Skip to content
Subscriber Only

AT&T’s T-Mobile Purchase May Crimp Margins for Ericsson, NSN

AT&T Inc.’s $39 billion agreement to buy T-Mobile USA from Deutsche Telekom AG may spell fewer orders and thinner margins for Ericsson AB and other telecommunications-equipment suppliers.

“Any merger of this magnitude would mean some capex will be pushed back short term on uncertainty,” said Haakan Wranne, an analyst with Swedbank in Stockholm. “And when two operators merge into one, the capex cake will not grow long-term.”