In a note released this week following earnings reports from some communications giants, Jennifer Fritzsche, a telecom analyst with Wells Fargo, specifically called out Level 3 and TWC as two companies going after more of the fiber market, at the expense of AT&T and Verizon, in particular.
“On the wireline side, there seems to be a rebirth in views on enterprise. [Level 3] and [Time Warner Cable] are quite positive … fiber is king, demand is there, a lot of business to take from the big firms ([AT&T and Verizon]). [AT&T and Verizon] don’t share this view and continue to be a bit more muted in their enterprise outlook," Fritzsche wrote, reported by Barron’s.
Fritzsche is among analysts industry-wide who are keeping a close eye on talk of an AT&T-DirecTV merger, and the impact it would have on wireless.
“The wireless side, we have fielded fewer questions on the pricing war and more on M&A," Fritzsche added. “Is [AT&T] really pursuing DirecTV? What does that mean for DISH? Would [Verizon] go after it? What about [Sprint] and [T-Mobile USA]?
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