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Summary:

MobileTracker points to a Wall Street Journal story which says that Verizon has gotten a thumbs up from partner, Vodafone to make a hostile bid for Sprint. If it happens the deal could make combined Sprint-Verizon the largest mobile carrier in the US with 65 million […]

MobileTracker points to a Wall Street Journal story which says that Verizon has gotten a thumbs up from partner, Vodafone to make a hostile bid for Sprint. If it happens the deal could make combined Sprint-Verizon the largest mobile carrier in the US with 65 million customers. The two use the CDMA technology and have laid out aggressive paths for an EV-DO upgrade. The Journal says that the deal is not going to pass the regulatory muster. I have a feeling Verizon is trying to slow down the deal between Sprint and Nextel, more than anything. But as they say, it ain’t over till the fat lady sings. If Sprint and Verizon hook-up, Nextel’s only partner would be T-Mobile, which means by doing nothing, T-Mobile might actually be in a good spot.

  1. Om,

    I think you are right on the money.

    VZW can look at a calender just like everybody else. If Cing-AWE took 9-10 months, then a proposed PCS-Nextel might piggyback on the same core research and perhaps take 8-9 months?

    What is important for VZW, re:PCS-N, is to delay this deal such that a new PCS-N would miss the 2005 X-Mas selling season.

    Lets remember that during a merger, a whole set of legal and contractual obligations befall the parties. One of the contractual obligations would be the standard MAC clause. (material adverse change)

    Thus a delay in the PCS-N merger means that the MSOs are locked out of any deal (except lowly T-M) for another year. This buys the RBOCs time to advance on the Video front.

    You gotta think that Cingular is pulling for a VZW-PCS bid, just to frustrate things. Regulatory approval? Who cares.

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  2. Om,

    You should be a little more careful before putting a title like that on a piece. A bid hasn’t been made quite yet; WSJ just reported that Verizon had gotten the go ahead from Vodafone.

    Which Vodafone, incidentally, denied, not that even that means anything.

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