Friday, August 5, 2011

MtetroP{CS, Leap Troubles Not Helpful for AT&T?

A 40 percent -plus plunge in the stock prices of Leap Wireless International and MetroPCS Communications, triggered by disappointing quarterly results, could be bad news for AT&T, the Wall Street Journal reports. The reason, of course, is that AT&T has touted the amount of regional competition as evidence that U.S. mobile markets would remain robustly competitive even after a completed AT&T purchase of T-Mobile USA.

Any sign that the regional competitors are not faring so well would raise doubts about the ultimate state of competition in the mobile market.

AT&T's Great Leap Back WSJ.com (subscription required)

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