ORLANDO, Fla.—AT&T Mobility’s (T) proposed acquisition of T-Mobile USA Inc. (DTEGY) is the merger that makes most sense because it is an impressive combination that can serve the American people, contributing to President Obama’s goal of giving more Americans broadband access, said Roger Entner, CEO and analyst at Recon Analytics.
AT&T committed to bringing LTE technology to 95% of Americans as part of its planned purchase, 47 million more than they would have done without this merger, and is close to the administration’s goal of 97% broadband coverage for the United States. It gets expensive to deliver broadband access to rural America. “The question is who will pay for it,” Entner said. In this case, AT&T is committing to contributing a great portion to the goal.
The potential deal can also be good news for Sprint Nextel Corp., (S) Entner suggested, because it solidifies its characterization as the value leader. Clearwire Corp.’s (CLWR) destiny lies in its own hands, Entner said.
@ CTIA: AT&T tie-up with T-Mobile helps solidify Sprint Nextel, Entner says
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