T-Mobile M&A chatter could dominate US telecom news in 2017

The way that Morgan Stanley sees it, T-Mobile will either be the taker or the taken this upcoming year.

The Un-carrier, which has gone through an extended bout of growth, has been the hottest item in the consolidations market these days as Verizon and AT&T gobble up media companies by the boatload. So, what can number three T-Mobile do to size up?

Analyst Simon Flannery believes that while the most “attractive outcome” will see Sprint take Big Magenta over, even with a favorable FCC under the anti-regulation intentions of the Trump presidency. Barron’s also said T-Mobile could also buy out US Cellular, though US Cellular might be doing just well on its own, thank you very much. Plus, T-Mobile would have to work on converting US Cellular’s CDMA towers as it had to for its MetroPCS merger.

Outside of intra-industry mergers and acquisitions, cable companies could make waves in the wireless sector with a T-Mobile move. Wireline TV providers might be able to patch up subscription cutters with such a move. Sprint, given its eccentric SoftBank ownership, might make a brash counteroffer in response and AT&T and Verizon might be kept on their toes with another combined wireless/wireline player in the field. Even fiber-based internet providers, the biggest independent company as of this stage being Zayo, could make it TMUS a bigger differentiator.

Plenty of options and a long four years ahead…

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.