While T-Mobile is gradually becoming a Giant in Cellular Business in U.S, with its all Innovation and Marketing Strategy, other Wireless Carriers are running after it. AT&T’s effort, in 2011, to buy T-Mobile, went in vain after Federal turned down the claim for providing a better wireless experience to U.S Citizens. This time, Sprint is ON to bid T-Mobile, The Wall Street Journal reported.
Currently, AT&T, Verizon, Sprint and T-Mobile are four major key players in U.S Wireless market. AT%T is enjoying its domain with 108 million subscribers, while Verizon has 101 million subscribers. If Sprint manages to bid T-Mobile, together they will have a total of 98 million subscribers. Though the number is still less than AT&T and Verizon, still they are very much close to their Number.
Considering many facts, it may not be too easy for Sprint, to bid T-Mobile .In 2011, AT&T tried to buy T-Mobile. But the federal court termed it as not even a closet call. Federal Court reportedly stated that, being in very less competitive arena, there is no significance of merging with T-Mobile. If both wireless companies merged, it would reduce the choice of Citizen and would bound to take service from limited services. It may affect the quality of service, which in turn would affect citizens. Finally AT&T gave up the idea of acquiring T-Mobile.
Just after 2 years, Sprint is taking the same call! Sprint must have prepared a solid blue print for winning the bid, remembering AT&T’s case. Sprint itself is owned by Softbank. Softbank has more than 80% stake in Sprint. It will certainly aggressively back Sprint.
The million dollar question is, will U.S citizen get benefit if T-Mobile and Sprint merge together? May be. As a larger 3rd wireless business player, they may able to put a bigger competition, which in return yield best product in the market. This is just a common scenario to believe in, only. It’s pretty difficult to manage the same trend innovation, when two companies merge. Sprint is offering its service in CDMA sector while T-Mobile uses GSM platform. It will take enough time for the company to know, how effectively they will handle these two technologies as a single unit. More importantly, the wireless business environment will not be competitive. T-Mobile may often lose its own significance within.
Sprint may get a green signal in bidding process, as Federal Communication is headed by Tom Wheeler who once supports AT&T and T-mobile merger. Most probably, the first half of 2014 will see the 3rd largest merger in U.S cellular Market.