The threat of technology is most acute in the TMT spaces because these are pure information industries where the Internet upends incumbent business models. So it is interesting to see how well the sector is doing during earnings season. In thinking about the longer-term, I want to focus on Verizon, AT&T and Comcast.
TMT is now a sector
The key driver in the TMT sector is the Internet and high-speed data transfers. When the original Internet bubble popped, people at sell-side firms talked a lot about technology, media and telecom or TMT as one space. But it wasn't one space and the nascent attempts at consolidation failed, most spectacularly in the case of the AOL Time Warner merger.
Basically, the synergies in the TMT space were not robust enough to justify the level of consolidation...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.