Industry Analyst Jeff Kagan on Wireless Industry Consolidation
Atlanta, GA (PRWEB) July 19, 2013 -- The lack of wireless spectrum is one of the main reasons behind the recent wave of wireless mergers, according to Phil Goldstein of Fierce Wireless, July 16.
Tech analyst Jeff Kagan offers comment.
“We have seen waves of merger activity from time to time in wireless, but this time it’s about the need for wireless carriers to to get more wireless spectrum. Wireless spectrum is the on-ramp to the wireless Internet when using smartphones and tablets. Lack of spectrum is like trying to squeeze ten lanes of traffic through a one-lane on ramp. Traffic jams are inevitable,” says Principal analyst Jeff Kagan.
“The need for a spectrum solution is growing. One solution is mergers. The fewer companies that compete, the more spectrum each can have. On the other hand smaller wireless carriers also need spectrum and they are being shut out of this debate. Every carrier needs spectrum, which is the on-ramp to the wireless Internet. And the wireless Internet is what the future is all about,” says Kagan.
“It’s vital that AT&T Mobility and Verizon Wireless get access to spectrum because they account for 70 percent of the smartphone marketplace. That makes perfect sense. However it’s just as vital that smaller carriers get access to wireless spectrum so they can remain competitive players as well,” says Kagan.
Fierce Wireless spoke with C Spire Wireless spokesperson Dave Miller who said, “Our company has successfully operated in the wireless business since 1988 as a privately-held wireless provider. We welcomed many new companies to the industry in the 1990’s and we’re disturbed by the current trend of smaller operators being acquired. Our industry needs more competition, not more consolidation, and C Spire intends to continue aggressively competing as an independent company.”
“This puts the spectrum problem in very clear terms. We must develop real spectrum solutions that help every competitor, large and small. That’s what’s best for competition. I want the big guys like AT&T, Verizon and Sprint to succeed, but I also want the smaller players like T-Mobile, C Spire and US Cellular to succeed as well. That’s a healthy marketplace,” says Kagan.
“The next consolidation wave has begun and I expect we will see other deals announced. The reason for this latest wave is more about spectrum than anything else. We have a real spectrum shortage problem and it’s only getting worse. The more we use smart phones and tablets the more this crisis grows. We must come up with a solution to solve this problem. A solution that is fair to both larger and smaller carriers,” says Kagan.
About Jeff Kagan
Jeff Kagan is a Technology Industry Analyst and consultant who is regularly quoted by the media over 25 years. He offers comment on wireless, telecom and tech news stories to reporters and journalists.
He is also known as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst depending on the focus of the story.
He follows wireless, telecom, Internet, cable television and IPTV. He also follows the wide consumer electronics and technology space.
Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.
Clients: Call or email Jeff Kagan to discuss becoming a client. Kagan has worked with many companies over 25 years as consulting clients.
Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.
Visit his website: at jeffKAGAN.com to learn more and for disclosures.
Kagan is an analyst, consultant, columnist and speaker.
Twitter: @jeffkagan
Jeff Kagan, Tech Analyst, Industry Analyst, Jeff Kagan, Tech Anaylyst, http://www.jeffKAGAN.com, 770-579-5810, [email protected]
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