Share
Explore BrainMass

Busines Analysis of Possible Sprint-T-Mobile Merger

This assignment address the possible benefit of to shareholders of T-Mobile and Sprint in a possible merger of the two companies. It also examines some of the considerations that need to be examined before making a decision.

Solution Preview

The possibility of a merger between wireless providers always provides is always filled with questions concerning the viability of the newly formed company. Considerations have to be taken into consideration that go well beyond increasing the newly formed companies subscriber base. Compatibility of technologies, wireless regulations, synergies between each carriers licensed markets, upcoming technologies, and the financial health of each carrier play a major role in determining the feasibility of a potential merger between wireless carriers. Over the recent years, the United States have seen successful mergers between AT&T and Cingular Wireless, now AT&T Wireless. We've also seen a successful merger between Bell Atlantic and GTE Mobilnet, now Verizon Wireless. Both AT&T and Verizon went through pain staking steps to merge technologies, divest licensed markets that were seen to inhibit competition by the department of justice, and merger human resources. The foundations of both of these mergers lie in the fact that participants in the Verizon and AT&T merger had synergies that would make the combined companies better than if they were to remain stand-alone companies. The wireless market now dictates that mergers need to be considered in order for a carrier to remain ...

Solution Summary

This assignment address the possible benefit of to shareholders of T-Mobile and Sprint in a possible merger of the two companies. It also examines some of the considerations that need to be examined before making a decision.

$2.19