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Assuming T-Mobile continues their multi-year policy of never raising prices on existing customers I'm all for this. One stronger competitor to AT&T and Verizon
by koolba 7y ago
Assuming T-Mobile continues their multi-year policy of never raising prices on existing customers I'm all for this. One stronger competitor to AT&T and Verizon is much better than one almost competitor and an almost-dead-but-still-owns-bandwidth one.
- adventured 7y agoI agree with the spirit of what you said, however I would upgrade T-Mobile in that analysis. They're a beast of a competitor without Sprint, and they're slow-stomping both AT&T and Verizon. Grinding gains persistently year after year. They're adding millions of customers per year in the US, nearly all of which are being stolen from the competition. AT&T and Verizon are sitting on stagnant wireless businesses, while T-Mobile keeps getting bigger. Operating income hit $5.4 billion last year (up 100% in three years). $72 billion market cap, up from persistently losing money and worth just $10 billion seven years ago. Without Sprint they're on their way to a $120-$150 billion market cap and $10 billion in operating income in the next five years or so. And there's nothing AT&T & Verizon could do to stop it.
- tipsysquid 7y agoI used to think nearly the same way. But consider this systemic risk to wireless competition: If T-Mobile is not allowed to buyout/merge with Sprint, and Sprint continues the spiral that they are currently in, there is a possibility that AT&T and/or Verizon end up with more spectrum in the end. T-Mobile isn't nearly as capitalized to buy Sprint's premium spectrum on the open market like the other 2 competitors are.