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Consider this: Many people who work in large cities live in the suburbs. So even if they could subscribe to a Sprint or T-Mobile service that works fine in the city where they work, these services may not work at their homes. And even if the service works at home and at the office, it may not function on the way to and from work. What's more, many people travel throughout the country, and they expect their phones to work wherever they go. This is especially true of so-called high-value customers who are more likely to travel for work or to have vacation homes in areas where a wireless operator whose network is concentrated in an urban area may not have coverage.
Why Comcast-Time Warner Cable and iphone case louis vuitton not Sprint-T-Mobile? Some people have suggested that Son may be feeling emboldened by what appears to be the Department of Justice's and Federal Communications Commission's willingness to consider a merger between the No, 1 and No, 2 largest cable operators in the US, But the truth is that comparing these two mergers is a lot like comparing apples and oranges, Yes, they're both fruit, but they're very different, First, at a basic level, the wireless market is far more competitive than the fixed line broadband market, In many metropolitan areas there are at least four choices for wireless service, plus dozens of operators reselling service from one of the big four operators..
By contrast, cable markets were designed as monopolies. Years ago, when cable companies came into communities to offer TV service, they were granted exclusive franchise agreements. And so for years, the cable operators were prohibited from building networks and competing in another cable company's territory. As a result, Comcast and Time Warner Cable essentially do not overlap in any meaningful way when it comes to their network or customer base. What this means in terms of assessing whether a merger is good or bad for competition is that in the case of the wireless market, you typically have at least four major players in most major markets: AT&T, Verizon Wireless, T-Mobile, and Sprint. There are few markets where T-Mobile and Sprint do not overlap. So when you combine these companies, customers in those markets that were once served by four major wireless operators will now have only three choices.
The iphone case louis vuitton situation is very different for Comcast and Time Warner since the companies don't overlap at all in terms of their footprint, If the two companies merged, there would be no loss of a competitor in any single market, In other words, consumers living in Time Warner Cable's territory never had the choice of subscribing to Comcast, Likely their only choice has been Time Warner Cable, If they were lucky they might be able to choose a satellite provider like Dish for TV or a telecom such as AT&T and Verizon, which has been building high-speed broadband in both Comcast and Time Warner Cable territory to compete..
After a merger between Comcast and Time Warner Cable, customers would have the same number of choices for high-speed Internet, TV, and phone service that they had before the merger. The conclusion So what does this all mean in assessing whether combining Sprint and T-Mobile would actually benefit consumers or not? T-Mobile is making headway with its Uncarrier strategy. The 4.4 million customers it added to its network last year came from other carriers. So it's clear that the lower prices and marketing message are resonating with some consumers. But the company still isn't able to persuade many customers who otherwise would be very willing to try the service, because it simply doesn't offer coverage where these customers live, work, or travel.
Furthermore, because Sprint and T-Mobile compete in essentially all the same markets as well as lack coverage in most of the same markets, merging the two companies together does not achieve the one objective they each need to compete more effectively, which is to increase their footprints, In addition, because most of their individual spectrum holdings are in high-frequency bands, they don't gain spectrum assets that would help them build to unserved areas, And, of course, there is the fact that both the Justice Department and the FCC rejected AT&T's acquisition of T-Mobile, stating that four nationwide carriers rather than three is most beneficial for competition, iphone case louis vuitton Regulators have essentially been slapping themselves on the back for rejecting the megamerger between AT&T and T-Mobile..
So what's likely to happen? No matter how persistent he is, I still think that Softbank's Son will have a difficult time convincing regulators and policy experts, or even business leaders who understand the wireless market, that a merger between Sprint and T-Mobile will create a single rival that can truly change the US wireless market. Based on the carriers' current spectrum holdings and network footprints, there isn't much to be gained from this merger. That said, Son may try to convince regulators and business leaders that a larger customer base and more business synergies will provide the necessary capital for the combined company to invest in acquiring new spectrum and build out its network. The problem is that regulators would have to believe that the combined companies would actually make good on these promises. That could be tough given Sprint's disastrous past experience integrating the Nextel network with the Sprint assets.
Instead, I think regulators will want to take a wait-and-see approach, I imagine the FCC, in particular, will do its best to create an environment over the next two years in which Sprint and T-Mobile will have an opportunity iphone case louis vuitton to purchase more wireless spectrum in the hopes that the companies can use these assets to further scale their businesses, Two important spectrum auctions are coming up over the next two years, There is the AWS-3 auction in September, which will auction higher-frequency spectrum, But since AWS is already so widely used, the spectrum licenses in this band are considered valuable because they could make roaming between networks easier, Operators that use this frequency band could also benefit from a wider handset and network ecosystem..