Regardless of Mobile Telecom M&A, Market May Have Four to Five Key Players

Oddly enough, whether Sprint decides to bid for T-Mobile US, and whether that deal is approved or rejected, the US mobile market is may likely retain its current structure. Only the names might change.

Over the longer term, Comcast may emerge as the number-three provider, no matter what happens with Sprint and T-Mobile US.

The reason is a fundamental change in consumer communications and video entertainment markets, putting a premium on the ability to sell a quadruple play or triple play package that is functionally equivalent to a quadruple play. More than 97 percent of AT&T’s 5.7 million video customers subscribe to bundled services, according to the company.

“This consumer preference is not unique to AT&T, as 78 percent of basic subscribers of the six largest cable operators take at least a double-play of services, predominantly video and broadband,” the company says. In 2006, cable TV operator bundle adoption was 56 percent. Since then, adoption has grown, globally.