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Say what you may about the new 47.6 million subscriber strong Cingular Wireless, it has to feel good to be the #1 player in the fastest growing cellular market in the developed world. Who cares soon Verizon will kick their behind and overlap them, purely because it offers better voice service. Those really dorky “Rocket-Unit” ads, don’t work guys: good voice quality and fewer dropped calls do….. breathe Om… and say… ommmmm! Longer term, the confusion and some problems could prove that “Rocket-Unit” Cingular might end up losing a few million customers before getting back on track. That’s expected in a gargantuan merger like this one.
Actually Cingular-AT&T Wireless merger is a good deal for rest of the industry. Why? Because it mops-up $41 billion in market investments and allows funds and punters to put it to work elsewhere. Oh I don’t know, perhaps Nextel, the only other true rival to these big giants which is still investment worthy? Its problems with Verizon over the spectrum swap issue are over, and the company has the right kind of spectrum to offer real “manly man” type of wireless broadband via Flarion. Some of the investment dollars could flow to Sprint, which is slowly and slowly realizing that its future is wireless and working as a wholesaler for other MVNOs. Alltel, which gets about 60% or so of its sales from wireless could garner some investor interest. So what about T-Mobile you might ask?
Given that the Germans have cleaned house and improved the financials of Deutsche Telekom, them might be buying all those assets Cingular-AT&T have to shed in 30 markets in 12 different states. “It would, therefore, be beneficial for the combined entity to sell off its assets in one go rather than to sell it in parts. T-Mobile is the only big GSM player left with a network across the US, which is hence, capable of buying out the entire ‘to be sold’ assets of the combined entity,” theorize our friends at First Global Research. They could use the damn spectrum to improve the call quality for god sake.