Rebirth of England.

Chapter 727 Merger?

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

When he came to America this time, 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 the child to come back to you, then 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 ready to enter into marriage. After all, given his current situation, no matter which other woman he marries again, it will be difficult for other people to accept it.

Even though Barron tried to say sweet words to Amanda, it seems that Amanda doesn't buy it at all...

Fortunately, Amanda had at least her cousin Lydia Hearst by her side 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 already tested Amanda's attitude through Lydia before, and he was mentally prepared for this.

After O2 Telecom completed its acquisition of T-Mobile USA, O2 USA's market share in North America has increased significantly compared to T-Mobile's previous market share after using their competitive strategy of low-priced packages in the European market.

"In the North American market, we were the first to lower our rates and provide users with more affordable family packages to attract more family users..."

O2 USA's CEO told Barron's:

"This has indeed helped us achieve significant gains in market share, but this has also resulted in lower profit margins. However, compared with the increase in the number of users, this is worth it."

Of course, if we can snatch more users from other operators, a short-term decline in profit margins can be tolerated.

But after O2 Telecom takes action, other telecom operators may also adjust their rates voluntarily or forcedly, which will also intensify competition among 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. Companies that are already among the top in the market rarely actively use this method of reducing revenue per customer.

In addition, some people have suggested that the company could increase its market share in North America by acquiring other operators.

After all, although O2 USA is now the third largest telecom operator in North America, in fact, the market share of the top two telecom operators, AT&T and Verizon, is much higher than that of other operators. If O2 USA can merge with the fourth largest operator, Sprint, although the new company after the merger will still be the third largest telecom operator in the United States, after the merger of the two companies, its number of users can barely be compared with the top two operators, AT&T and Verizon. The advantage of this merger is that it can have a greater scale effect. For the merged company, it can uniformly upgrade equipment and save costs.

However, this merger still faces considerable resistance. In addition to the fact that it is not so easy for American-related institutions to approve mergers and acquisitions of this scale, the main problem lies in the current 3G network. O2 Telecom uses the WCDMA standard, while Sprint uses CDMA2000, just like China Mobile and China Unicom, which are difficult to integrate.

"Technical obstacles are not unsolvable. 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 regulators, or in other words, from AT&T and Verizon. They certainly don't want us to merge with Sprint to form a more threatening company, so they will inevitably lobby frantically to prevent the merger from being approved."

This is understandable. After all, companies like AT&T and Verizon are stronger than them in terms of relevant government resources, mainly connections.

Of course, this does not mean that such a merger is doomed to fail. The problem is that even if the merger is allowed, it will inevitably come with some stringent 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 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 which result has greater development potential compared to O2 Telecom's independent development in the North American market.

After all, not all mergers of increasing scale will lead to good results. Even most mergers may not ultimately lead to stronger competitiveness. Only a few mergers can be called successful.

……

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

She said this with a smile after meeting Ivanta in Los Angeles.

"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, it will be a little troublesome, but I still have confidence in Android."

As Barron said, Google will not give up on mobile operating systems so easily, 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 the search technology that Google is proud of can occupy the vast majority of the market share based on 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.

(End of this chapter)