AT&T, Verizon Continue Rivalry in New Year

AT&T is not in the same position as it was a year ago. Verizon Wireless is more of a rival. AT&T’s position is perhaps best seen how it was so adamant it was going to buy T-Mobile USA for wireless spectrum. The acquisition was withdrawn in a noisy battle.

Or consider Verizon Wireless’ possible deal with four cable companies, says MobilityTechzone’s Gary Kim. Verizon has pacts with SpectrumCo, a joint venture of Comcast, Time Warner Cable and BrightHouse Networks, and separately with Cox, to buy mobile licenses and to cross-sell broadband, mobile and pay-TV services, MobilityTechzone said.

“If the transactions are approved, Verizon Wireless will have 56 percent more 4G spectrum than AT&T in the top 10 markets and 46 percent more in the top 100 markets, giving it a ‘meaningful competitive advantage,’ says John Hodulik of UBS,” Kim adds.

There is also a possible “realignment” of the “cable versus telco” market, with “Verizon and cable TV” competing against “AT&T and satellite,” Kim stated.

When looking at the sector, Jeff Kagan, writing for E-Commerce Times, said, “It's all about spectrum and innovation. These are the two keys to long-term success – and not just for AT&T and Verizon, but for all the other wireless competitors as well, large and small.”

For example, it appears AT&T will soon acquire spectrum from Qualcomm FLO TV.

“This will be a quicker and easier solution,” Kagan said, as opposed to the failed T-Mobile deal.

In addition, Verizon may offer a service similar to Netflix during 2012, or, it could even buy Netflix, Kagan said.

Looking ahead at 2012, “Verizon is rockin' and rollin', while AT&T is struggling to regain its footing,” Kagan predicts.

In fact, he suspects Verizon may “pull ahead of AT&T” during 2012. Yet, he recalls that “AT&T does its best when it is under pressure. And suddenly, it is under pressure.”