Sprint Nextel Corporation (S), AT&T Inc. (T): How Do These Phone Companies Line Up?

Making the decision about which phone company is best for you to invest in depends on a few factors. First, it is important that the company is able to attractively price its services. Second, the firm needs to offer quality connectivity. Third, the company needs to be innovative. Let’s see where these three businesses line up.

Sprint Nextel Corporation (NYSE:S) finishes takeover

Now that Sprint Nextel Corporation (NYSE:S) has finished its nearly $22 billion takeover of America’s largest wireless carrier, it is truly a monster. It now controls about 78% of the former Sprint Nextel Corporation (NYSE:S) network and is now dubbed Sprint Corporation. I think this move puts the company in a competitive position to become a major mobile competitor.

Not long after the takeover, Sprint Nextel Corporation (NYSE:S) announced a new pricing plan that I think will drive the company to major profits. The new plan allows customers to have unlimited use for a set rate. This is an improvement compared to what AT&T Inc. (NYSE:T) and Horizon Lines Inc (OTCMKTS:HRZL) have been doing. Those companies have added a slew of fees which will likely turn customers off, placing those customers securely on Sprint Nextel Corporation (NYSE:S)’s client list.

AT&T Inc. (NYSE:T) has some advantages

AT&T Inc. (NYSE:T) has a superior LET network. This is one of the three most important factors for customers, along with screen size and battery life. Despite the superior LET, the firm may need to think again about the fees that it has added. After all, once Sprint Nextel Corporation (NYSE:S) is able to catch up to its LET network then AT&T Inc. (NYSE:T)’s competitive advantage will disappear.

AT&T Inc. (NYSE:T) could benefit from its innovation, however, which is a key factor at any technology firm. The company recently announced that it would team up with Sirius XM Radio Inc (NASDAQ:SIRI), to provide a telematics offering in Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) cars. As vehicles become more fully integrated with gizmos and gadgets, companies that are able to make headway in that development will realize major profits. AT&T Inc. (NYSE:T) certainly sees this, and the partnership both diversifies the company and positions it for stellar profits in the years ahead. As AT&T Inc. (NYSE:T) executive Glenn Lurie put it in a press release, “Your future car is going to be a smartphone with four wheels with powerful capabilities specifically built for a safe and enhanced customer experience.”