Softbank's deal to acquire most of Sprint likely will be approved, but with some conditions, most observers might agree. Among those conditions notification requirements if Sprint plans to buy equipment from Chinese suppliers such as Huawei.
The U.S. government likely would not bar purchases, but would require notification if Sprint planned to buy such equipment for the core of its network. Precisely how that would work is a bit unclear, since government authorities would have no power to block such purchases.
But presumably the pressure not to so so would effectively restrain Sprint, which would not want to risk the ire of regulators or the possibility of losing out on government contracts.
There are other more subtle possible effects, should a technology oversight clause be attached as a condition for approval of the deal. Other suppliers using Huawei products might likewise reconsider whether that is necessary and useful.
Thursday, March 28, 2013
Softbank Sprint Acquisition Conditions are Likely
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Directv-Dish Merger Fails
Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
No comments:
Post a Comment