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How the AT&T/T-Mobile Deal Collapse Impacts Telecom

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    AP Telecom CEO Eric Handa on the outlook for the telecom industry.

  • Duration 4:32
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I -- wouldn't talk about industry trends and 2012 what about the Telecom.

Segment sector Eric -- he's CEO of -- AT Telecom he's here with more on what's moving wireless -- -- -- Verizon customers.

They're not happy about the company's new -- to two dollars B.

Bloody here's my point on this.

I was in Connecticut -- in the week and I -- my pump gassing -- ten cents more per gallon at by pay with a credit card and if I pay with cash let's all Verizon is essentially saying -- right if you pay your -- -- certain way you don't have to pay two dollar -- don't they have a right.

To do that these other companies do that.

It's a fair fair point good analogy Chris I think it remains to be seen what's canoe really transpire.

The new rate hike of two dollars is gonna -- we go into play January 15 next your -- so.

We'll see how -- doubtful plays out but it's it's basically.

It's a fair point.

You made the FCC is concerned and they're going to look into the matter look in the FCC do in this particular case.

Well I think they can review and assess the impact on consumers on however ultimately it's up to the consumers who -- -- -- -- over now.

And by the AT TT mobile deal -- -- as well huge deal that went by the wayside here recently what does that do in the industry for customers.

And what does it do for AT&T is they continue to try and search for partners and I guess it's really all about -- With them yet definitely about the the extended spectrum and bandwidth on from eight.

And die at the FCC is definitely decided to to not for predicting the transaction -- -- with with T-Mobile and AT&T.

However consumers' debt -- -- gonna continue get a a high degree of service and quality with AT&T is rules other operators.

And on the eighteenth he definitely needs that spectrum so whether they get it through acquisition or they continue to build out -- -- G and three G networks they're gonna need to do that to service their current customer base and their future -- where they gonna find it.

Well.

Big they need to find it somewhere -- because if they don't it's going to be choke point on -- network and I don't think they wanna go back to any any sort of time period were.

But does connects are happening in and customers getting frustrated on the phone calls as they its first few years back -- -- Verizon making smaller deals is -- that the deals that may not.

Raise eyebrows initially but as they continue to make smaller deals and partner with some smaller companies that do have some more band with.

One the FCC look at that and say wait a minute through these smaller deals.

You're sort of star in the corner the market a little bit here as well and limit competition.

It it's a challenge to provide nationwide coverage I am not everyone has a strong expertise and every metro market forever you -- rural market so.

It at any operator whether TTT -- Verizon has that inherent challenge to provide universal coverage.

But they have to balance the amount of investment spend vs the demand in the return on that investment.

Right -- right we're talking with gentleman Jim about where the growth and crystal is overseas -- it on Telecom is it is it enough to say China.

Brazil India brick countries or can you even look beyond that and see real growth.

Yet as you mentioned brick countries are certainly one area of five growth that's been probably -- past -- years however saturation starting to reach status brick countries we did the next -- -- that he can Telekom really is focused on with our clients -- our research is the maintenance so Mexico Australia Vietnam and Indonesia Nigeria.

And that that's a key take away it would be the need and the median market is the way I think investors in the -- -- operators are gonna look and point twelve.

What about studies a lot of the geopolitical.

-- that we've seen over the last -- certainly the Arab Spring.

On you can look at even I -- now starting to you -- Saber rattle if you will in the -- happen all the time but how does that affect our outlook on.

Telecom international.

Well not tremendous.

By product of the Arab Spring has been not choke points are going through Asia to Europe.

Submarine cable capacity has been effectively stopped going -- Egypt.

And what the industry to Telecom industries done.

Is decided to capitalize on a new route called the northwest passage and that's something and -- -- that you're gonna see there's companies such as Arctic fiber.

I -- networks and they're trying to capitalize on a a new route going over the melting ice cap from -- Japan coming into Iceland.

And that's gonna circumvent that Arab Spring political uprising going through Egypt's -- what are -- names of those companies you just mentioned emerald networks and or -- called think about those Lori.

Back to you Eric -- and -- -- -- happened here yeah.

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