We've seen AT&T
So Ma Bell must be elated to see some support at long last. It's even more exciting when the backing comes from archrival Verizon
Speaking at the Communicopia conference Wednesday, Verizon CEO Lowell McAdam gave the AT&T-Mobile union his wholehearted blessing.
"The AT&T merger with T-Mobile is kind of like gravity, it had to occur," McAdam said. In his view, AT&T is desperate for more wireless spectrum, while T-Mobile doesn't have the financial wherewithal to build networks for all the spectrum licenses it owns.
And like gravity, he also had to point out how the merger would help Verizon. "If you look at the path that wireless is on, clearly we need to have more spectrum in the marketplace," he said.
In other words, you gotta let AT&T swallow T-Mobile for its spectrum assets, because then we can complain about being spectrum-starved ourselves. Wireless licenses are like liquid gold in this business, and more is always better. Therefore, any excuse to petition the government for another spectrum auction, or perhaps permission to buy up a bunch of smaller competitors, is a great excuse.
After a speech like that, I get the distinct feeling that Verizon wants to buy network-compatible rival Sprint or spectrum-drenched Clearwire
I believe that the merger is poised for spectacular failure, but it ain't over till it's over. You should keep a close eye on this industry, Fool:
Fool contributor Anders Bylund holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of AT&T. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.