TDS CEO says wireless consolidation falls to large carriers

TDS President & CEO LeRoy Carlson said today that meaningful consolidation in the wireless industry is a task that falls to the six large national carriers.

Speaking at the Morgan Stanley 7th Annual Global Communications Conference, Carlson said that M&A activity among these carriers -- AT&T Wireless, Cingular Wireless, Nextel, Sprint PCS, T-Mobile (recently re-branded from VoiceStream), and Verizon Wireless -- would help the entire sector.

“If we get consolidation among the six national players, the industry will earn a better return,” he said.

TDS is the majority owner of U.S. Cellular, which operates in 26 states and is the country’s eighth largest wireless provider.

Consolidation among the large wireless players is widely anticipated and desired among wireless industry observers, who argue that such a crowded marketplace creates severe pricing pressures that are ultimately detrimental to the entire sector. According to Carlson, the large wireless carriers are the ones with the ability to make this happen.

“They have the wherewithal and they’re the one that really have to step up and do that,” he said.