“The recent Wall Street Journal report that Sprint will begin selling the new Apple iPhone in October of this year has sent waves through the telecom industry and ironically Sprint may not be the biggest beneficiary,” Trefis Team writes for Forbes.
“Although this deal will help Sprint gain more subscribers and reduce churn, it could be dilutive to its margins due to the higher subsidy costs associated with the iPhone,” Trefis writes. “Additionally, the deal could have significant implications for AT&T’s proposed $39 billion acquisition of T-Mobile which would vault AT&T ahead of Verizon as the largest wireless player in the U.S.”
Trefis writes, “AT&T has argued that the proposed acquisition of T-Mobile would not limit competition and disrupt innovation in the telecom market, but rather improve its service in a bid to provide 4G service to its customers. If Sprint does land the iPhone this year, AT&T can make a case that Sprint’s competitive position may actually improve, indicating that there is plenty of competition in the U.S. wireless market.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]