Boston, MA 12/16/2013 (wallstreetpr) - T-Mobile US Inc (NYSE:TMUS) is under the scanner again, just two years after AT&T’s misdirected attempt to acquire small-sized T-Mobile. This time around it not any other giant technology company but another similar-sized player –Sprint – which proposes a merger expecting to consolidate a subscribership of less than 53 million.
In contrast, the giant telecom companies – Verizon has over 95 million users, while AT&T has over 72million.
SoftBank, which has a majority stake in Sprint, CEO Masayoshi Son at SoftBank has since been evaluating the proposal.
AT&T earlier bid dismissed by FCC
Earlier, a high-profile bid for a telecom service provider with limited post-paid subscribers was annulled by the Department of Justice and the FCC, which did not appreciate the consolidation by one of U.S pan-country service providers. The fear of monopoly may not be far removed from the decision propose experts. If the current four telecom players consolidate, then there would remain only three main players, which may have an impact on the overall quality and pricing of services.
Spectrum auction postponement affects TMUS
T-Mobile US, Inc. (NYSE:TMUS) progress has been drastically affected, after FCC delayed the auction of some of the spectrum to the middle of 2015.
There T-mobile needs a service partner who can share spectrum with it.
Talks between Verizon and T-Mobile are in advanced stages on the sharing of spectrum in rural areas by Verizon with TMUS. This will allow T-Mobile to expand its network while Verizon will be able to deliver its much promised 4G network services.
FCC decision will direct new phase for T-Mobile
However, the decision by FCC and the DOJ will direct the next growth phase for the network service provider.
T-Mobile US, Inc. (NYSE:TMUS) is in dire need of the low-levels of frequency as most of these frequencies, nearly 75% of these are already auctioned off to Verizon and AT&T.