Reuters is reporting that AT&T CEO Randall Stephenson believes that his company will have to divest portions of its existing wireless network to secure federal permissions to acquire T-Mobile. Stephenson’s comments were made in New York at a Council on Foreign Relations event held on March 30, 2011
My suspicion is that T-Mobile will be similarly required to divest portions of its existing wireless network in the same or adjoining areas as those assets that AT&T will shed to make the deal work for the Feds.
The shed assets will help strengthen the remaining, small competitors, who will then become known as current take-over targets for other major players.
Stephenson also said at the same event that he expected consumer prices for wireless services to continue drop as a result of the proposed merger. His comments came just hours before April Fools Day.