http://online.wsj.com/article/SB10001424052748704433904576212810008230654.html?mod=WSJ_hp_LEFTTopStories

Well, all I can say is YIKES. That is what I get for listening to stock analysts. Congratulations to AT&T.

AT&T pulled the wool over a lot of people’s eyes including mine. The mainstream media had me believing that Sprint and T-Mobile would cut a deal. I had originally opposed the idea of any kind of merger between Sprint and T-Mobile. However, with time and circumstances even I believed it could be done and a merge of some kind had to be done.

The AT&T and T-Mobile merger can work from a business and technical perspective. However, it remains to be seen if the FCC will allow it. I will not even attempt to make a prediction. I need to think about this.  I am sure the FCC will say something about fewer choices for the consumer.  However, I doubt the FCC will block the merger; just raise enough dust to worry folks.  The Street will go crazy if the merger does not happen because M&A's generate fees and business on Wall Street.

A combined AT&T and T-Mobile will result in a mega-sized wireless carrier, larger than either Verizon Wireless or Sprint Nextel. The combined company, which I assume will still be called AT&T (Mobility or Wireless) will need to develop a coherent growth strategy. I am sure we will hear from AT&T and T-Mobile soon enough.

The big question now is: What should Sprint do?

A few years ago, I had stated that a merger between Sprint and Comcast made sense to me. It still does. Unlike AT&T, Sprint does not have the same spectrum crunches. What is clear to me is that this merger between AT&T and T-Mobile will require a rapid and thoughtful response from Sprint.

Sprint needs to be careful not to be hasty in its plans but then again, Sprint needs to do something. My suggestion to Dan Hesse is to focus on content distribution/management.