Verizon has owned these 700 MHz licenses for six years but never found a use for them. One’s man trash is another’s treasure. By buying these licenses T-Mobile can build an LTE network more like Verizon’s.
AT&T isn’t against Softbank taking over Sprint. Ma Bell just wants to get something out of the deal, according to Public Knowledge’s Harold Feld. Also Sprint’s buying a majority stake in Clearwire doesn’t give it the direct control of the 4G operator that we thought.
There may be more to Apple’s new deal with Leap Wireless than meets the eye. Apple could be using Leap as a guinea pig carrier to test if American consumers are ready to pay full price for their iPhones, according to a BTIG analyst.
In the wake of its failed acquisition of T-Mobile USA, analysts are speculating where AT&T can find enough spectrum to keep pace with Verizon Wireless. But instead AT&T should be scrambling to ensure that it makes the most of the spectrum it does have.
Mobile is buzzing about TracFone’s new, unlimited prepaid plan for $45 a month. Pali Capital analyst Walter Piecyk said TracFone’s expansion is bad news for competitors Leap and MetroPCS, while Soleil Securities said a recent sell-off has created buying opportunities for the two TracFone rivals. The cutthroat price war is creating instability in mobile and threatens to bleed into the postpaid market. We’re still seeing real subscriber growth in prepaid, but profits will be much harder to come by as the battle continues.