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Industry Analyst Jeff Kagan: Largest Merger Spree for Wireless, Telecom, Cable Since Mid 2000s is Beginning


May 22, 2014 --
Industry Analyst Jeff Kagan: Largest Merger Spree for Wireless, Telecom, Cable Since Mid 2000s is Beginning

Atlanta, GA (PRWEB) May 22, 2014

The busiest merger season in a decade may be beginning once again for wireless, telecom, cable TV, satellite TV and Broadband is gearing up, says Money on CNN, May 14.

Industry analyst Jeff Kagan offers comment.

I have been a Technology Industry Analyst for roughly 30 years, and I have seen several different merger waves during that time. Lately I am starting to think the next, big merger wave is beginning and this may be the biggest in ten years. Says Principal analyst Jeff Kagan.

Mergers are good. The help companies continue to grow and that is good for the investor who cares about nothing other than making more money. Mergers are good for customers since they often bring new products or service to market. Mergers are also good for companies because it lets them compete in new and different segments. Says wireless analyst Kagan.

Mergers re-write the DNA of the industry. We saw this happen ten years ago. Think back to the 1990s. There were many different and much smaller companies competing in different segments of telephone, wireless, cable television, Internet and so on. Then in the mid 2000s Comcast acquired AT&T Broadband and became the largest cable television company. SBC from San Antonio Texas also acquired AT&T, Bellsouth and Cingular changed that Baby Bell from the smallest to the largest. These and other mergers changed the DNA themselves and the entire industry. Says Tech analyst Kagan.

Competitors moved from smaller in limited geographic footprints and little competition in the 1990s, to larger, more national players, competing in new segments in the 2000s.

This next wave will let these large companies become more national in scope and compete with new companies in new regions of the USA.

Thats one reason I think these mergers stand a good chance of being approved. It will be good for the investor, good for the customer, good for competition and good for a growing and changing industry. Says Technology analyst Kagan.

This current wave started last year with Sprint and Softbank. This let Softbank into the US marketplace and gave Sprint the ability for a rapid investment and reinvention. Next Sprint wants to merge with T-Mobile.

That idea has been receiving pushback, however that pushback was when the thinking was it would be the only merger on the table.

However since then we have seen Comcast and Time Warner Cable announce their intention to merge. And now AT&T and DirecTV are heading down that same path.

This changes the dynamice of the industry. All these mergers tend to change things. These are mergers that will change the DNA of the industry once again. I cant see regulators letting one merger happen and block others. That would be unfair in a competitive industry. At this point I think regulators will pull the camera back and take a longer term perspective on the changing industry. They want all carriers to be competitive and to win. Thats good for the marketplace. Says Kagan.

Thats why I am beginning to think that all these mergers may indeed be approved. The reason is they are going to change the regulators view and approval for all is much more likely than ever. Well have to wait and see what happens of course, but I sense the marketplace is moving towards a good place for these mergers to be approved. Says Kagan.

And we may be seeing more mergers announced in coming quarters as well. We are in the early stages of this next merger wave. Says Kagan.

About Jeff Kagan

Jeff Kagan is a Technology Industry Analyst, consultant and columnist. He is regularly quoted by the media and shares his opinion in many ways over 25 years.

He offers comment to reporters and journalists on wireless, telecom, Internet, cable television, IPTV and other tech news stories.

Kagan is also known as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst.

Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.

Clients: Contact Jeff Kagan to discuss briefing him or becoming a consulting client.

Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.

Visit his website: at to learn more and for disclosures.

Twitter: Follow him at @jeffkagan

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