Last week, Comcast confirmed plans to launch a mobile service by mid-2017 using Verizon Wireless's expansive nationwide network. Here's what this Comcast/Verizon collaboration could mean for you and the U.S. wireless industry.
In 2014, the two biggest cable companies in the U.S. agreed upon a $45 billion deal in which Comcast would acquire Time Warner Cable -- but in the end, Comcast decided to abandon the merger in April 2015. Here's what this collapsed deal means for consumers and the industry.
In the wake of the failed merger between Sprint and T-Mobile, competition is escalated in the wireless industry. Last week, Sprint implemented a new pricing strategy, eliciting a response from T-Mobile.
The price of the merger is about $40 per share for Sprint to purchase T-Mobile, resulting in a total mega-deal of around $32 billion. The intended merger is expected to officially be announced within the next few months.
At the beginning of the week, Verizon announced its most recent deal to shell out $130 billion to own Verizon Wireless, aka Britain's Vodafone, its own wireless unit and business partner. And on Tuesday, Microsoft revealed plans to buy out the once dominant phone maker, Nokia, for the equivalent of $7.2 billion.
After years of domination in the US, top wireless carriers might finally have to start watching their backs. A more evenly-distributed base of customers would ultimately increase the need for all carriers to have a competitive edge, which could mean better pricing, better devices, better contract terms – or maybe even eliminating contracts altogether.
What all of this means for the telecom industry, and how it could affect you. Rival carriers should keep a close eye on Sprint in the coming months. With the power of SoftBank funds and the Clearwire network, the merged company is in a very powerful position to create some real competition in the wireless market.