Telecommunication Sector after tthe first quarter of fiscal year 2011-2012

The earnings reports from telecom companies are mostly out and 24/7 Wall St. is busy evaluating the statistics of the seven players in Telecommunication Industry. The seven telecom giants that were closely watched during the first quarter of the fiscal year
2011-2012 included, AT&T, Verizon Communications, Sprint Nextel, Frontier Communications, CenturyLink, Leap Wireless International and MetroPCS.

Overall, the entire telecommunication sector observed a very slow growth in its subscriber base. However, there is a merger expected soon between AT&T and T-Mobile USA, a unit of Deutsche Telekom (DTEGY). If this merger takes place AT&T’s subscriber count
will go far beyond Verizon’s, which is currently ranked second in the subscriber count.

Overall, the telecom sector is not welcoming the change expected soon where Sprint, which is currently ranked third in the subscribers’ count ladder, is expected to object to it the most. Rightly so, because the AT&T’s merger is going to be felt the hardest
by it, which is the reason why it is opposing the proposed merger the most.    

Sprint is falling behind in its struggle to retain subscribers but in order to keep up with the rising standards of market it is creating newer market strategies. According to Sprint’s latest strategy, they are striving to offer iPhone discount packages,
which could compete with AT&T’s lucrative offer for iPhone 3GS for just $49. However, with the merger Sprint will be further away from reaching its goal.

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Posted by sara.anwar on Nov 28 2011. Filed under Business, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry