Does Sprint Merging with T-Mobile Make Sense?

Rich Tehrani : Communications and Technology Blog - Tehrani.com
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Does Sprint Merging with T-Mobile Make Sense?



As Tammy Wolf reports in the TMC Newsroom, Sprint and T-Mobile may merge, allowing the weakest national wireless carriers to merge resources and become more credible against the threat from AT&T and Verizon. If there is one thing the wireless industry has learned these past years is network quality is the largest differentiator from a marketing perspective and as these wireless companies all will support LTE and most likely many of the same devices, carrier's likely can't count on an exclusive killer device as much as they did in the past.

In other words, if Verizon and AT&T had both used the exact same network technology, we may have seen Apple support both networks earlier on. Moreover, if there is a merger, all three providers will likely be about the same size in terms of customers meaning better negotiating power with device manufacturers - not to mention equipment providers.

Carl Ford, co-founder of the 4GWE conference thinks the fact that there are relatively new CEOs at Sprint, T-Mobile and Clearwire bodes well for a deal which is currently at the rumor stage. I tend to agree.

It seems to me that the need for these companies to get together is predicated on the fact that there is a perception issue in the US that Verizon has the best network and the others just aren't as good. If these companies can combine their coverage maps, they could move the dial substantially.

And to users, if they can combine their networks and come out with something that has nationwide quality on par with Verizon, the deal is a no-brainer.


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