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Not only that, but because it switches to the faster provider, and assuming that Project Fi pays out to providers based on percentage of service used, it's much

Not only that, but because it switches to the faster provider, and assuming that Project Fi pays out to providers based on percentage of service used, it's much more in Tmo/Sprint's best interests to upgrade their service - considering the switch to their competitor is automatic and based on quality.

pyrocat 11y ago
That's a pretty big assumption.
- Vraxx 11y ago
  Seems like a reasonable assumption to me. I doubt they pay a flat rate to all providers they borrow from with Google charging by the 100 MB.
  - darkmighty 11y ago
    Even then a good strategy for the networks would be to build capacity on crowded areas where infrastructure is cheap and neglect all other areas for the second carrier.
  - abandonliberty 11y ago
    Google consistently tries to increase competition and make both hardware and network owners into a commodity. Meanwhile hardware and network owners madly fight to stay relevant, like the aggressive customization of Samsung's android Touchwiz or the various telecoms lobbying against net neutrality.
    - shkkmo 11y ago
      I don't think that t-mobile and sprint are opposed to commoditization. The expansion of the commoditization of mobile access gives them new ways to compete against at&t and verizon. The era of multi-year contracts and heavy device subsidies has primarily helped those with large market share maintain it. T-mobile in particular has been pushing to change how the market works and bring an end to some of the ways that customers have been locked in to carriers. I wouldn't be to surprised to seem them support further commoditization.
Throwaway90283 11y ago
Upgrading their service is expensive. T-Mobile upgrades, then Sprint has to upgrade to compete, then T-Mobile has to upgrade again, then Sprint... Instead what's going to happen, T-Mobile and Sprint both agree to offer the same performance, or focus on different regions. It's like selling slices of pizza on the street. If you're smart, you and your competitor agree to sell at $5/slice. If you drop to $4, sure you'll get more customers for a short period of time, but then your competitor drops to $4, and now you both just cut 20% off your revenue for no reason.
- striking 11y ago
  Further reading: https://en.wikipedia.org/wiki/Nash_equilibrium https://en.wikipedia.org/wiki/Nash_equilibrium
- javert 11y ago
  Technically, the pizza idea won't work, because more people will enter the market and compete on price. Doesn't apply for telecom since it's all monopolized and new competitors can't enter.

pyrocat 11y ago

That's a pretty big assumption.

Vraxx 11y ago
Seems like a reasonable assumption to me. I doubt they pay a flat rate to all providers they borrow from with Google charging by the 100 MB.
- darkmighty 11y ago
  Even then a good strategy for the networks would be to build capacity on crowded areas where infrastructure is cheap and neglect all other areas for the second carrier.
- abandonliberty 11y ago
  Google consistently tries to increase competition and make both hardware and network owners into a commodity. Meanwhile hardware and network owners madly fight to stay relevant, like the aggressive customization of Samsung's android Touchwiz or the various telecoms lobbying against net neutrality.
  - shkkmo 11y ago
    I don't think that t-mobile and sprint are opposed to commoditization. The expansion of the commoditization of mobile access gives them new ways to compete against at&t and verizon. The era of multi-year contracts and heavy device subsidies has primarily helped those with large market share maintain it. T-mobile in particular has been pushing to change how the market works and bring an end to some of the ways that customers have been locked in to carriers. I wouldn't be to surprised to seem them support further commoditization.

Throwaway90283 11y ago

Upgrading their service is expensive. T-Mobile upgrades, then Sprint has to upgrade to compete, then T-Mobile has to upgrade again, then Sprint... Instead what's going to happen, T-Mobile and Sprint both agree to offer the same performance, or focus on different regions. It's like selling slices of pizza on the street. If you're smart, you and your competitor agree to sell at $5/slice. If you drop to $4, sure you'll get more customers for a short period of time, but then your competitor drops to $4, and now you both just cut 20% off your revenue for no reason.

striking 11y ago
Further reading: https://en.wikipedia.org/wiki/Nash_equilibrium https://en.wikipedia.org/wiki/Nash_equilibrium
javert 11y ago
Technically, the pizza idea won't work, because more people will enter the market and compete on price. Doesn't apply for telecom since it's all monopolized and new competitors can't enter.