Amazon or Cable Company Could Become 4th Major US Wireless Carrier; Comcast Says No

the Sprint/T-Mobile transaction,” a Comcast spokesperson said. “We don’t comment on rumors and speculation,” an Amazon spokesperson said. Analysts cited reports such players are scoping Boost, which the companies agreed to sell (see 1905200051) to get FCC clearance. Other divestitures could be forced by DOJ. Agreement is possible, New Street’s Jonathan Chaplin told us Friday. “It will be a complicated negotiation, but there should be a deal that works for everyone.” Antitrust Division Chief Makan Delrahim “would like to approve the deal, but he has a memo from his staff highlighting competitive harms and he has 17 state [attorneys general] threatening to sue if he does approve the deal,” Chaplin said: “The easiest path forward for him would be finding concessions that address the harms and undercut a case by the state AGs. Establishing a credible fourth competitor would be the perfect solution.” Chaplin said cable will get in anyway. “They will buy spectrum,” he said: “They would also love a better [mobile virtual network operator] MVNO than they have now, one that gives them core network control.” While prospects Amazon might jump into the wireless business have caused market jitters, the threat is limited, said Wells Fargo’s Jennifer Fritzsche. “Spectrum is the life blood of a wireless network -- and while [Amazon] could buy some spectrum divestitures if required to get this done -- it is impossible for us to see how it will amass the necessary spectrum to mirror that of the wireless incumbents,” she told investors. “That the DOJ has forced T-Mobile to contemplate such a transaction suggests the DOJ has signaled that without such a deal, it will file a complaint,” New Street’s Blair Levin told investors. “How much T-Mobile is willing to give up to proceed," he asked. Negotiations are likely just getting started and there are some big questions, Levin said. “We don’t know whether Cable or Amazon are seriously interested or want to see what might be available now or, if the deal doesn’t go forward, from Sprint in the future. ... We don’t know if the Cable players are willing to agree to the terms of a joint venture necessary to make the new entrant a national player.” Barclays' Kannan Venkateshwar noted analysts there have made the case for “convergence between the application layer and the network layer … where we had argued that over the long term, there was a high likelihood of companies such as Amazon and Google getting into wireless.” Amazon and Google are testing in some bands, including the citizens broadband radio service band, Barclays said.