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Is Comcast Looking To Acquire T-Mobile?

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Just this week, Comcast announced its plans of launching its wireless service by 2017. But speculation has it that the cable TV giant is looking to build on that move by acquiring a telecoms company. And one of the possible candidates is major US wireless carrier T-Mobile, according to a report published by the Wall Street Journal.

In launching its wireless service next year, Comcast is making full use of a mixture of Wi-Fi connections as well as spectrum that it has leased from industry leader Verizon Wireless, which basically means that Comcast will be acting as a sort of mobile virtual network operator (MVNO) on the Big Red’s network. However, in order for the company’s wireless service to really take off, it may need to have its own wireless network.

This is where T-Mobile plays an important part. By acquiring the third biggest wireless carrier in America, Comcast would put itself in a good position to take advantage of T-Mobile’s growing subscriber base and existing nationwide wireless infrastructure. If there is any truth to all the speculation, buying T-Mobile would certainly be a big win for Comcast. According to T-Mobile’s latest quarterly report, the mobile operator has gained about 753,000 branded postpaid phone net additions, and added 650,000 prepaid net customers. The wireless carrier also took the opportunity to point out how its rival carriers have contributed to the number of T-Mobile’s new customer additions, with more than 250,000 postpaid phone and prepaid net customers coming from Verizon Wireless, almost 400,000 from AT&T, and nearly 300,000 from Sprint.

For its upcoming wireless service, Comcast is planning to initially target its own customers, and even considering bundling its mobile offering in order to entice its current subscribers to not end their Comcast subscriptions. But if it acquired T-Mobile, the cable TV giant can make a more robust push in establishing its presence in the wireless industry, certainly making a bigger impact than what a simple MVNO on Verizon’s network can manage. However, Comcast should know that making a move to acquire a wireless carrier will surely set a precedent, essentially encouraging other cable operators (like Altice, for instance) to compete with Comcast in trying to buy T-Mobile.


Source: Investopedia

28 comments:

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  1. It'd be a strategic move for Comcast.

    Mobile service could supplement and/or replace their phone and internet offerings.

    They could even stream cable television straight to their customers' wireless devices.

    The best part is, it'd expand their reach to other parts of the country and open up new markets outside of their current fiefdoms.

    The problem is, Comcast isn't exactly the most reliable, competitive or consumer-focused conpany, so they'd probably find some way to botch a great opportunity with regressive pricing and cringe-worthy restrictions.

    I'm sure they'll even bring back the two-year contract and drastically slash the amount of data their internet subscribers can use.

    If Comcast eats T-mo, it'll just wind up being a terrible deal for consumers.

    Not as terrible as Sprint assimilating T-mo, but still pretty terrible.

    Heck, there should actually be a law barring companies with such poor reputations from buying other companies, at least until they clean themselves up.

    It'd save consumers a lot of disappointment.

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    1. "..there should actually be a law..."

      But the criticisms you gave were highly subjective. Not the sort of thing to base law on.

      Delete
    2. If a company can't manage at least a C grade in consumer satisfaction (75 or more), they should be put on a merger blacklist to stop them from spreading their cancerous corporate culture.

      Comcast managed a 62 in the most recent study, just 8 points above "worst company" Mediacom.

      If/when CC takes over Tmo, I'll be the first to jump ship.

      There's a reason Comcast remains nestled deep in the trash, but here's 21 just in case.

      https://billfixers.com/blog/21-times-comcast-worst-company-america

      They're basically the Tracfone of cable/internet companies.

      But then again, so are all the rest.

      Delete
    3. The above comment is by someone who apparently confuses clickbait/trash web sites with serious policy. His authority on whether or not a company is good or not? Billfixers, which is "two brothers from Nashville."

      He is entirely in fiction-land, along with his unsupported claims about Tracfone. Unsupported because Tracfone consumer ratings across the board are in line with other carriers.

      Thankfully, this is America: where we choose government by the vote, and we choose companies and products by voting with our wallets.

      If you want a place where the ruling class controls all private matters (including business), please go to North Korea.

      Delete
  2. Great! Now Comcast is going to screw up T-Mobile with "Xfinity Wireless". Maybe Sprint really will be the number 2 carrier by 2018.. After Comcast makes us all hate wireless again.

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  3. This would put T-Mo on equal footing alongside Verizon and AT&T... both of which has Mobile+High Speed Internet+TV.

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    1. "both of which has Mobile+High Speed Internet+TV"

      In other words, T-mo would gain nothing of value.

      Neither Verizon nor AT&T have truly leveraged their television and internet offerings to improve their mobile services.

      They don't offer unlimited zero-rated mobile livestreaming of tv channels/VoD for cable customers on a branded plan, nor do they offer even 250GB of combined mobile+wifi data.

      Despite having the tools to incentivize customers to go pure Verizon/AT&T, they've completely dropped the ball when it comes to offering customers any sort of worthwhile loyalty bonuses.

      Comcast sure as hell wouldn't buck that trend.

      Instead, they'd just degrade the service until it's just another branch of the worst company in America.

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    2. "This would put T-Mo on equal footing alongside Verizon and AT&T"

      No, it wouldn't. Not unless Comcast invests in the network to expand it and alleviate congestion.

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    3. Yes, it wouldn't. As the Comcast merger would not necessarily bring the huge investment in new towers and new territory necessary for T-Mobile to get out of the back of the pack.

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    4. "Not unless Comcast invests in the network to expand it and alleviate congestion."

      They outright lie about wired congestion that doesn't exist, so why would they ruin a great opportunity to charge customers more for a wireless fast lane?

      "new towers and new territory necessary for T-Mobile to get out of the back of the pack."

      That would be Sprint.

      But don't worry.

      Comcast will make sure T-mo sinks back to fourth place.

      Delete
  4. Gov will never let it happen.

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    1. That's what people said about net neutrality violations, but just look at Binge On.

      The regulators aren'exactly competent, in part because of lobbying, political connections/contributions/corruption and the good ol' revolving door where corporations and government drink from the same personnel milkshake like a couple of lovers.

      Bought and paid for, every one of them.

      Except the ones who're powerless to stop corporate influence of regulatory institutions.

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    2. I would have thought the same thing about Charter buying TW so they could raise prices, but that absolutely sailed through, unopposed.

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    3. The gov isn't particularly opposed to such M&As. Comcast and TMO are not competitors when it comes to their product, and that's not even accounting for track record (Charter/TW, AT&T/DirecTV, etc.)

      Delete
  5. Comcast is actually America's most hated company.

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    1. "Comcast is actually America's most hated company."

      Care to back this up?

      You might check this list:

      http://www.bloomberg.com/news/articles/2015-02-05/america-s-most-loved-and-most-hated-companies

      Comcast comes out as Number 8. Worse is one of those satellite TV "There's a raindrop, might as well turn off the TV and read a book" companies.

      You are free to cherrypick and go through 20 more lists until you find ONE that says Comcast is most hated, but by then it is obvious that you lost your point.

      I'm not cherrypicking, and present the results of the first list that I found, the one that has the most standing.

      Delete
  6. All depends on TM...how badly they want to sell themselves, not withstanding the change they have pushed in market. Is that push desperate or a prep for a long term stand, time will tell.

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    1. If I can keep my plan and my doctor I wouldn't care. I'm afraid it puts an end to my plan and great price and service.

      Delete
  7. As I read this story spreading through the day's news cycle, I have a feeling of dread. It's a good strategy for Comcast (spit) and if they are able to find the magic number, DT will sell.

    TMO survived the AT&T buyout offer, and the Sprint merger rumors were easy enough to leave at that status. This time, I don't know. I could see it happening. They have been slowly making ready for a sale. It's always about the new customers on a family plan, and since that's not me, I'm an old customer on a family plan. I will stay until they make it impossible to continue.

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  8. For me it is like much of the nation: AT&T and Verizon everywhere, but no T-Mobile.

    And Comcast is no where to be found when it comes to cable. It would be nice if this merger meant a true rival to AT&T and Verizon, for the benefit of competition, but I don't see how.

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    1. This merger would eliminate T-mobile as a viable choice for cellular. It would force people to Sprint or ATT.

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    2. I don't see T-Mobile as a viable carrier yet, due to its poor coverage. But it's getting there.

      I don't see how the Comcast merger changes this one way or another

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    3. Poor customer service and uncompetitive prices will tarnish their viability, even if they manage to expand their coverage further.

      Delete
  9. If this happenes, Ill quit T-Mobile. Comcast will bastarize everything!

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  10. Maybe they'll buy DISH instead. DISH has a shit-load of spectrum just rotting away and no means of doing anything with it.

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  11. If this happens, I will switch to Sprint. If Sprint is gone by the time the merger is complete, I will have no choice and will have to use Verizon.

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    1. Sprint? Why punish yourself by going to an even worse carrier? Why not instead switch to one of the two much better ones?

      Delete
    2. Either AT&T doesn't work where he lives and travels, or he forgot they existed.

      Delete
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