Atlanta, GA (PRWEB) December 13, 2013
Sprint is considering acquiring T-Mobile, according to Reuters, Dec 13.
Industry analyst Jeff Kagan offers comment.
“If Sprint does acquire T-Mobile, it would transform them into a larger and stronger number three competitor to both AT&T Mobility and Verizon Wireless, virtually overnight,” says Tech analyst Jeff Kagan. “Whether the US Government would allow it is the question.”
When AT&T Mobility tried to acquire T-Mobile a couple years ago the US Government said no in order to keep four competitors in the space, according to the NY Times, Dec. 19, 2011.
"During the last year T-Mobile got a new CEO and is breathing life into its sails,” says Principal analyst Kagan.
“At that time I asked if it would be possible for Sprint to merge with T-Mobile. At the time these were two, smaller and weaker companies. However things have been changing. Softbank acquired most of Sprint and is working to update speeds of their wireless data network. However Softbank has a larger appetite in the US market,” says Kagan.
“I think Softbank and Sprint would love to sink their teeth into T-Mobile. It would transform them into a much larger and much stronger third place competitor, especially since they are both reinventing themselves as we speak,” says Kagan.
The real question is would the US Government permit it? When they said no to the AT&T merger, they said it was to keep the top four wireless carriers separate for competitive reasons. If that is still the case then there is no chance of this merger happening. However if the courts have a different opinion now, then it is possible.
“We’ll just have to wait and see what happens next. There is still quite a bit of ground to cover. First, Sprint and Softbank have to decide to make the attempt. Second, they have to get T-Mobile to buy in. Third, they have to convince the US Government to let them actually get together. And there are so many things that could get in the way,” says Kagan.
“So let’s take a breath and wait and see what happens next. The game hasn’t even started yet. We’ll just have to sit and wait and see what happens next. Either way, this will be interesting to follow however,” says Kagan.
About Jeff Kagan
Jeff Kagan is a Technology Industry Analyst, consultant and columnist. He is regularly quoted by the media and shares his opinion in many ways over 25 years.
He offers comment to reporters and journalists on wireless, telecom, Internet, cable television, IPTV and other tech news stories.
Kagan is also known as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst.
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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.