Anjali Athavaley

AT&T has started trials in Georgia state and a non-US location to deliver high-speed internet over power lines, marking its latest push to offer faster broadband service to more customers. “We think this product is eventually one that could actually serve anywhere near a power line,” said Marachel Knight, AT&T’s senior vice president of wireless network architecture and design. She added that AT&T chose an international trial location in part because the market opportunity extends beyond the United States.

US cable operator Altice USA will sell mobile service on wireless carrier Sprint Corp’s network under a new multi-year agreement announced on Nov 5, becoming the latest firm to enter the wireless market in a bid to retain customers.  The companies announced the agreement a day after Sprint and T-Mobile US Inc ended merger talks. Under the terms of the agreement, Altice, the fourth-largest U.S. cable operator, will use Sprint’s network to provide voice and data services in the United States. It gave no time line on when it will introduce such services.

In 10 days, the Federal Communications Commission will lift a ban on telecoms companies engaging in merger talks, and Wall Street is betting on T-Mobile US, Sprint, and Dish Network to be the first ones out of the gate. Shares of these companies have soared over the past 12 months on expectations of deal talks, and are trading at up to 31 times forward earnings, versus the S&P 500 telecom services index's .5SP50 18 times.

The rich valuations could discourage acquirers, who also have to assume the risk that antitrust regulators may look askance at more consolidation in the sector after a wave of mergers in recent years, investment bankers and industry experts say. "It seems as though valuations have already jumped to a near certainty a deal will be announced and approved. You have to ask yourself whether T-Mobile is going to be as eager to do a deal as Sprint," said Craig Moffett, an analyst at MoffettNathanson.