What Happens When T-Mobile Joins the 'Framily?' Lots of New Ad Spending


When it comes to the proposed $32 billion union of Sprint and T-Mobile, nothing is settled. But if history is a guide, the merger of the third- and fourth-largest U.S. wireless companies will lead to a surge of new ad spending, in the short-term.

T-Mobile and Sprint will likely boost spending to create awareness for the combined — and possibly rebranded — company, while much-larger rivals AT&T and Verizon Wireless will likely respond, seeing an opportunity to wrest away subscribers confused about the deal.

“There’s going to be a big influx of spending,” said Carrie MacGillivray, VP-mobile services at IDC. “AT&T and Verizon are going to be loath to create significant noise.”

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