Small Wireless Players Get Squeezed But Consolidation Still Far: MetroPCS Communications Inc (PCS), Leap Wireless International, Inc. (LEAP)

This further corroborates the market’s view that smaller players often do not have bright futures in this capital-intensive business. While MetroPCS’ proposed combination with T-Mobile is a case in point, it is no secret that Leap Wireless is still trading at such high levels because it is a takeover target.

However, another round of industry consolidation appears unlikely anytime soon, since most operators have already placed their bets. Over the next few quarters, Sprint and T-Mobile will be progressing with their planned mergers with Clearwire and MetroPCS, respectively. Having already faced regulatory hurdles with its attempt to buy T-Mobile, AT&T (and by extension Verizon) might be more willing to try to scoop up one of these smaller players instead.

The article Small Wireless Players Get Squeezed But Consolidation Still Far originally appeared on Fool.com and is written by Jacob Wolinsky.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.