Strategy Analytics: 4G and AT&T/T-Mobile Deal Dominates US Wireless Carriers

Further Consolidation in World's Largest 4G Market

BOSTON--(BUSINESS WIRE)-- The expected completion of T-Mobile USA being acquired by AT&T will only be the first of several carrier consolidations to shape the US 4G landscape. As rivals look to catch up with the early LTE lead of Verizon Wireless, Sprint will dictate the viability of wholesale ventures at LightSquared and Clearwire. The Strategy Analytics Wireless Operator Strategies (WOS) service report, “US Wireless Market Outlook 2011-2016,” forecasts that LTE will account for half of all wireless connections by 2016.

Strategy Analytics foresees success for AT&T in its acquisition of T-Mobile, though concessions will need to be made. AT&T will need to work hard to turn around T-Mobile’s stagnating operations and marry the two distinct brands. The additional market concentration will raise the stakes in an increasingly cost-conscious carrier landscape, but also offers opportunities for AT&T’s rivals.

“This is not going to be a simple rebranding exercise for AT&T, it will require considerable skill to retain T-Mobile customers over the next two years,” comments Phil Kendall, Director of Wireless Operator Strategies. “A strong 4G smartphone focus will help to keep Verizon and Sprint at bay. More significantly, smaller carriers and MVNOs, such as MetroPCS, Leap Wireless and Tracfone, will widen their assault on the more price sensitive customers of T-Mobile.”

Sue Rudd, Director of Service Provider Analysis, adds, “The strong 4G dynamic in the US – driven by PC, modem and consumer electronics subscription growth – will rapidly broaden opportunities in this market. To meet demand, carriers must address not only network coverage and quality but also deficiencies in data pricing in order to support the needs of users with multiple devices.”

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit http://www.strategyanalytics.com/.

CONTACT:

Strategy Analytics, Inc.
US Contact:
Sue Rudd, +1 617 614 0709
srudd@strategyanalytics.com
or
European Contact:
Phil Kendall, +44(0) 1908 423 620
pkendall@strategyanalytics.com

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:   Technology  Telecommunications  Mobile/Wireless

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