T-Mobile had their first quarter earning call yesterday, results were good however, they did miss to calculate their estimated profit but still good. We want to focus more on the 1.1 million subscribers that they added for the quarter. Now since the US market the wireless market here is pretty much saturated. It could only mean one thing; some customers from 18T Sprint and Verizon are leaving and joining T-Mobile.
We already know that Verizon lost over 300,000 customers in the first quarter last week. Large percent of that went to T-Mobile. With the recent win of the 600 mhz Spectrum T-Mobile is a target for merger and acquisition.
T-Mobile won the 600 mhz spectrum is not for a few states or cities. It’s for the whole United States, it’s full coast to coast licensed spectrum. When fully deployed it will rival that Verizon and 18 T’s network. And when you include the Verizon subscriber count, T-Mobile is now looking like a juicy piece of prime rib to all these hungry hyenas. The hyenas here being Dish Network Comcast and Spectrum.
It’s not a secret that Dish Network Comcast and Spectrum are all looking for a way to get into the wireless arena. They want their own wireless service to include in their TV service. It’s a dream of any internet and telecom companies that to bundle TV internet and phone service as an all-in-one solution. That’s why 18T has u-verse and direct TV for it’s own triple play.
T-Mobile and Sprint are the only two major wireless carrier that doesn’t have some sort of TV offering. Dish Comcast and Spectrum has a triple play of short but they rely on what’s called MVNO, that’s where they buy wireless minutes in bulk at wholesale price and then resell back to their customer under their own branding.
April 27th is the day where the moratorium on merger and acquisition talk imposed by the FCC is lifted. We can expect to hear official announcement soon thereafter of any mergers or acquisition of these telecom companies. The FCC will for sure block ATT and Verizon from either merging themselves or buying sprint or T-Mobile.
Maybe T-Mobile and Sprint could merge but it’s a horrible idea for T-Mobile because Sprint would have all the upside. Sprint would have access to the 600 mhz Spectrum plus a better Network while T-Mobile would gain nothing from the deal. They could gain customers but if T-Mobile plays their card right the customers will eventually leaves Sprint and join T-Mobile anyway. So, this don’t make sense for T-Mobile at the moment. T-Mobile would be saddled with all of Sprint’s debt.