MobilePCS (PCS) Deal Makes T-Mobile Pre-Paid Mobile Juggernaut
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As the smoke around the T-Mobile/ MetroPCS (NYSE: PCS) deal clears, investors are taking time to reexamine the effects the acquisition will have on the mobile market. So far the tone is positive, and most see T-mobile becoming a stronger competitor to Verizon (NYSE: VZ) and AT&T (NYSE: T). However, one area that is sure to see changes is low cost no-contract market, which is experiencing a major consolidation as a result of the merger.
Baring any complication that could scuttle the deal, T-mobile, Sprint (NYSE: S), and America Movil S.A.B. de C.V. (NYSE: AMX) will now rule the roast in prepaid, controlling three-quarters of the market. Overall, the number of prepaid customers in the U.S. is increasing, in part because of lower prices that attract penny pinchers. However, some watchers think the reduced competition may eventually lead to increased prices in this sector of the market.
Baring any complication that could scuttle the deal, T-mobile, Sprint (NYSE: S), and America Movil S.A.B. de C.V. (NYSE: AMX) will now rule the roast in prepaid, controlling three-quarters of the market. Overall, the number of prepaid customers in the U.S. is increasing, in part because of lower prices that attract penny pinchers. However, some watchers think the reduced competition may eventually lead to increased prices in this sector of the market.
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