VoiceStream Wireless is becoming the catalyst for GSM carrier consolidation in the United States. VoiceStream and Omnipoint Communications in June announced plans to merge in a deal valued at US$1.7 billion, ending Omnipoint’s search for a strategic partner that dragged on for more than a year.
It was only a matter of when, not if, industry commentators always have said of GSM-player consolidation. Economies of scale, cost, revenue generation and purchasing power is fast making regional operators obsolete, say analysts.
VoiceStream’s largest shareholder, Hong Kong’s Hutchison Telecom, will make a cash investment of US$957 million in the combined company, giving it a 30-percent stake in the new company.
