AT&T, Verizon slip as Sprint ends T-Mobile bid

AT&T (T -1.5%) and Verizon (VZ -1%) are lower following news Sprint is abandoning its attempt to acquire T-Mobile (at least for now) due to regulatory opposition, and has sacked CEO Dan Hesse.

"Four national wireless providers is good for American consumers," FCC chairman Tom Wheeler declared in a statement today. "Sprint now has an opportunity to focus their efforts on robust competition."

As a standalone entity, T-Mobile has become a thorn in Verizon and (especially) AT&T's side, grabbing both postpaid and prepaid share thanks to aggressive pricing and a slew of promotions. The "Un-carrier" posted 1.5M net subscriber adds in Q2, including 908K branded postpaid net adds.

T-Mobile's price pressure is unlikely to abate if Iliad succeeds in its bid to buy the company, given Iliad's track record in France. Sprint, meanwhile, may get more aggressive under new CEO Marcelo Claure (the founder of mobile distributor Brightstar), as it tries to reverse many quarters of share losses.

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Comments (6)
  • jstratt
    , contributor
    Comments (3981) | Send Message
    I continue to think a stronger 3rd competitor was more dangerous than 2 weaker competitors. T/VZ have the ability to stiff arm competitors and limit customer losses.
    6 Aug 2014, 01:36 PM Reply Like
  • Energysystems
    , contributor
    Comments (2112) | Send Message
    Hard to call TMUS weak, 5 straight quarters of 1M+ subscriber gains. Legere is hitting on all cylinders.
    6 Aug 2014, 01:56 PM Reply Like
  • King Rat
    , contributor
    Comments (1735) | Send Message
    Fully agreed. "Divide and conquer" means to divide your opponents and conquer them separately. As separate entities the two smaller carriers are weaker than they would be as a larger entity.
    6 Aug 2014, 01:56 PM Reply Like
  • rjnhawaii
    , contributor
    Comments (210) | Send Message
    Tmo will not keep them unless they improve their network!
    Mkt leader VZ has the best network and fewest discounts.
    6 Aug 2014, 02:09 PM Reply Like
  • anglhistorian
    , contributor
    Comments (100) | Send Message
    Just from the customer viewpoint, my experiences with both TMUS and S were horrible and the worst respectively.
    T anVZ were at least usable.
    The best was (in the past) US Cellular, a regional carrier related now to Telephone and Data Systems.
    Long, T,VZ, VOD.
    6 Aug 2014, 02:58 PM Reply Like
  • Veritas1010
    , contributor
    Comments (3266) | Send Message
    Xavier Niel billionaire owner of Iliad represents a much greater "existential threat",(if I may borrow out of context from a continual theme from Israel's perception of Iran), to the US telecom duopoly than the former merger just dashed.


    It's not just all about size on life, it's also about how you use what you've got to roil the market and then tear apart existent customer bases. (This is the methodology used by Mr.Niel, I'm merely paraphrasing), T is much more vulnerable in such a struggle whose pricing has been aimed at holding on to the lower end of the US telecom market - in a nation whose middle-class is slowly and inexorably having there pockets picked by several domestic and international forces.


    In a tough market 5x's smaller than the US Iliad has decked Orange, (former France Telecom), and has run successfully on razor thin profits on 3€ monthly data plans. Yes, if Iliad is serious they'll have to raise a lot of debt money, but BNP and other European institutions have already expressed a willingness to help -and recall money is still cheap globally.


    disc. Long T and VZ, but watch out for this company, "they don't play"...and could be a duopoly game changer.
    6 Aug 2014, 03:51 PM Reply Like
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