Home » AT&T »Competition »Cricket »MetroPCS »Public Policy & Gov't »Sprint »T-Mobile »Verizon »Wireless Broadband » Currently Reading:

Moody’s Declares AT&T and Verizon the Winners — Sprint and T-Mobile Can “Never Catch Up”

Phillip Dampier February 15, 2012 AT&T, Competition, Cricket, MetroPCS, Public Policy & Gov't, Sprint, T-Mobile, Verizon, Wireless Broadband No Comments

Game over. In the championship of cell phone competition, Verizon Wireless and AT&T have won, and it is now too late for Sprint-Nextel or T-Mobile USA to catch up.

That is the conclusion of Moody’s Investors Service, who has determined competition in waning in the U.S. wireless marketplace.

“AT&T Mobility and Verizon Wireless have better network coverage, wider capabilities and wider profit margins which gives them a competitive advantage that smaller rivals just can’t match,” said Mark Stodden, a Moody’s analyst and author of the report. “It is too late for competitors to invest and catch up; Sprint has the willingness but not the ability, while T-Mobile’s parent Deutsche Telekom, is the opposite.”

Sprint’s ambitious plans for a new 4G LTE network have been suppressed by a lack of enthusiasm by Wall Street investors and bankers, who seem to prefer the much-larger AT&T and Verizon who can sustain increased pricing and are better credit risks.  T-Mobile USA has practically been abandoned by its parent owner Deutsche Telekom, which wants to focus its investments in larger markets in Europe.

Moody’s estimates AT&T and Verizon will account for 81 percent of industry earnings in 2011.  Wall Street has pressured Sprint and T-Mobile to seek consolidation to better withstand their larger competitors.  Before AT&T bid for T-Mobile, rumors of an acquisition of the German-owned company by Sprint-Nextel were common, although the two companies operate with different network technology.  Moody’s predicts troubled waters for Sprint if it should actually seek to acquire T-Mobile, because the FCC seems comfortable with a minimum of four national carriers.

Instead, Moody’s predicts Sprint will seek to acquire smaller regional carriers and prepaid providers like Leap Wireless’ Cricket and MetroPCS.  Neither acquisition would significantly improve Sprint’s service footprint, however, as both prepaid providers operate only in larger markets where they already co-exist with Sprint.

Search This Site:

Contributions:

Recent Comments:

  • Soclikes: Today is already normal to buy something to watch TV...
  • King Cappy: Pro sports are dead to me. Too much emphasis on the political causes. Just play the games and keep your opinions and your tears to yourselves.You're a...
  • CoxSux: Just pure greed from Cox while people are out of jobs and kids attend online schooling. Garbage Cox....
  • jimmy: This it what happens when a monopoly is formed - New customers get the deals and old time customers get bent over - A satellite needs to be launche...
  • Cheryl: If they are concerned about people dropping cable maybe they should make it more affordable than the streaming options. I have reported them twice to...
  • Paul Houle: 20 seconds if your laptop has an Ethernet cable. The one I am typing on now has one, but my late-model Dell laptop from work doesn't. You can get...
  • just me: It take about 20 seconds to plug an ethernet cable into your laptop. If you are that lazy you are getting the service you deserve....
  • just me: You are lucky, that is one if 4 locations in the state that will get fiber. It is a lot more reliable....
  • Ian L: People will pick this up as an alternative to satellite, slower fixed wireless ISPs, and sometimes DSL, depending on price sensitivity, whether they h...
  • Rebecca: I like this idea Eric. I'd like to do this too but I also want to take the high road and just go through with a class action lawsuit. Spectrum's actio...
  • DCUNY: Submitted my letter this morning...
  • Matthew Smith: Wow. I had no idea. Kind of exciting, I suppose 🤷 We have a computer company, best to see what's always being offered by ISPs....

Your Account:

Stop the Cap!