The FCC is the most likely roadblock to...
The FCC is the most likely roadblock to Sprint’s potential buy of T-Mobile, but a merger remains possible, even given concerns raised by FCC Chairman Tom Wheeler, said BTIG analyst Walter Piecyk Tuesday in a blog post. “Chairman Wheeler has…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
voiced his skepticism about the potential for a Sprint/T-Mobile deal but we believe he is well suited to evaluate the transaction on its merits,” Piecyk wrote. “The wireless industry not only faces new competition from more Wi-Fi buildouts but can also offer new competition to the wired broadband industry. Competition is not just about lower prices but also about investment in the network, a reality that is likely to be recognized in several European markets that are evaluating the benefits of consolidation.” Piecyk said T-Mobile and Sprint together are investing less in their networks than either AT&T or Verizon individually. “Even today, Sprint offers the slowest LTE speeds in the industry as a result of its under-investment and its narrow use of spectrum,” he said. “Meanwhile, T-Mobile recently paid $2.03/MHz/POP for the worst of available 700 MHz spectrum because they did not have the capital to adequately compete in the original 700 MHz auction.”