& cplSiteName &

AT&T/T-Mobile: Happy Xmas, Gear Vendors!

Dan Jones
12/20/2011

10:40 AM -- AT&T Inc. (NYSE: T) and T-Mobile US Inc. have finally bowed to the obvious and called off the $39 billion slow train wreck of a merger.

It is possible that consumers that like cheap data plans (and, who doesn't?) could soon see the benefit as T-Mobile slashes prices in a bid to get back some lost market share. As analyst George Notter points out, however, infrastructure vendors are likely to be among the people that get happy right away because the deal is off.

The Jefferies & Co. Inc. analyst writes in a research note Tuesday that AT&T "had significantly dialed back Q4 spending in order to apply leverage in its fight with regulators." He expects that vendors could even start to see Ma Bell's spending speed up in the last part of the year and definitely increase early in 2012:

    Our most recent industry checks suggested that AT&T capex spending would pick up in mid-Q1. Moreover, we understand that some vendors have forecasts and orders from AT&T that indicate an extremely strong Q/Q increase in spending in Q1. Further, we expect that AT&T will be fairly aggressive in their spending in 1H’12.


Capex beneficiaries could include Adtran Inc. (Nasdaq: ADTN), Alcatel-Lucent (NYSE: ALU) and Juniper Networks Inc. (NYSE: JNPR).

T-Mobile had already "picked up their spending modestly in recent weeks," Notter notes. Once again, he expects the carrier to make up for lost time in 2012.

Of course, a bunch of vendors likely now wondering if there's a decent-sized T-Mobile Long Term Evolution (LTE) contract in their future. I'm also trying to figure out what T-Mobile's path to LTE is now.

I have to wonder if T-Mobile could follow Sprint Corp. (NYSE: S)'s lead and pull a multi-modal basestation strategy that supports both 3G and LTE on its AWS footprint now that it has additional spectrum from AT&T.

What's your take?

— Dan Jones, Site Editor, Light Reading Mobile

(4)  | 
Comment  | 
Print  | 
Related Stories
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
joset01
joset01
12/5/2012 | 4:46:00 PM
re: AT&T/T-Mobile: Happy Xmas, Gear Vendors!


AT&T was already spending, what, $20B in 2011? Up another billion or so in 2012?

comtech3
comtech3
12/5/2012 | 4:45:58 PM
re: AT&T/T-Mobile: Happy Xmas, Gear Vendors!


That should be jumped ship,but may be the pun could stay as jump shit!

comtech3
comtech3
12/5/2012 | 4:45:58 PM
re: AT&T/T-Mobile: Happy Xmas, Gear Vendors!


God is good! When AT&T  took over Cingular Wirelss, they had promised a lot of goodies that they did not deliver,and that led med to jump ship.I was once a T-Mobile sub until I heard of the impending merger, I jumped shit again.AT&T service is terrible and most of all, their customer service! Case in point, when they had bought MediaOne to become the #1 cable company, named AT&T Broadband, the service was so awful that they started to lose subs left right and center,and they ended up selling AT&T Broadband to Comcast.And they're not faring too well with U-Verse either,and may curtail further deployment in areas that don't have it much the same as Verizon has done.Now T-Mobile customers can sigh when some relief that that is over.

DCITDave
DCITDave
12/5/2012 | 4:45:55 PM
re: AT&T/T-Mobile: Happy Xmas, Gear Vendors!


We'll leave it. Accidental humor is just adorable.


 


ph

More Blogs from Jonestown
Amazon, Apple and Google come to a connected home deal, carriers not invited!
Amazon readies its low-power protocol Sidewalk for long-term IoT and smart home projects.
The iPhone 11 is carrying an ultra wideband (UWB) chip that has its supporters excited about new applications.
The real impact of low-band 5G? It will work better indoors!
Verizon has led the way with early high-band, millimeter-wave 5G, but the carrier faces lots of questions about how it can deploy 5G on low- or mid-band frequencies nationwide next year.
Featured Video
Upcoming Live Events
March 16-18, 2020, Embassy Suites, Denver, Colorado
April 20, 2020, Las Vegas Convention Center
May 18-20, 2020, Irving Convention Center, Dallas, TX
May 18, 2020, Hackberry Creek Country Club, Irving, Texas
September 15-16, 2020, The Westin Westminster, Denver
All Upcoming Live Events
Upcoming Webinars
Webinar Archive
Partner Perspectives - content from our sponsors
Challenges & Key Issues of Constructing 'MEC-Ready' 5G Bearer Networks for Carriers
By Dr. Song Jun, Senior Solution Architect, Huawei Datacom Product Line
Good Measures for 5G Service Assurance
By Tomer Ilan, Senior Director of Product Management, RADCOM
Automation Scores Against Operational Costs – The Business Benefits of Automation and Orchestration
By John Malzahn, Senior Manager, Service Provider Product Marketing, Cisco Systems
All Partner Perspectives