What is Next Big Deal to Be Proposed in US Market?

By

Now that AT&T has formally announced its deal to buy DirecTV; Dish Network, Sprint, T-Mobile US and Verizon are the remaining leading U.S. providers in various parts of the emerging triple-play market not already committed to a major acquisition effort.

Comcast’s move to buy Time Warner Cable and AT&T’s bid to acquire DirecTV will likely force other providers to assess how they can bulk up as well.

Some question the value or wisdom of AT&T’s proposed purchase of DirecTV, though few have similar qualms about Comcast’s acquisition of Time Warner Cable. The main argument seems to be that the former transaction does not yield as many strategic advantages as does Comcast’s purchase of Time Warner Cable.

To be sure, AT&T’s acquisition of DirecTV is criticized as buying into a platform of limited value for the emerging triple play business and a service (linear video entertainment) that is in danger of being supplanted by over the top delivery.

In fact, that shift to over the top delivery is at the top of agendas for Verizon, Dish Network and Comcast, in various ways.

Those criticisms have merit but periods of industry consolidation sometimes are driven by strategic motives of several types.

Sometimes the issue really is gaining strategic products. That was the case for high speed access, mobile services and video entertainment.

That is a “broaden our scope of products” motivation.

At other times, even big moves are driven by scale concerns. Comcast’s move is more that sort of move, and AT&T’s bid to buy DirecTV also is related to customer mass and scale. At a time when all the major providers are getting bigger, grabbing more customers (scale) is reason enough to make big acquisitions.

AT&T might have preferred to gain more scale in mobile, but antitrust authorities closed that approach. Likewise, regulatory officials undoubtedly would frown on any AT&T expansion of its fixed network share, even if AT&T wished to do so.

In that sense, the DirecTV deal is not as valuable as AT&T might have preferred, but its other methods of expansion in the core U.S. market are not available.

Verizon might earlier have been considered a bidder for Dish Network, but does not at the moment seem to want to pursue that sort of deal. Dish Network, on the other hand, has to find a partner, near term, to help it deploy its planned Long Term Evolution network.

Sprint and T-Mobile US, meanwhile, are in a situation akin to that of the satellite providers. They are single-purpose networks in a market making a rapid transition to triple-play services based on ownership of both fixed and mobile assets—so additional deals are coming.




Edited by Maurice Nagle
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Why More Leads Won't Fix a Broken Lead Management Process

By: Contributing Writer    6/23/2026

When sales results start to stall, many organizations immediately look to the top of the funnel for answers. The assumption is simple: if revenue i…

Read More

Your Post-Quantum Readiness Starts at Y2Q Summit

By: TMCnet News    5/27/2026

Y2Q Summit is an executive conference focused on helping enterprises prepare for the coming era of quantum computing disruption, cybersecurity transfo…

Read More

Why Award Marketing Should Be Part of Every B2B Tech Company's Growth Strategy

By: Erik Linask    5/20/2026

Award marketing matters for B2B tech companies because industry recognition can strengthen trust, support sales and partner relationships, improve con…

Read More

Why Email Is Still the Most Underrated Layer of Modern Software Infrastructure

By: Contributing Writer    5/15/2026

Take, for example, the following scenario. A user requests a password reset, waits a few seconds, refreshes their inbox and nothing arrives. They try …

Read More

Jitterbit's Visionary Status Signals a Shift in the iPaaS Market

By: Contributing Writer    4/7/2026

As enterprise ecosystems grow more complex, integration has become less of a backend IT function and more of a strategic driver of business performanc…

Read More