The intermittent courtship between telcos Sprint and T-Mobile has officially returned, with The Wall Street Journal reporting today that companies have resumed talks on a merger for the third time in four years. The companies could not "find mutually acceptable terms" last fall, when the talks ended without an agreement in November. The discussions are at a preliminary stage, the WSJ reports, so they can still fall apart once again.
However, this time the big antitrust case between the US Department of Justice is different. UU And AT & T, which intends to boost its acquisition of Time Warner to create one of the most powerful telecommunications and entertainment empires in the world. The trial entered its fourth week of yesterday with little surprise news.
AT & T remains the second largest telecommunications company in the US. UU With around 93 million subscribers, just behind Verizon. And while an acquisition of Time Warner would not necessarily improve AT & T's telecommunications business, it's more about Time Warner's media properties, the deal would further solidify AT & T as a media giant and could hamper the competition with the company in any field. AT & T could integrate its telecommunications, internet or media businesses in a deeper way, as it does today, through the zero rating of its DirecTV Now transmission service for its cellular plan subscribers.
If Sprint and T-Mobile merged, they would have a larger telecommunications business than AT & T and would help SoftBank and Deutsche Telekom, the respective owners of Sprint and T-Mobile, to better compete with the two main US telecommunications. . UU But we still do not know how the Trump administration, which pushed the Federal Communications Commission to neutralize neutrality last year and opposes the AT & T merger, would see a combination of Sprint and T-Mobile if it moved beyond the preliminary conversations. If we look closely at the AT & T-Time Warner trial, we can tell more.