Verizon (VZ) May Win in AT&T (T), T-Mobile Deal

The proposed acquisition by AT&T (NYSE:T) of T-Mobile could end up being a major positive for Verizon Wireless (NYSE:VZ).

"While Verizon Wireless would clearly become the nation's second-largest mobile carrier after the deal, industry consolidation that marginalizes low-cost offerings could benefit the company by boosting its power to control pricing. Additionally, Verizon could win customers from a distracted AT&T, which analysts say likely will face tough and prolonged regulatory scrutiny for the merger," said the Wall Street Journal.

"AT&T's deal for T-Mobile also contains some worrisome aspects for Verizon Wireless, including a larger and more emboldened rival in AT&T. RBC Capital Markets wrote in a note Monday that Verizon "could see incremental pressure from facing a stronger competitor."

"Another possible investor concern is that Verizon may be spurred to spend money in reaction to the AT&T deal. While analysts say it's unlikely Verizon would go after Sprint Nextel Corp., they say the company could improve ties with Vodafone, a relationship that has had its rocky points."

Verizon was trading at $36.44, up $0.60, or 1.67 percent, as of 2:52 PM EDT.




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