But T-Mobile USA's exit could also cause some heartburn for its suppliers.
Here's a quick look at who might be affected, keeping in mind that some of these changes might be very slow to unfold.
And Analyst Michael Genovese of MKM Partners points out that AT&T's IP and optical vendors -- Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (NYSE: JNPR) for IP, Ciena Corp. (NYSE: CIEN) for optical -- could benefit from network growth as AT&T accommodates 33.7 million additional T-Mobile USA users.
For the time being, T-Mobile USA will probably continue its backhaul buildout for High Speed Packet Access Plus (HSPA+) services, so doomsday might take a while to arrive. (See MWC 2010: T-Mobile Boosts Backhaul.)
LightSquared would have plenty of other places to turn, such as MetroPCS Inc. (NYSE: PCS), Sprint or the U.S. cable operators. Even so, T-Mobile USA's disappearance would make LightSquared's viability "a bit more uncertain," Notter writes. (See Which Carriers Is LightSquared Working With? and LightSquared Grabs More Spectrum, Customers.)
For more
You have heard AT&T is buying T-Mobile USA, right ...?
- AT&T to Buy T-Mobile USA for $39B
- What Happens to Sprint After AT&T/T-Mobile Merger?
- Could AT&T/T-Mobile Deal Mean an HSPA+ iPhone?
- AT&T/T-Mobile: Riddled With Regulatory Risk
- DT's Shares Rocket on AT&T Deal
- Cable Could Lose Wireless Bargaining Chip
— Craig Matsumoto, West Coast Editor, Light Reading
Here's a statement from Nokia Siemens, emailed to us this a.m., about its positions with AT&T and T-Mobile, including the ongoing work with the latter.
"We acknowledge the announcement of the agreement between Deutsche Telekom and AT&T for AT&T to acquire T-Mobile USA as a sign of the dynamism and vitality of our great industry.
"Nokia Siemens Networks is proud to be a supplier and partner both of AT&T and of Deutsche Telekom – both in Europe and in the US – and we support our customers in the strategic moves they intend to make. We recognise that the deal requires regulatory approval and will continue to offer AT&T and Deutsche Telekom the same level of service and support, regardless of the outcome of the regulatory review.
"As a leader in both LTE and providing smart networks, we believe we have a significant opportunity to help American operators deal with the unique demands of smartphones and tablets. This deal does not diminish that belief.
"Our business with T-Mobile USA: we are currently working with T-Mobile US on projects including the standardisation of Long Term HSPA Evolution, supporting speeds up to 650 Mbps. Nokia Siemens Networks is a strategic radio partner to T-Mobile US. We supply around half of the 3G/HSPA network and a little under half for 2G. We are a sole supplier for Subscriber Data Management, SGSN Core and Performance Management services.
"Our business with AT&T: about half of AT&T's 2G network was built by Nokia Siemens Networks. Today, we are a supplier to AT&T in optical transport (DWDM), network implementation and care services."
I know this is off-topic, but: interesting that they mention the optical part. Nokia Siemens reportedly wasn't picked as an optical domain supplier but told us that wouldn't stifle all their chances in AT&T's optical network:
http://www.lightreading.com/document.asp?doc_id=190226