AT&T/T-Mobile merger could put Sprint out of business

By on September 12, 2011 at 2:20 PM.

AT&T/T-Mobile merger could put Sprint out of business


Chitika Insights, Chitika’s research arm, recently proposed the question “What if AT&T and T-Mobile actually merge?” and created a graph of what the wireless landscape in the United States might look like if AT&T’s proposed $39 billion takeover of T-Mobile USA is passed. Chitika concluded there could be calamitous consequences for Sprint and various regional carriers such as Boost and MetroPCS. If the merger is approved, AT&T and T-Mobile will have more than 130 million subscribers and 51% of the U.S. wireless market based on usage, Chitika’s data suggests. “[The] projection shows the immediate impact of the merger, so the smaller network’s share looks unscathed,” the company wrote its blog. “However, the future consequences are dire for the smaller networks because the AT&T/T-Mobile network would be able to dictate market prices.” Sprint and smaller carriers such as MetroPCS and Boost may lose customers to “the greater combined coverage of the proposed behemoth,” too, while Verizon’s usage share would sit at 33%. “If this merger were to pass, it would almost certainly put companies like Sprint, MetroPCS, Boost, and other smaller networks out of business.” Chitika concluded. “Therefore, Sprint’s interference isn’t a surprising move in the least.” Sprint and the Department of Justice have both sued in an effort to block the merger. More →

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Dish Network to shutter 200 more Blockbuster stores

By on July 22, 2011 at 7:20 PM.

Dish Network to shutter 200 more Blockbuster stores

Dish Network on Thursday revealed plans to shutter 200 additional Blockbuster stores, dropping the number of nationwide locations to approximately 1,500. Dish won an auction to take control of Blockbuster and its remaining assets this past April, after the fallen giant filed for bankruptcy last September. Dish said that the 15,000 employees working in Blockbuster locations that will remain operational will not lose their jobs. The company also said employees of the locations set to be shuttered will have the opportunity to transfer to other stores. Blockbuster failed to evolve with the shifting movie rental industry — when it finally did begin to offer new portfolio options to compete with the likes of Netflix, it neglected to add any real value or differentiation beyond competitive offerings. Coupled with the expense of operating physical rental shops, Blockbuster didn’t stand a chance. Dish Network acquired Blockbuster’s in April for approximately $228 million in cash, and it remains to be seen whether or not Dish can manage to transform the current business into something worthwhile. More →

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Employees fight for pay as Modu is forced to close its doors

By on January 12, 2011 at 6:44 PM.

Employees fight for pay as Modu is forced to close its doors

Modu Ltd., maker of some of the smallest cell phones in the world, will soon be forced to shut its doors according to a pair of reports from Israeli news site Ynet. The news follows reports from November of last year stating that the Israel-based company was forced to cancel a planned IPO and instead begin laying off most of its staff. It now appears as though modu will be forced to close in early February and until then, only a small sales team will remain in place to sell off remaining inventory. According to the report, modu currently owes $123 million to investors and another $21 million to the Israel Discount Bank. Modu may also owe a substantial sum to former employees, who today filed a liquidation request with Israeli courts in an effort to recoup salaries they are allegedly owed. Modu made a name for itself in 2008 when it announced a tiny modular cell phone that could take on new shapes and functions by sliding into various accessories. It would later announce two new devices — the modu T phone, the lightest touchscreen phone in the world, and a Wi-Fi-only VoIP phone called the modu W — but neither phone would become widely available. More →

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