Sprint (S) Is Trying To Compete With Cable Industry

On Tuesday, the president of SoftBank, Masayoshi Son unveiled his plan of creating amalgamation between Sprint Corporation (NYSE:S), which he owns, and T-Mobile US Inc (NYSE:TMUS), which he desires for to own it, to develop that would give the cable companies tough time to offer Internet service in the state.

An industry analyst, Chetan Sharma said that there is an advantage that wired Internet provides faster speed as the inside of a wire is a controlled setting and no hinders is created by the air during e-mail process instead of wireless connection. In comparison to wireless network connections, wired broadband will be at least 100 times faster for the predictable prospect.

Wireless network connections can only preferable in distant areas, where it is more comfortable to construct a tower or two than bringing fiber optic cable in area which is quite expensive, Sharma said. Son’s strategy may be following Obama administration plan of providing internet facilities to rural areas of America.

The wireless network connections could battle with broadband in just one way to propose comparatively slow connections on very less charges. He also added this amalgamation will not be based on performance only but just like T-Mobile strategy in wireless industry, clever bundling and pricing for people sick of cable companies is also in pipeline.

In stagnate wireless industry; T-Mobile has been the freshest light wind to blow in years. It is also believed that its success is due to failure of AT&T in attempting to purchase the company in 2011. It is speculated that enormous price warfare will be raised in industry it amalgamation of Sprint and T-Mobile will happened. It is also a fact that now the objective of T-Mobile is to deal with time-consuming deals and other wireless industry direness and the company has not focused on decreasing the charges yet decreased for users.