Technology Development

Whomever merges with AWS, it will likely lead to a increased focus on W-CDMA technology development and deployment as a competitive offering to CDMA2000 based systems offered by Sprint PCS, Verizon Wireless, and Western Wireless. The combined power of the likes of Cingular or T-Mobile with AWS will improve the deployment and operation of GPRS in terms of coverage area and capacity.

The often forgotten (at least in the US) intelligent network standard known as Customized Applications for Mobile Enhanced Logic (CAMEL), may also have a bolstered position due to network consolidation.  While arguably certain aspects of the CAMEL standard are intended to improve seamless service while roaming, one of the biggest hurdles to deployment and operation is getting each mobile network operator to deploy the same infrastructure (software for SCP, MSC, HLR, and VLR such as application, triggers, user profile, etc.)  A combined company would be in a much better position to offer ubiquitous technology and thus ubiquitous services such as CAMEL-based prepay, GPRS, and others.

WiFi investment will increase as the combined company will seek to differentiate itself by being a full service provider versus the competition.  Convergence between WiFi and 2.5G/3G will intensify, as the combined company will seek to offer both a full range of services as well as seamless service between its wireless data offerings.  This will represent opportunities for WLAN suppliers to offer various solution aspects including equipment, software, venues, and services.

Finally, there will be a huge push to do away with the old TDMA network, allowing for the new company to realize network efficiencies from operating just one standard.  This will also catalyze the need for expanded network coverage build-out as the old AMPS standard will gradually go away as a fall-back to TDMA users in poor digital coverage areas. 

Sales and Distribution

Perhaps the biggest and/or most immediate impact will occur within the new company’s distribution channels.  Overlap at retail sales locations will lead to consolidation.  Commission structures for resellers will be renegotiated in favor of the new company.  As the trend away from handset subsidization continues, the new company will also negotiate improved prices for handsets, allowing it to offer lower priced phones for mass market and higher priced phones for power users.  The combined company will also negotiate special deals with suppliers to allow for an even bigger push into GSM, allowing AWS (and Cingular, if they are the acquirer) to offer great incentives for customers to switch to GSM from TDMA.