). However, that landscape of mobile carriers could quickly change yet again from 4 to 3. The fact that there are more than three facilities-based wireless operators succeeding financially in the U.S. is an accomplishment since it is rarely seen in other countries. Although the U.S has been the exception, a significant merger between T-Mobile and Sprint could alter that.

Some feel that the leaking of this information may simply be to put out feelers for how competitors, shareholders, and the government will react. Truth is, Verizon and AT&T are constantly growing their 4G network at a rapid pace. They have long been the clear-cut leaders of wireless with a 76.1% market share. Although T-Mobile and Sprint make up 16.4% of the market share, there are rumors that the two carriers will merge to help establish them on equal footing. The combination of assets and finances could easily put them into a potential equilibrium with Verizon and AT&T.

Sprint and T-Mobile competing together rather than separately provides a better chance to run with the big dogs. Given the investment in network and spectrum that will continue to be required to keep pace with the annual growth in data consumption, it is critical to remain aggressive in the market and not be handcuffed. The purchase of T-Mobile will provide a platform for more meaningful competition and leading to the acquisition of more wireless spectrum for coverage over vast geographic regions.

The FCC has always felt more comfortable with the 4 carrier set-up but it will be up to Sprint and T-Mobile to convince FCC Chairman, Tom Wheeler, that a 3 carrier set-up is more productive in the long-term. In the past, AT&T and T-Mobile had discussions about a potential merger which were quickly snuffed out. With new talks of T-Mobile and Sprint merging, the core four of carriers could soon be seen as a power trio.

Launch 3 Telecom can provide equipment used by current network providers such as Verizon, AT&T, T-Mobile, and Sprint. If you are interested in AntennasRET Cables, or other equipment used in a cell tower build, contact Launch 3 Telecom at 877-878-9134 or email sales@launch3.net.

www.Launch3Telecom.com | sales@launch3.net | 877-878-9134

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