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Strategy Analytics Releases AT&T T-Mobile ReportSep 12, 2011 (Close-Up Media via COMTEX) -- Strategy Analytics predicts that the AT&T T-Mobile US acquisition can still be completed, as long as AT&T divests appropriate spectrum and persuades Deutsche Telekom to be patient. According to a release, the Strategy Analytics Wireless Operator Strategies service analyzed AT&T actions, which could satisfy the Department of Justice in order to get approval for the T-Mobile acquisition. "The recent DoJ intervention to block the acquisition represents a return to pre-2000 antitrust enforcement," said Sue Rudd, Director, Service Provider Analysis at Strategy Analytics. "The DoJ review of the AT&T T-Mobile acquisition may be compared to the 2000 GTE Verizon deal which took 23 months to complete and required many DoJ-requested modifications. AT&T still has strong national competition. The potential problems are in specific Cellular Market Areas." In the report, AT&T and T-Mobile: Will there be a Spectrum Fire Sale to Escape Department of Justice and Close the Deal? Strategy Analytics reviewed: -Spectrum holdings of AT&T and T-Mobile; -Spectrum required by AT&T to achieve 4G plans while maintaining 3G networks; and -Spectrum likely eligible for divestiture. "This DoJ intervention makes it nearly impossible for AT&T to meet the March 2012 deadline with Deutsche Telekom," said Phil Kendall, Director, Strategy Analytics Wireless Operator Strategies. "Deutsche Telekom will need to be persuaded to waive its penalty clause or at least to extend the date. This is probably still the best deal they can get for T-Mobile US." The DoJ highlighted markets where AT&T will likely have to sacrifice spectrum, including Dallas, Houston, Oklahoma City, Birmingham, Honolulu, and Seattle. Smaller operators-Sprint, MetroPCS, Leap Wireless, US Cellular and even Dish Network-could pick up a good bit of this AT&T spectrum at fire sale prices. Strategy Analytics provides market intelligence focused on opportunities and disruptive forces in the areas of broadband, mobile and wireless, and intelligent systems and virtual worlds. ((Comments on this story may be sent to [email protected])) |