Wednesday, March 23, 2011
Gotta Cell "Phone"?
T-Mobile hired a cute actress and has produced a bunch of cute commercials, most of which are making fun of AT&T. Enter deal-making in the telecommunications industry. T-Mobile's parent company has agreed to sell T-Mobile to AT&T for the modest sum of 39 billion dollars($39,000,000,000). This would make America's telecommunications industry basically a two-player complex, namely AT&T and Verizon. And there is the fly in the ointment, for the deal has to be approved by the Justice Department. (Is anyone out there old enough to remember the old AT&T, aka "Ma Bell"?) Will it fly? It will be fun to watch. If the deal falls through, AT&T must still pay three billion dollars to the holder of T-Mobile.
Now I observe that the commercials are still running.
Will there be an expanded AT&T with T-Mobile's infrastructure and spectra?
Will AT&T get the T-Mobile girl in the deal?
Will there be, alternatively, a T-Mobile ipo?
Who, ultimately will get the plum in this pudding? (If you are betting the consumer, I suspect you have a very limited view of the way the world works.)