Infrastructure

Between AWS and Cingular, both have deals with Ericsson, Nokia, Nortel Networks, and Siemens.  While initially the fact that there is already overlap favors these incumbent providers, the new company will likely act quickly to take advantage of improved buying power to negotiate technology improvements, better contract terms, and improved pricing.  In addition, all carriers are seeking operational efficiencies to cut costs.  Everything else considered equal, this translates to fewer, high quality suppliers, making it easier for operational personnel to care for the network.  This will ultimately lead to competition among the incumbents to become one of the 2-3 infrastructure suppliers that will remain.

Handsets

With more clout, the new company will also be able to better affect the handset market in term of bargaining power.  Hungry competitors such as Motorola and Samsung are sure to be nipping at the heals of Nokia even more as the new company demands price concessions and specific handset features, functionality, and technology improvements.

Towers

While a Cingular/AWS merger represents a certain degree of overlap in coverage areas (and thus tower requirements), industry experts believe that the overall long-term effect will not be detrimental to the RF industry (towers, antennas, and supporting equipment).  As industry consolidation continues, and competition intensifies, AWS and its competitors will most likely engage in network build-out to improve both coverage and capacity, especially in urban areas.

Services

Software and service bureau companies will also vie for position for the newly combined company. In particular, at stake will be the highly coveted billing, managed services, clearing and settlement segments.