Chapter 727 Merger?

In mid-January, after spending some time with Bonnie, Chrissy and the children at Grace Lavender Manor, Barron left Australia for the United States.

This time when he came to the United States, the first place he arrived was California.

At the estate where Amanda lived, Barron met their child, William Hearst.

Although Amanda Hearst did not stop Barron from visiting William, she still did not give in and was still prepared to raise the child alone.

"If you want me and my child to come back to you, the only possibility is that we get married and you can give William a normal family environment."

This is what Amanda told Barron at the time.

Although Barron has divorced Bonnie, he is no longer preparing to get married. After all, with his current situation, among other women, no matter who he marries again, after all, for other people, These are all things that are difficult to accept.

Even though Barron tried to "sweet talk" Amanda, it seems that Amanda doesn't like this at all now...

Fortunately, by Amanda's side, at least her cousin Lydia Hearst was there to help Barron so that he could get news about Amanda and the child in time.

In this case, Barron left the manor where Amanda was after visiting the children.

Of course, Barron was not too disappointed. After all, he had tested Amanda's attitude through Lydia before, and he was mentally prepared for this.

After O2 Telecom completed the acquisition of T-Mobile USA, O2 USA used their competitive strategy of low-price packages in the European market to gain a considerable market share in North America compared to T-Mobile. improve.

"In the North American market, we took the lead in lowering tariff standards and providing users with more affordable family packages to attract more family users..."

The CEO of O2 USA introduced to Barron:

"This has indeed enabled us to achieve quite obvious results in terms of market share, but on the other hand, it will also cause a reduction in profit margins, but compared with the increased number of users, it is worth it."

Of course, if we can compete for more users from other operators, the short-term decline in profit margins will be tolerated.

However, after O2 Telecom takes action, other telecom operators may also take the initiative or be forced to adjust their tariffs, which will also intensify competition between them.

In fact, this low-price strategy has not only been successful for O2 Telecom in the European market, but SoftBank Group has also achieved great success in the Japanese market after acquiring Vodafone Japan.

However, this is usually a method used by telecommunications companies with relatively low market share in order to expand their scale. For example, if they are one of the best companies in the market, they rarely actively use this method to reduce single customer revenue.

In addition, some people have suggested that it can increase its market share in North America through mergers and acquisitions with other operators.

After all, although O2 USA can now rank as the third largest telecom operator in North America, in fact, the market share of the top two telecom operators AT\u0026T and Verizon is much higher than that of other operators. If O2 USA can be the same as the third largest telecom operator, The four major operators Sprint merged. Although the new company after the merger is still the third largest telecom operator in the United States, after the merger of the two, its number of users has barely reached the same level as the top two operators AT\u0026T and Verizon is on par.

The advantage of this merger is that it can have greater economies of scale. For the merged company, it can upgrade equipment in a unified way and save costs.

However, there is still a lot of resistance to this merger. In addition to the fact that US-related institutions are not so easy to pass mergers and acquisitions of this scale, the main problem lies in the currently used 3G network. The WCDMA standard used by O2 Telecom. Sprint uses CDMA2000, which is like China Mobile and China Unicom, and it is difficult to integrate.

"Technical obstacles are not insurmountable. As long as we are willing to pay enough, we can use the same network standard in the next generation 4G network..."

Barron heard the other party say:

"But even so, more resistance will come from relevant regulatory agencies, or in other words, from AT\u0026T and Verizon. They definitely don't want us to merge with Sprint to form a more threatening company, so it is inevitable "Lobbying will be frantic to prevent the merger from being approved."

This is understandable, after all, companies like AT\u0026T and Verizon will be stronger than them in terms of relevant government resources, mainly in terms of personal connections.

Of course, this does not mean that this kind of merger is destined to not be approved. The problem is that even if the merger can be allowed, it will inevitably come with some strict conditions - just like in Barron's previous life, T-Mobile and Sprint were eventually allowed to merge, but both Sprint and T-Mobile paid considerable "sincerity" for this.

For example, when approving the deal, the U.S. Department of Justice ordered Sprint to divest certain assets, including Boost Mobile and some wireless spectrum; and T-Mobile must also allow Dish Network to access its network within seven years to help it become a new national telecommunications operator and increase market competition.

Therefore, before considering whether to initiate the acquisition of Sprint to achieve a merger between the two, they need to weigh whether such a result is more promising than O2 Telecom's independent development in the North American market.

After all, not all mergers of stacked scale can have good results, and even most mergers cannot ultimately bring stronger competitiveness. Only a few mergers can be called successful.

…

"It seems that Google's GOS system is not successful now, at least not as successful as they expected..."

After meeting Ivanta in Los Angeles, she said with a smile.

"But it seems that they are not going to give up so easily, baby. They just announced a while ago that they will continue to increase their investment in the mobile operating system business."

"Yes, this will indeed be a little troublesome, but I am still very confident in Android."

As Baron said, Google is not so easy to give up on mobile operating systems, which is also related to their strategy.

It is not difficult for Google to see the potential of the future mobile Internet market, but the problem is that Google's proud search technology can occupy the vast majority of the market share in terms of PC operating habits.

But if users' Internet habits change, mobile Internet explodes, and people start using smartphones to surf the Internet, this will be a crisis for Google.