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News | 01/27/2004 5:00 am EST

AT&T Wireless/Cingular merger good news
A merger between AT&T Wireless and Cingular would be good for both companies, according to U.S.-based telecom analyst Jeff Kagan. He writes in an email to Report on Wireless that not only would the merged entity become the largest wireless provider in the U.S., it would also be a healthier company "with more revenue, more market share, more spectrum and lower costs since there will be a lot of overlap in back office expenses that they will trim." Kagan also writes that there is pent-up demand for consolidation in the wireless industry and this might be the kick-start it needed. "I expect that when the dust settles on wireless consolidation we’ll see three or four competitors and lots of smaller ones in a much healthier industry where each company has higher revenue and comparatively lower costs."

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