Will Telecom Consolidation Lower Your Bills?

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June 5 (Bloomberg) -- Moffettnathanson Senior Analyst Craig Moffett discusses mergers and acquisitions in the telecom industry on Bloomberg Television's “Bloomberg Surveillance.” (Source: Bloomberg)

This morning there's a 10% likelihood washington will say no.


Good morning.

I think everybody is racing to get their deals in front of the doj and the fcc.

At the same time, the doj and sec are reviewing comcast and time warner cable and not at&t and directv.

-- and now at&t and directv.

They think they have a better chance regulatory lead to have all these deals considered at once.

If you think about the politics of this, it will be very hard for either the fcc or doj to approve all three deals, it look like they were asleep at the switch.

Or reject all three, they will look obstructionist.

They will have to pick and choose.

It looks likely the odd man out will be sprint-t-mobile.

Craig moffett, explain why my cable tv bill or phone bill will not go up.

Indicates of sprint and t-mobile, they are trying to make a relatively novel argument . which is that they will be a "super maverick." hyper aggressive with price cutting.

That is a very difficult sell to the department of justice.

Thank you.

Every bit of history and microeconomic theory will tell you that more concentration leads to higher prices, not lower prices.

Explained the difference.

U.s. airways-american airlines was going to the doj and said we need to combine in order to compete with united and delta.

What is the difference between that, going from 423. -- from 4 to 3. softbank and t-mobile coming together to compete against at&t and verizon.

It was not truly four to thre e, you have southwest and jetblue.

You really have to look in that case at individual city pairs.

When the doj got right down to it and said ok individuals city pairs, are we going to win that on appeal, it is difficult they are say -- it is called to say they are foreclosing on individual city pairs.

So they eventually settled.

In the wireless market you have a truly national market.

The idea somebody can emerge in a local market to provide competition is not credible.

Do you buy, hold, how do you play this?

In the case of t-mobile, i don't think there's that much froth in the stock related to that much deal.

Our calculations say there's a relatively small premium and a small expectation that this deal will close.

In sprint, verizon huge expectation this deal will successfully close, with huge upside.

Sprint will be very overvalued and t-mobile looks to be pretty attractively valued.

It is a very funny distinction being made.

Thank you so much, craig moffett, we appreciate that, with muffin nathanson.

15 minutes away from the ecb's announcement.

That is the one everyone has been looking ahead to.

1.3606. futures not moving that much, everything is waiting.

The 10 year yield, this is where we haven't seen the impact of anticipation of the rate cut -- have seen the impact of

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


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