3 ms·

This is not really a prime example of good competition. The only reason T-Mobile can do this is because they are basically getting a massive subsidization from

by skrause 13y ago

This is not really a prime example of good competition. The only reason T-Mobile can do this is because they are basically getting a massive subsidization from the German mother company, the German Telecom, who is behaving in its German home market just like AT&T behaves in the USA. As soon as T-Mobile gains any significant market share it will be just like the others.

scalenemuscles 13y ago
So how exactly does getting subsidized by a mother company to offer a compelling package not equal good competition?
- gcb0 13y ago
  think of this as microsoft and sony taking a hit for every console they sell. It's anti-competitive because other console manufacturers can't do that. in the end, you end up with a result like in politics. Whoever has more money wins the whole market. The market pretty much exchanged short term benefits (cheaper console, better phone plans) for worse longer term problems (lame games because you have no choice, more expensive phone plans because you have no choice)
  - irishcoffee 13y ago
    Ah, it was always my understanding that Microsoft and Sony did take a hit selling their console, and made the money back in things like controllers and games. Do they make a profit on the console itself now?
narenl 13y ago
The U.S consumer benefits regardless. if the German taxpayer or German customer of a monopoly subsidizes the U.S consumer that is a German market issue. Your second point has some merit though: that once they gain significant market share in the U.S, T-mobile can become anti-customer. But T-mobile's prepaid plans and now this international texting gambit might force other carriers to follow suit before T-mobile gets to that significant market share. At that point T-mobile cannot afford to become anti-customer because other carriers would have started matching T-mobile's pro-customer offers in the meantime.
raverbashing 13y ago
I think you mean Deutsche Telekom (yes, I agree with it behaving like AT&T) At least their competitors "get" more things better than them, so for the most part they're not even an option.

by skrause 13y ago

scalenemuscles 13y ago

So how exactly does getting subsidized by a mother company to offer a compelling package not equal good competition?

gcb0 13y ago
think of this as microsoft and sony taking a hit for every console they sell. It's anti-competitive because other console manufacturers can't do that. in the end, you end up with a result like in politics. Whoever has more money wins the whole market. The market pretty much exchanged short term benefits (cheaper console, better phone plans) for worse longer term problems (lame games because you have no choice, more expensive phone plans because you have no choice)
- irishcoffee 13y ago
  Ah, it was always my understanding that Microsoft and Sony did take a hit selling their console, and made the money back in things like controllers and games. Do they make a profit on the console itself now?

narenl 13y ago

The U.S consumer benefits regardless. if the German taxpayer or German customer of a monopoly subsidizes the U.S consumer that is a German market issue. Your second point has some merit though: that once they gain significant market share in the U.S, T-mobile can become anti-customer. But T-mobile's prepaid plans and now this international texting gambit might force other carriers to follow suit before T-mobile gets to that significant market share. At that point T-mobile cannot afford to become anti-customer because other carriers would have started matching T-mobile's pro-customer offers in the meantime.

raverbashing 13y ago

I think you mean Deutsche Telekom (yes, I agree with it behaving like AT&T) At least their competitors "get" more things better than them, so for the most part they're not even an option.