Does a T-Mobile Acquisition Make Sense for Sprint?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Feb. 11 (Bloomberg) -- The Kerton Group Principal Analyst Derek Kerton discusses the telecom industry on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Council.

Before we get to the big issue about the potential merger, let me get your thoughts on the earnings.

What a lot of analysts expected.

A very difficult time for them to bump up earnings when they are losing subscribers on a regular basis.

That is the crux of it for analyst like me.

You guys look at the earnings from the numbers and revenue.

I am looking at subscribers.

That is the basis on where you will be growing revenues going forward.

It is a lot better than it has been, but one of the problems they are having as their caught in a pinch.

You have at&t and verizon on the top side giving the marquee customers that want the widest nationwide covering.

Below sprint coming of the t-mobile's that are present in themselves is the one carrier -- un-carrier/ . then you have a wide range picking up consumers.

Of sprint in between the two sides.

They're not the marquee side and they are not the low side.

Is it just a dopoly?

Do we just wait for verizon and at&t to dominate?

I wish i could say was in, but there is a very real concern.

Those two companies have good strategic decision going forward.

We look at the carriers who have fixed assets and mobile asset is having a strategic advantage.

Security monitoring, media services, overlapping between home and mobile -- companies like t-mobile and sprint are not able to offer those quite as well as at&t and verizon.

What about the spectrum advantage?

I think that is one of the biggest differentiators if they can register -- leverage it long-term.

They have the most overt two ghz.

They can continuing -- continue offering unlimited bandwidth.

They can offer faster speeds long-term than some of the other carriers.

I think that is the main competitive advantage that they have got to work on.

At&t and verizon dominate wireless markets with over 50% market share if you add them together.

It looks like the department of justice will not allow this merger between sprint and t-mobile.

What is the future for sprint and t-mobile if they have to go at it alone?

It is very difficult.

Deutsche telekom is interested in merging with softbank, t-mobile and to one competitive competitor.

The department of justice feels very strongly that t-mobile is doing a good job.

They want to keep it independent so it can keep wishing limits down there.

That does not look good for sprint.

Thank you for joining us from

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change