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Blog: John Myers

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Continued Consolidation

With the recent trend of privatizations in the telecom industry slowed by capital liquidity problems, there is news of the continued consolidation of the telecom market with T-Mobile's acquisition of SunCom. Tricia Duryee looks at the transaction.

There are two aspects to this transaction. The first is the addition of 1.1m subscribers that brings T-Mobile within a mere....... 25m subs of third place Sprint Nextel. The other aspect is the ability of T-Mobile to trim the roaming fees that T-Mobile had to incur in the "Carolinas" and other areas where their coverage was lacking.

While I'm not impressed with the price that T-Mobile is paying to acquire "just" 1.1m subs, I am impressed with the ability to expand the network and trim associated costs.

Technorati Tags: Telecommunications, Telecom, T-Mobile, Tricia Duyree, Consolidation

  Posted by jmyers on September 19, 2007 8:00 AM |

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