The AT&T and AT&T has a plan to save it, says New York Times Journalist Andrew Ross Sorkin. Sorkin claims AT&T has been in talks with Leap Wireless to sell a chunk of T-Mobile to the regional wireless carrier. AT&T hopes this divestiture will make it easier to get approval for the deal.merger is on the verge of collapse, but
As part of this plan, AT&T would sell off a large chunk of T-Mobile’s customers and some wireless spectrum to Leap. AT&T would keep the bulk of T-Mobile’s valuable spectrum assets, which it needs for its 4G LTE network. The deal would create four major wireless carriers with T-Mobile/Leap solidly in fourth place behind. AT&T wouldn’t get too big and the wireless industry would remain competitive.
This strategy looks good at first glance, but it falls apart under scrutiny. As Sorkin points out, AT&T’s scaled-down acquisition of T-Mobile still leaves us with a duopoly of Verizon and AT&T. Even with a big divestiture, the two carriers would be well ahead of their smaller rivals. Customer base is only one part of this controversial deal; wireless spectrum also plays a role. T-Mobile might gain the customer base of Leap Wireless, but it would lose its valuable spectrum. Without spectrum, the carrier can’t build out its network and would fall even further behind in the wireless market.
Sell Your Old Cell Phone for Cash
Select your device below to begin:
Buy a New Cell Phone
Best Sellers from AT&T
New Releases from AT&T
See all cell phones from AT&T
Best Sellers from Sprint
New Releases from Sprint
See all cell phones from Sprint
Best Sellers from Verizon
New Releases from Verizon
See all cell phones from Verizon