The U.S. cellular phone industry is poised for a wave of consolidation that could shrink the market from six national players down to as few as three next year
Published:
6 August 2002 y., Tuesday
The wireless carriers are pouring billions of dollars into network upgrades to deliver high-speed data connections in the years ahead. But with nearly half of all Americans already signed up for a wireless plan, industry observers say the market may not be growing fast enough to support six big carriers.
Now, a major barrier to consolidation is about to fall as the Federal Communications Commission prepares to lift limits on how much of the cellular airwaves any one carrier can control. The move is expected to trigger a flurry of mergers.
For consumers used to cut-throat competition and falling wireless prices, mergers won't mean major changes because there will still be multiple carriers vying for their business. But for an industry that is barely profitable and struggling under huge debt loads, consolidation could be a lifesaver, analysts say.
Germany's Deutsche Telekom is reportedly looking to sell its U.S. wireless arm, VoiceStream Wireless. And both AT&T Wireless and Cingular Wireless, a joint venture of SBC Communications and BellSouth, are seen as likely suitors because all three use GSM (Global System for Mobility) and GPRS (General Packet Radio Service) technology. VoiceStream already has a joint venture with Cingular to share systems in California, Nevada and New York.
Šaltinis:
Mercury News
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
An aviation agreement has been signed today by the European Union and the Vietnamese authorities which will remove nationality restrictions in the bilateral air services agreements between EU Member States and Vietnam.
more »
The European Investment Bank marked the 50th anniversary of the Republic of Cyprus and its 30 years of activity in the country with a public ceremony celebrating the signature of a total of EUR 180 million for urban environment.
more »
In response to the financial crisis, the Commission has put forward legislative proposals to strengthen and expand existing tools for coordinating economic and fiscal policy in the EU.
more »
In the first meeting of the SME Finance Forum, possible means to improve the current situation of access to finance were discussed, such as the introduction of a grace period for firms in difficulties, the involvement of credit mediators and improved loan guarantees.
more »
The EU budget is no simple matter, but then no budget ever is.
more »
Parliament will be crucial in avoiding a “lowest common denominator” approach when helping to design the EU's new economic governance architecture, ECB president Jean-Claude Trichet told the Economic and Monetary Affairs Committee on Monday.
more »
With a multitude of language-related events taking place on or around 26 September, the main themes for this year's European Day of Languages are business and jobs.
more »
The EU disbursed today € 1.15 billion to Romania, the third instalment of a € 5 billion loan, which was agreed in May 2009 as part of a multilateral financial assistance package.
more »
The European Investment Bank has agreed to lend GBP250 million for the replacement, reinforcement and expansion of the gas distribution networks operated by Scotland Gas Networks and Southern Gas Networks.
more »
The bargaining positions of all players in the human food chain must be rebalanced, and fair competition enforced by law, to ensure fair returns to farmers and price transparency to consumers, says Parliament in a resolution voted on Tuesday.
more »