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Google IPO, digital-ad era begins
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Cingular Wireless has acquired AT&T Wireless for $41 billion in cash, defeating rival bidder Vodafone. The deal creates the largest U.S. mobile carrier with 46 million customers, surpassing Verizon, and signals increased consolidation in the telecom sector with potential implications for competition and market dynamics.
Sprint and Nextel agreed to a $35 billion merger of equals, forming Sprint Nextel, the third-largest U.S. wireless carrier with 35 million customers and $40 billion in combined revenue. The deal aims to cut $12 billion in costs but faces regulatory scrutiny from the FCC, with expected job reductions and network integration challenges. Market concentration will rise, with the top three carriers controlling 75% of traffic.