Congratulations to T-Mobile US and Sprint on finally getting DoJ merger approval. This has been one helluva ride, and it’s not over yet, but we are closer than ever. Now that the deal is done, what comes next? Let’s take a closer look at what we can expect going forward in the wireless industry.
This deal is just one slice of the pie when it comes to changes in the U.S. wireless marketplace. It used to be an industry full of wireless carriers like AT&T Mobility, Verizon Wireless, T-Mobile and Sprint.
Over recent years we have seen other industries move into wireless and changing things. Think of companies like Comcast with Xfinity Mobile, Charter with Spectrum Mobile and Altice with Altice Mobile.
The wireless industry continues to change
Things are continuing to change. We have seen other companies like Amazon and Facebook try to enter wireless and fail. I think we can expect them and other companies to make another try.
DISH Network is a sudden newcomer to the wireless industry. Like DirecTV which was acquired by AT&T along with Time Warner or WarnerMedia, DISH sees the writing on the wall. With the entry of Xfinity Mobile, Spectrum Mobile and Altice Mobile is it becoming obvious if DISH wants to remain a player going forward, they must enter wireless.
Several years ago, DISH acquired wireless spectrum and they must use it or lose it. Since this is a real threat, and since other pay TV companies are also in the wireless business, it makes sense they acquire some of T-Mobile and Sprint wireless assets.
That way T-Mobile and Sprint win since they can complete their merger and DISH also wins, since they can now rapidly move into wireless. We will now watch and see how quickly they will move into the mobile space.
So, the next question is will DISH light off a huge firework display of rapid wireless innovation and growth or will they take a more gentile approach like Xfinity Mobile and Spectrum Mobile?
During the early days there was much speculation about Xfinity Mobile and Spectrum Mobile. Would they rapidly grow? Would they be a fierce competitor?
Xfinity Mobile, Spectrum Mobile not fierce competitor in wireless
Watching them over the last few years the answer is they are not a real competitive threat to traditional wireless competitors like AT&T, Verizon, T-Mobile and Sprint.
Rather, they are just using wireless as a defensive play, not an offensive one. They are using wireless as another leg on their stool hoping to hang onto their existing customer base. They are not really marketing this service like traditional wireless services have always done.
With that said, I would think when Altice Mobile launches, it will not be a major competitor either. And since these three pay TV companies are not using wireless as a growth engine, perhaps DISH will not either.
Wireless going through major transformation
Wireless is going through a major transformation and that will continue for years to come. Today, it looks like current leaders, AT&T and Verizon will remain in the leadership position going forward.
With this merger, T-Mobile and Sprint look stronger than ever. Finally, they have wireless spectrum and marketing power. They should remain a strong third-place competitor.
DISH is the next big question mark. Will they become a hot competitor to the big players, or will they take a more gentile approach like Xfinity and Spectrum?
This wireless industry transformation is still in the very early stages. At this point, this merger only really impacts T-Mobile and Sprint. The real action comes from where 5G will take this entire industry for years to come.
Other industries will use 5G to rapidly grow and transform life as we know it. Think of wireless pay TV. Think of wireless self-driving cars. Think of all the amazing new technology that has already come our way like Uber and Lyft and much more. Think of what tomorrow will look like on the 5G networks which have only just begun.
Wireless will continue to rapidly grow and change. Expect other companies in other industries to use wireless to grow in new ways. This is one of the most exciting times we have ever experienced, and we are just in the very early stages of this movie.
So, once again, congratulations to T-Mobile and Sprint. You now have the wireless spectrum and the marketing power to show growth as this industry moves into 5G. We’ll be watching all the fireworks and excitement.
