As the 5G deployment is about to begin, competition in the US wireless market is also heating up. According to the latest research from Strategy Analytics, the merger of T-Mobile and Sprint, two major operators in the US, will accelerate the adoption of 5G in the United States. The merger of the two parties will promote the growth of US 5G users by 17%.
The report disclosed that the merger of T-Mobile and Sprint will promote the growth of 5G users by 17%. "While T-Mobile and Sprint's merger will have stronger national and spectrum advantages, Verizon and AT&T will be able to cope with and manage the loss of market share." On the other hand, the advantage that merger of the two companies has led to accelerated development of 5G may be offset by a certain degree of weaker price competition, and operators may have more potential for profit from the market. Filling compound for optical fiber cable.
Phil Kendall, Executive Director of Strategy Analytics, added: "The faster 5G deployment and adoption will benefit US consumers from the merger of the two companies, even though all of this will come at a price. The operator's EBITDA profit margin in the three player market is 3-4 percentage points higher than the four major player markets, so a merger of this size may weaken price competition and increase operator profits." filling gel for optical fiber cable
Ken Hyers, Director of Technology Analytics Services, Strategy Analytics, commented, “We anticipate that 5G smartphones in 2019 and early 2020 will be very expensive—nearly $1,000 because of their high technical complexity and high-cost tariffs normal early operations. If T-Mobile and Sprint want to reduce retail prices to levels that early large-scale adopters are willing to pay, they may need to subsidize the first batch of 5G smartphones." filling jelly for optical fiber cable
In addition, Strategy Analytics predicts that by 2023 the combined T-Mobile and Sprint operating performance will be nearly one percentage point higher than the market share of individual operations, and the user account market share will be 0.5 % higher，and share of revenue is 0.4 % higher.
Strategy Analytics expects that the T-Mobile / Sprint user account market share growth will be relatively flat with Verizon and AT&T. However, Verizon’s revenue is more dependent on the post-paid market, and the accelerated growth of 5G during the forecast period will be mainly in the post-paid market. This will make it slightly affected by the merger in terms of earnings.