Tuesday, March 22, 2011

Sprint taking a hit at the Exchange after the AT&T/T-Mobile Merger

I wanted to write this quick post as a follow-up to Dr. Kim's post the other day about the AT&T/T-Mobile merger, here. I thought it was fitting being he ended his post with "So, what's going to happen to Sprint?" Well, the reaction on Wall St. today is all negative--Sprint took a 14% loss just today and has propelled options trading on the company. Many felt that it's price before the merger is now overvalued as so many were expecting a Sprint/T-Mobile merger to come to fruition in the next year. 

I think most analysts were predicting Sprint to do everything it could to be the one to merge with T-Mobile so that it could more effectively compete with the much larger (and now even larger) AT&T and Verizon. With AT&T taking T-Mobile, Sprint is now a distant second to Verizon in AT&T in size and user base. Considering Sprint and T-Mobile seem to be the ones adding much of the mobile plan pricing competition to the market, one has to think that it's in the consumer's benefit for the struggling Sprint to push on...and keep added necessary competition to a still young mobile marketplace. 

About the author:

Dr. Riley Alexander is a pathology resident at Indiana University School of Medicine, blog "addict" and avid follower of technology. His primary interests revolve around how technology, especially mobile, will create increased efficiency, enhanced physician education and better delivery of care in the medical field. Dr. Alexander is a graduate of Indiana University School of Medicine with a combined MD/MBA, in partnership with IU's Kelley School of Business. Due to this, he is also very interested in management, healthcare policy and non-clinical aspects of the medical field and enjoys exploring non-clinical opportunities for medical students, residents and physicians. He completed his undergraduate education at IU-Bloomington.

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