MobilePCS (PCS) Deal Makes T-Mobile Pre-Paid Mobile Juggernaut
Tweet
Share
E-mailGet Alerts PCS Hot Sheet
Join SI Premium – FREE
As the smoke around the T-Mobile/ MetroPCS (NYSE: PCS) deal clears, investors are taking time to reexamine the effects the acquisition will have on the mobile market. So far the tone is positive, and most see T-mobile becoming a stronger competitor to Verizon (NYSE: VZ) and AT&T (NYSE: T). However, one area that is sure to see changes is low cost no-contract market, which is experiencing a major consolidation as a result of the merger.
Baring any complication that could scuttle the deal, T-mobile, Sprint (NYSE: S), and America Movil S.A.B. de C.V. (NYSE: AMX) will now rule the roast in prepaid, controlling three-quarters of the market. Overall, the number of prepaid customers in the U.S. is increasing, in part because of lower prices that attract penny pinchers. However, some watchers think the reduced competition may eventually lead to increased prices in this sector of the market.
Baring any complication that could scuttle the deal, T-mobile, Sprint (NYSE: S), and America Movil S.A.B. de C.V. (NYSE: AMX) will now rule the roast in prepaid, controlling three-quarters of the market. Overall, the number of prepaid customers in the U.S. is increasing, in part because of lower prices that attract penny pinchers. However, some watchers think the reduced competition may eventually lead to increased prices in this sector of the market.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Verizon prepares network for potential tropical storm; Customer relief through August 31
- This consumer stock is trading at "discounted valuation", Morgan Stanley says
- Stars are aligning for this China AI stock: Barclays
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
