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Sunday, 22 May 2011 06:54

Sprint To Possibly Benefit From AT&T and T-Mobile Merger

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Sprint as you may already know is openly opposed to AT&T’s proposed $39 billion acquisition of T-Mobile, but the carrier actually stands to benefit from the deal according to Piper Jaffray analyst Christopher Larsen. Larsen recently lifted his rating on Sprint stock from neutral to overweight, while also upping his price target from $5.00 to $6.50. The analyst sees brighter days ahead for the carrier through the rest of 2011 and 2012 as well, believing that the AT&T and T-Mobile deal could become a good thing for Sprint. Larsen thinks that the merger could cause some subscribers to leave the new mega-carrier and come fleeing to Sprint. Furthermore, AT&T may be required to divest some of its markets for the deal to be approved and Sprint may be able to pick up that business or even some of AT&T’s spectrum assuming it is forced to let some go. Finally, the analyst also believes a post-merger market would be less prone to aggressive price cutting, which would certainly help Sprint maintain a competitive advantage in the wireless industry. What do you think of the whole ordeal? Do you think the analyst is making accurate assumptions or do you feel his predictions are way off? Share your thoughts and opinions in the section below! As usual, stay tuned for more tech news and info by following us on Facebook, Twitter and/or by subscribing to our RSS Feed. Authors:
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