On Friday, the U.S. Department of Justice and the Federal Communications Commission expressed support for the merger of T-Mobile and Sprint, the third and fourth-largest U.S. wireless carriers. T-Mobile has also been preparing for a follow-up merger of cable companies, with Comcast seen as the most likely candidate, according to recently disclosed report documents.
T-Mobile board member Thorsten is summarized in the document entitled “Defining a winning position for the US business model” (defining a new winner for the U.S. business model) Langheim’s proposal in December 2015. The aim is to outline how the company is consolidating its market position and leadership practices prior to the seminar.
The full text of the document, labeled “confidential”, shows that Deutsche Telecom, t-Mobile’s owner, is making a big bet on the US wireless market. Analysts also predict that as the company reaches its limits on organic growth, it will have to rely on industry-wide consolidation to continue its growth beyond 2018.
The report also warned the company not to over-aggressively price to maintain profits and merger potential. “Don’t start a price war in the U.S. market (a stable ARPU base will attract attractiveness and valuation),” he wrote on the last document page.
In this document, Sprint is not the only potential merger of interest to T-Mobile, including collaborations with mobile virtual carriers (MVNOs) and cable companies. Among the cable companies mentioned, Comcast is clearly the company’s preferred target. “Access to the mobile market may be the only natural choice for Comcast’s growth, as preferred Comcast Mobile(i.e. cable and content) is unlikely to receive regulatory approval,” the report assesses. There are few major regulatory hurdles. “