Iliad’s surprise bid for T-Mobile would leave Sprint the least able to compete if wireless prices tumble, according to the "Strategy Analytics Wireless Operator Strategies (WOS)" service report (http://bit.ly/1kqfg6V).
While Strategy Analytics believes the bid will ultimately fail, it represents a wake-up call for all the carriers in the increasingly saturated market. Key findings from the report:
° Iliad’s Free has had a dramatic impact on the French market, driving a 29% decline in service revenue and 19% decline in EBITDA since its launch.
° Iliad’s founder, Xavier Niel, is also an investor in Israel’s Golan Telecom, who’s aggressive mobile launch two years’ ago has had an equally dramatic impact on the market.
° Despite good logic to a bid by an operator keen to play outside the contracting European market, Iliad is unlikely to have an appetite for a bidding war with Softbank.
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