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T-Mobile Deal Leaves Sprint’s Future Unclear
Posted: 21-Mar-2011 [Source: DealBook(NYT)]

[If the AT&T buyout of T-Mobile USA goes through, three out of four wireless subscribers in the U.S. would belong to AT&T or Verizon Wireless. Where does this leave Sprint?]

By Michael J. De La Merced and Jenna Wortham (DealBOok - NYT) -- "With AT&T now adding T-Mobile’s 33.7 million subscribers to its fold, hardware makers could lose interest in creating products for companies other than the biggest players. Sprint may find it difficult to add cutting-edge new handsets.

A larger AT&T could also strike better prices for the handsets it sells, which would allow it to expand its profit margins or reduce the prices on its products.

Sprint is likely to be forced to compete more aggressively on price to differentiate itself and attract new subscribers.

“This puts them into a much weaker No. 3 position,” Mr. Golvin said."


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