AT&T’s Proposal Ratified and 4 Telecom Titans Attracting Interest
AT&T, Inc. (NYSE:T): United States regulators ratified a proposal from AT&T, Inc. and Sirius XM Radio Inc. that would let the mobile phone provider offer more wireless data services while protecting satellite radio subscribers from interference. The rules were approved by the Federal Communications Commission on a 5-0 vote and will effect airwaves known as the Wireless Communications Service band and nearby frequencies used by Sirius to reach 23.4 million subscribers.
Sprint Nextel Corp. (NYSE:S): According to Bloomberg, Sprint Nextel Corp. expects the United States Justice Department to complete a review of the company’s agreement to sell a majority stake to Softbank (SFTBF) within an initial 30-day period. This will not warrant an extended investigation.
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Verizon Communications Inc. (NYSE:VZ): With the wireless industry getting more saturated, the focus has shifted from acquiring new subscribers to converting more of their existing base to smartphones. Almost 73% of all retail postpaid phones that Verizon Communications Inc. sold last quarter were smartphones, with 40% of those upgrading or being first-time smartphone buyers. This helped to increase their smartphone penetration within the postpaid subscriber base to 50%, up from 47% at the end of the March quarter. This will leaveVerizon with enough room to increase smartphone penetration even further. Since smartphone users are usually heavy data users as well, this should continue to help increase postpaid average revenue per user further. Verizon’s data revenues last quarter soared more than 18% and postpaid ARPUs grew 3.7% over the same period last year.
MetroPCS Communications, Inc. (NYSE:PCS): MetroPCS Communications, Inc.’s shareholders have filed a lawsuit in a bid to block the pending merger between MetroPCS and T-Mobile, arguing that their share in the deal has been “drastically undervalued.” The lawsuit, which has been filed in Dallas, Texas, is against MetroPCS, T-Mobile USA and T-Mobile’s parent company Deutsche Telekom, according to a report Tuesday from CNET, which cited TmoNews, a T-Mobile-specific news site. MetroPCS investors are claiming that they have been cheated by the deal, with financial benefits falling overwhelmingly into the hands of Deutsche Telekom and MetroPCS’s board of directors.
Level 3 Communications Inc. (NASDAQ:LVLT): Level 3 Communications Inc. announced that they have expanded their data center, in the city of Quito, as a response to increased demand resulting from growth in important economic sectors, such as insurance, retail and banking. These enterprises increasingly require more data centers and IT services.
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