Boston, MA 06/02/2014 (wallstreetpr) – AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) each control 34 percent of the entire U.S. mobile market share. The latest development signals improvement on the side of AT&T Inc. The two telecom operators control the biggest share of the U.S. mobile market.
The other top players namely Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) each control 16 and 14 percent of the entire U.S. mobile market, respectively. The two telecom operators are seeking a tie-up in a move that would reduce the number of top U.S. carries to three and lead to greater competition in the market.
SoftBank, the Japanese owner of Sprint (NYSE:S), is expected to make a bid for T-Mobile US Inc this month or the next one. According to SoftBank the combination of the two mobile operators would reduce the dominance of AT&T Inc and Verizon and thereby improve the quality of services and lower costs for the benefit of the consumers.
Big battle shaping up
A big telecom battle is shaping up in the U.S. mobile market. Verizon is not expected to take the latest data that show it neck-to-neck with AT&T Inc kindly. Furthermore, besides the top two giants, T-Mobile recently added more wireless subscribers to its network than any of its three rivals. That development could open up a big war as the carriers put their best foot forward to attract more subscribers to their network.
AT&T Inc. (NYSE:T)’s progress that saw it matching Verizon in the mobile market was supported by acquisition, network upgrade and rollout of attractive wireless services that mostly hinged on favorable pricing.
The past few months saw AT&T Inc. (NYSE:T) and its peers are cannibalizing one another with lower rates and at some point analysts worried that the going would get tough for the carriers because price compromises have a negative impact on the bottom-line.
AT&T attempt diversification
Although AT&T Inc. (NYSE:T) has shown its business prowess by matching wireless giant in the mobile segment, the company is not putting all its eggs in one basket. The company’s attempt at diversification became clear in the past month when it announced $48 billion purchase proposal for the satellite TV provider DirectTV (NASDAQ:DTV). Pay TV is becoming a lucrative industry and AT&T Inc believes it can maximize shareholder value through investment in the industry.
