T-Mobile Will Help AT&T in SMB Space

T-Mobile USA will strengthen AT&Ts position in the small and medium-sized business market, according to a new report.

T-Mobile USA will help AT&T among businesses with fewer than 10 employees and in certain vertical industries like construction, according to AMI-Partners, which specializes in IT, Internet, telecom and business services strategy, venture capital and market intelligence.

Compared to AT&T or Verizon, these T-Mobile SMB customers reported greater interest in adopting hosted services from a service provider, as well as indicating greater interest in purchasing multiple, adjacent SaaS applications,” said Brian Galgay, manager of SMB Cloud Services at AMI-Partners. The T-Mobile acquisition creates differentiated SMB sales for AT&T and has enormous upside potential.”

AT&Ts $39 billion acquisition of T-Mobile USA will leave two mobile operators AT&T and Verizon Wireless with control of three out of every four customers in the small and medium-sized business market, according to AMI-Partners.

Verizon Wireless and AT&T controlled 32 percent and 28 percent of the SMB market, respectively, before AT&T announced plans to acquire T-Mobile USA on March 20th. T-Mobile controlled just 8 percent of the market compared to 12 percent for Sprint Nextel.

AMI-Partners found that Verizon Wireless holds a strong position in the SMB market, but serves more mainstream” customers than AT&T, whose customers are more tech savvy.

AT&T, as the first provider in the US to offer the iPhone, attracted valuable segments of the SMB market, notably early adopters of technology and specialized mobile workers,” Galgay said. AT&T SMB customers annual IT spending is roughly equal to Verizon SMB customers spending. But AT&T SMB customers are more IT-savvy, focusing more budget on newer technologies beyond smartphones, such as tablets.”

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