Home > Uncategorized > A merger between AT&T and T-Mobile may be bad news for Verizon

A merger between AT&T and T-Mobile may be bad news for Verizon

I’m sure we all remember the days of the Verizon vs. AT&T map comparison: the days when AT&T had the iPhone, but people were hesitant to change carriers because they knew that Verizon just had better coverage.  In fact, Verizon was unrivaled in terms of coverage.

Verizon prides itself on being “America’s Largest Network”, but that might be changing.  AT&T recently announced that it will be acquiring T-Mobile; a merger that many ad agencies are preparing for.  Verizon will have to reposition itself, but how?

Verizon has always been known as the carrier with the largest network, but now that AT&T has lost its exclusive hold on the iPhone, it had to do something to level the playing field.  This merger would boost AT&T’s advertising budget, which is already the country’s third-largest at $2.11 billion.  The merger, of course, is an opportunity to improve service to both AT&T and T-Mobile customers.

Along with such a large transaction AT&T may also think of expediting their transition to 4G LTE (the same broadband service that Verizon is already on).  This would solve T-Mobile’s problem of being the ‘largest’ 4G network but not having any LTE plans.  This would leave Verizon in a position where all points of differentiation are now either met or surpassed.

Verizon now needs to consider how to strengthen the lead it already has, and quickly.  In such a competitive wireless market, a next move needs to always be on the time of one’s mind.  From the point of the consumer, this is an exciting time.  With such fierce competition comes innovation and new technologies that help to make the market stronger.  Who knows, maybe the end of dropped calls is closer than we all think!

 

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