The Biggest Trend in Wireless Keeps on Rolling

Scale has always been the name of the game in the telecom industry. Even dating back to the days of the AT&T (NYSE: T  ) monopoly of the mid-20th century, telecom companies have always grown through acquisition. The financial crisis only temporarily slowed this trend, but we've seen the buyout boom in this space resume with a fury over the last 12 months. We recently saw the latest domino fall as giant AT&T agreed to snap up smaller pre-paid wireless player Leap Wireless (NASDAQ: LEAP  ) . In this video, Fool contributor Andrew Tonner breaks down the deal and what it means for investors in this sector.

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  • Report this Comment On July 21, 2013, at 1:13 AM, grahamsway wrote:

    Nice presentation.

    I'm not convinced the Leap deal was spectrum based. Leap didn't seem to have that much extra spectrum and certainly not enough unused spectrum to justify the price paid.

    I'm thinking deals like this are more related to a subscriber grab. All the big players face a huge growth problem. The market's so saturated that its about stealing others customers.

    In that environment, one spark of a discounting war could set the whole industry into a really ugly profits mess. For AT&T having a 5 million sub low cost niche brand might offer some protection.

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