Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Wired)   T-Mobile and Sprint were allowed to merge because there was a strong new competitor emerging...Dish Network   (wired.com) divider line
    More: Asinine, Mergers and acquisitions, 3G, T-Mobile, Charlie Ergen, Donald Trump's Antitrust Division, Donald Trump, Sprint merger, behavioral remedy  
•       •       •

426 clicks; posted to Business » on 25 Feb 2021 at 1:35 PM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



10 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-02-25 12:13:06 PM  
Ok the flip side, the merger has really been a boost to T-Mobile's 5G network, giving them a lot of prime mid-band spectrum that is at the sweet spot between coverage and speed. This means that for the next year or so, they are going to be making AT&T and Verizon look like chumps in the 5G market, especially now that they have launched a new plan with no limits on how much high-speed data you can use (aside from a 40GB limit on tethering). Verizon and AT&T don't look like they will have decent 5G networks until they can get their C-band spectrum deployed, which could be months of not years.

I personally think it is better to have three strong carriers to compete with each other instead of a duopoly between AT&T and Verizon plus two smaller carriers that were not able to compete as directly with the big duopoly. Saying we went from four to three carriers is an oversimplification that ignores the relative size and spectrum holdings of the carriers. Without Sprint's 2.5GHz spectrum, T-Mobile wouldn't be nearly as competitive right now.

https://www.theverge.com/2021/2/24/22​2​97311/tmobile-5g-mid-band-magenta-max-​unlimited-data
 
2021-02-25 1:43:29 PM  
But DirecTV fellates caprines.
 
2021-02-25 2:00:43 PM  
A fourth competitor in the market was NEVER going to come from anything Ergen touches (ie Dish).

An actual new competitor into the mobile market is going to come from Musk and Bezos and operate from LEO. Keeping fleets of satellites running is likely a lot cheaper (and provide a GLOBAL footprint) than keeping tens of thousands of cell sites running.
 
2021-02-25 2:05:20 PM  

Mad_Radhu: Without Sprint's 2.5GHz spectrum, T-Mobile wouldn't be nearly as competitive right now.


So hold another auction.

The benefit of four providers made two markets. Two premium providers (T and VZ) and two discount providers (T-mo and S). Each of those markets priced against the opposite company. That's why AT&T and VZ pricing has always been exactly the same while T-mo and S pricing also lines right up. Merging the two discount providers eliminated the bottom-tier competition and will allow T-mo to ease their prices up quite a bit. Just need to be a little bit lower than T and VZ to maintain their position as the low-cost provider.
 
2021-02-25 2:10:15 PM  

madgonad: A fourth competitor in the market was NEVER going to come from anything Ergen touches (ie Dish).

An actual new competitor into the mobile market is going to come from Musk and Bezos and operate from LEO. Keeping fleets of satellites running is likely a lot cheaper (and provide a GLOBAL footprint) than keeping tens of thousands of cell sites running.


I'm not sure the laws of physics allow for a phone-sized low-power phased array that can communicate with Starlink satellites. Plus cell phones need to work indoors, so satellite isn't an option to replace cell phone networks.

The only place they will really compete is home internet service, and even there may not be a lot of overlap between the places where Starlink is ideal and where the cell phone carriers offers home 5G internet service. It'll probably break down to:

Urban/suburban areas: Cable/fiber
Semi-rural/fringes of suburbs: 5G home internet
Rural/remote areas: Starlink
 
2021-02-25 2:22:12 PM  

madgonad: Mad_Radhu: Without Sprint's 2.5GHz spectrum, T-Mobile wouldn't be nearly as competitive right now.

So hold another auction.

The benefit of four providers made two markets. Two premium providers (T and VZ) and two discount providers (T-mo and S). Each of those markets priced against the opposite company. That's why AT&T and VZ pricing has always been exactly the same while T-mo and S pricing also lines right up. Merging the two discount providers eliminated the bottom-tier competition and will allow T-mo to ease their prices up quite a bit. Just need to be a little bit lower than T and VZ to maintain their position as the low-cost provider.


Part of the terms of the merger was that T-Mobile wouldn't raise their prices on their plans.  Currently, there haven't been any price increases compared to pre-merger prices. They launched a new Magenta Max plan, but it costs the same as the old Magenta Plus plan it replaces.
 
2021-02-25 3:21:48 PM  

Mad_Radhu: madgonad: Mad_Radhu: Without Sprint's 2.5GHz spectrum, T-Mobile wouldn't be nearly as competitive right now.

So hold another auction.

The benefit of four providers made two markets. Two premium providers (T and VZ) and two discount providers (T-mo and S). Each of those markets priced against the opposite company. That's why AT&T and VZ pricing has always been exactly the same while T-mo and S pricing also lines right up. Merging the two discount providers eliminated the bottom-tier competition and will allow T-mo to ease their prices up quite a bit. Just need to be a little bit lower than T and VZ to maintain their position as the low-cost provider.

Part of the terms of the merger was that T-Mobile wouldn't raise their prices on their plans.  Currently, there haven't been any price increases compared to pre-merger prices. They launched a new Magenta Max plan, but it costs the same as the old Magenta Plus plan it replaces.


They're not prevented from raising prices ever, just in the short term. IIRC the deal was not to raise prices on existing customers plans, new plans and new customers on the other hand don't have the same protection.
 
2021-02-25 4:25:07 PM  
The Trump administration knew or should have known the plan with Dish was never going to work-they simply didn't care.  However, once a merger is approved and goes through, I also don't like the government coming back to unwind them years later.
 
2021-02-25 8:00:57 PM  
All I've gotta say is I was a Sprint consumer for 10+ years.  Since the merger went through I've had days where I send a text, and get an error message.  Send another, another error message.  Send a text to someone else, error message.

The error message?  "This text could not be sent".

Yeah.  Thanks for the help.  I used to think it happened at the end of the month so I hit some unwritten limit.  Then this month, it happened the first week of Feb.

I typically go to bed, in the morning texts work fine.

Contact customer service?  What customer service.  Everything goes to menus that loop.

Considering 99% of my phone communication is via text messages (seriously, don't leave voice mail.  Send me a farking text) This Is A Huge Problem.
 
2021-02-26 3:20:41 PM  
It was either merge or buy Sprint's assets at bankruptcy auction in a couple of years. Sprint's debt incurred from the Softbank takeover was sinking it.
Merger is the better option for Sprint customers,vendors, and employees. T-Mobile is spending billions, mostly with local contractors across the country on all those upgrades.
 
Displayed 10 of 10 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking





On Twitter



  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.