There's a lot of posturing and ego-inflating at the very highest levels of the US' wireless industry; AT&T had been the biggest provider until
Verizon swooped in and bought Alltel, and we imagine that the new number two has been plotting its counterattack ever since. Of course, this kind of endless tit-for-tat acquisition game is an
Alien vs. Predator-style "whoever wins, we all lose" scenario, since the end result is inevitably less competition and more Big Wireless (we just coined that term, and yes, you're free to use it). Anyhow, the popular buzz today is that AT&T is taking a serious look at Leap Wireless -- which owns the Cricket brand, the regional that's offering $40 / month unlimited -- on account of both companies mysteriously canceling appearances at a pair of investment conferences over the next week. It's mega-speculative at this point, but the move would certainly make sense considering the overwhelming popularity of cheap unlimited plans right now and AT&T's presumed desire to get back in the king's throne, wouldn't it?
Reader Comments (Page 1 of 1)
iansltx @ May 21st 2009 3:13PM
That would take a *lot* of work to meld the two carriers together...
CricKet uses 1700MHz and 1900MHz CDMA networks with some EvDO sprinked here and there. AT&T is 850 and 1900MHz GSM/WCDMA/HSPA.
Sure, they're both thinking about LTE, but probably not soon enough to avert a train wreck if AT&T buys Leap.
Besides, AT&T's equivalent unlimited plan costs 3x what CricKet's does.
Last but not least, AT&T would have to buy Leap AND MetroPCS to get back to #1 in this wireless dogfight.
And no, I don't want unlimited carriers going away AT ALL. Though if Leap and MetroPCS, which mostly have diverse coverage footprints, were to merge, i'd be down with that.
Peter F @ May 21st 2009 4:04PM
ditto to iansltx
http://en.wikipedia.org/wiki/Cricket_Wireless
xman @ May 21st 2009 4:42PM
@ iansltx
You make very valid points regarding the combination of AT&T and Leap. However, I don't think they are concerned with the integration nightmare your refer to.
AT&T runs the risk of bleeding customers to low level carriers without a similar offering to compete on that level. Sprint sort of lucked out, and will uses Boost Mobile to compete. Verizon will also have any issue over time. The Cell phone market is completely saturated right now. The last thing AT&T wants is to get into that low level price war. So a good counter attack would be to buy Leap or any other rapidly growing low cost provider. Otherwise if these small guys get too big, they will cost too much in the future and would have stolen a chunk of marketshare.
There is a cost of doing nothing!
Jerryanne @ May 21st 2009 5:23PM
I hope the current administration would not allow any more of acquisitions by the top two largest carriers in the US.
All ATT is trying to do is kill their competition before it takes a bigger bite out of its wallet. This is not in the interest of the consumer.
Even the iPhone didnt' give ATT the most wireless net adds for last quarter among the top 4 so I'm sure they're starting to feel the heat even if ever so slightly.
Tom_in_ATL @ May 21st 2009 6:10PM
This sounds like rumors that are unfounded or someone trying to boost some stock prices with unfounded rumors.
Big Guys:
AT&T: uses GSM Technology
Verizon: uses CDMA technology
T-Mobile uses GSM technology
Sprint: Uses CDMA and IDEN technology
Besides AT&T, Sprint, T-Mobile and Verizon you have:
US Cellular (www.uscc.com) uses CDMA technology
Southern LINC (www.southernlinc.com) which uses IDEN so it only makes sense as a Sprint buy.
MetroPCS (www.metropcs.com) uses CDMA technology so it only makes sense as a Verizon or Sprint buy or a merger with Leap/Cricket.
Cricket/Leap (www.mycricket.com) uses CDMA technology so it only makes sense as a Verizon or Sprint buy or a merger with MetroPCS.
MNVOs:
Virgin Mobile, Quest Wireless (www.questwireless.com) and Boost Mobile use Sprints Network.
Tracphone uses everyone.
boshawk @ May 21st 2009 10:01PM
Article makes assumption that buyout would pass goverment regulators. MetroPCS and Leap would pass muster, while AT&T and leap would not. I would guess AT&T would try to buy US Cellular for 850mhz spectrum and divest 1900Mhz spectrum that government will surely dictate.
Luke @ May 22nd 2009 12:42AM
I doubt it would happen, but it could, When verizon had to divest its markets, for the Rural Celluar company, they sold to AT&T< verizon has those markets for the next 12 months of supporting. AT&T will be hopefully completing the conversion (CDMA to GSM) in 4Q 2009, its in the internet, it can be done, Converison of those CDMA to GSM will be done. But in all realtiy, its mostly likely that Tom in ATL is right, it would make more sense for other companies with crappy CDMA technology to buy it out.
Crunch @ May 22nd 2009 5:37AM
Stop this silliness and build TOWERS! I get -70dBm, so I'm not complaining, but needless to say, not everywhere. Also, focus on LTE, AT&T. I love th e Big Blue, and abhor the Big Red.
HAPPY TO BE w/ the #2 wireless carrier in the United States. 10 years and going no where. :)
bigbolden @ May 22nd 2009 11:49AM
Why not Att and Tmobile Merge....That wouldmake a 3g/LTE rollout much more simple.......makes sense to me, I'm just waiting on this one. Plus ATT would have a wonderful 3g footprint on two bands....
boshawk @ May 22nd 2009 9:11PM
Government will not let AT&T merge with T-Mobile. T-Mobile will likely merge with TW Cable or Comcast for quad play strategy.