CHICAGO, May 26, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AT&T Inc. (NYSE: T), Sprint Nextel Corp. (NYSE: S), MetroPCS Communications Inc. (NYSE: PCS), Wireless International Inc. (Nasdaq: LEAP) and Verizon Communications Inc. (NYSE: VZ).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday's Analyst Blog:
Will AT&T Finally Merge with T-Mobile?
The ambitious $39 billion proposed mega-merger of AT&T Inc. (NYSE: T) and T-Mobile USA, a unit of Deutsche Telekom, faces huge opposition.
Sprint Nextel Corp. (NYSE: S), the third-largest U.S. wireless carrier was the first to raise a voice of protest. Now, MetroPCS Communications Inc. (NYSE: PCS) and Leap Wireless International Inc. (Nasdaq: LEAP) have also joined the league of opposition. MetroPCS and Leap are the prepaid wireless service providers in the U.S.
According to these companies, the combination of the second and fourth wireless operators will create America's largest mobile phone company surpassing the present leader, Verizon Wireless, part of Verizon Communications Inc. (NYSE: VZ). The companies also fear that the collaboration will mellow down innovation and investments in the industry and eventually affect customers.
The proposed merger would further moderate competition, making AT&T and Verizon Wireless the only two dominant players in the industry, controlling almost 80% of the U.S. wireless post-paid market. Post-merger, AT&T will become the largest carrier with 130 million subscribers. Going by current numbers, Verizon holds the top position with almost 100 million subscribers followed by Sprint with a modest base of 50 million wireless customers. MetroPCS and Leap have much smaller subscriber bases with 8.1 million and 5.4 million wireless customers, respectively.
The combination will put pressure on smaller wireless carriers such as Leap and MetroPCS to purchase more spectrums (airwaves that carry signals for phone and wireless-Internet data) for future broadband networks. Further, the removal of T-Mobile as a stand-alone carrier would make deals and contracts more expensive and will be overruled by the two large operators. If the merger is approved, these smaller companies will not be able to outbid bigger competitors in spectrum auctions and business partnerships.
However, according to AT&T, the removal of T-Mobile would reduce competition in the low cost wireless market and would bring in more businesses for smaller companies. The proposed merger is under review by the U.S. senators, and is awaiting approvals from the Federal Communications Commission and the Department of Justice. The transaction is expected to close in the first half of 2012.
We are currently maintaining our long-term Neutral recommendation on AT&T with the Zacks #3 (Hold) Rank.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article