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Thread: Sprint Merger: T-Mobile promises not to raise prices for 3 years

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    Sprint Merger: T-Mobile promises not to raise prices for 3 years

    https://www.usatoday.com/story/tech/...ed/2775521002/

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    T-Mobile CEO John Legere typically proposes deals to wireless consumers. Now he is offering one to the Federal Communications Commission.

    If the FCC approves the telecom company's $26 billion merger with competitor Sprint, T-Mobile will put price increases on hold for three years, Legere said in note sent this week to FCC Chairman Ajit Pai.

    Some critics have opposed the deal, announced in April, saying the elimination of one of the four largest wireless providers – Sprint is the No. 4, behind Verizon, AT&T and T-Mobile – will lead to higher prices and harm consumers.

    "To remove any remaining doubt or concerns about New T-Mobile’s prices while we are combining our networks over the next three years, T-Mobile today is submitting to the Commission a commitment that I stand behind – a commitment that New T-Mobile will make available the same or better rate plans for our services as those offered today by T-Mobile or Sprint," Legere said in the letter dated Monday. "We believe this merger makes consumers better off, and we're willing to put our money where our mouth is. Period."

    Those plans and rates will be made available to Sprint customers after the merger closes, which the companies hope to complete in the first half of this year, they say. However, these maintained rates may need to be adjusted should taxes, fees or third-party surcharges go up, "as these increased costs are not within the control of New T-Mobile," the company said in a separate letter to the FCC.
    “The Internet wasn’t meant to be metered in bits and bytes, so it’s insane that wireless companies are still making you buy it this way. The rate plan is dead — it’s a fossil from a time when wireless was metered by every call or text.” John Legere 1/5/2017

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    For three years.. what happens after the three if they overtake Verizon? It wouldn’t make sense financially to keep low prices then .


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    Quote Originally Posted by CircuitSwitched View Post
    For three years.. what happens after the three if they overtake Verizon? It wouldn’t make sense financially to keep low prices then .


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    After three years prices will almost surely go up. At the least tmobile will take away things

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    As a USA citizen I have the right to criticize my government. My thanks for this is endless in magnitude.

    Fascism is here led by a racist, hypersensitive, crass, immoral psychopathic traitor, narcissist liar committing High Treason against the USA.

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    Tello x2 (Sprint) $5 1-use/3mo no exp by 06.03.19

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    Oddly enough I've seen my cellular devices go down in price and keep adding more data. My 2014 gophone account started out at about 6GB of data at $65/mo and over time the middle plan went up to 5GB of data and I moved down to that $40-45/mo plan and then discovered callingmart which got me to ~$36/mo. Sense then that dollar amount has gotten up to 8GB of data with carryover.

    Now I'm looking at Mint with as low as ~$20-25/mo for 8GB of data, if the coverage in my area can come close to AT&T I'll be happy to use T-Mobile.

    When you compare this to Europe prices we are still paying too much but honestly with some shopping around I'm seeing things get better over time.

    Just because they have these new unlimited**-+ with device financing and insurance plans built in doesn't mean you have to use them.

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    Well at least those Sprint customers on those cheap $25 plans can breathe easy for the next 3 years.

    I’m grandfathered on a ONE Plus Promo plan with a few free extras. I’m keeping it. You won’t hear me complaining about a price hike in 3 years for new customers.

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    Some Companies are paying Lobbyists to try and stop this merger using politician to spike the deal. The DOJ has already moved past the competition phases of this merger as well as discounted moving from four to three networks. Since when has America companies had to lock in retailers prices for multiple years?

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    Quote Originally Posted by CircuitSwitched View Post
    For three years.. what happens after the three if they overtake Verizon? It wouldn’t make sense financially to keep low prices then .

    If they overtake Verizon, then Verizon can become the value carrier and lower their prices.

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    Quote Originally Posted by jet1000 View Post
    If they overtake Verizon, then Verizon can become the value carrier and lower their prices.
    With all the customer gains TMobile has had over the past few years I wouldn't be surprised if they did pass verizon not too long after the deal

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    Quote Originally Posted by shilohcane View Post
    Some Companies are paying Lobbyists to try and stop this merger using politician to spike the deal. The DOJ has already moved past the competition phases of this merger as well as discounted moving from four to three networks. Since when has America companies had to lock in retailers prices for multiple years?
    According to the Wall Street Journal there has been very little lobbying against the merger:

    "If America’s tech and telecom giants have an opinion about T-Mobile US Inc.’s plan to reshape the wireless industry by taking over Sprint Corp., most are keeping it to themselves.

    Few large companies have gone on record to back or oppose the roughly $26 billion merger, which would combine the country’s No. 3 and No. 4 carriers. Fewer still are using their lobbying prowess to fight the deal behind the scenes, people familiar with the matter said." See https://www.wsj.com/articles/few-riv...ger-1535482584 .

    Probably Verizon and AT&T just don't care that much. They have more than 2/3 of the market and they own the valuable corporate and government space where Sprint and T-Mobile have very little presence. It's like if Mazda and Mitsubishi decided to merge, do you think that Toyota and Honda would fight the merger?

    AT&T and Verizon may actually LIKE the T-Mobile/Sprint merger because the price pressure from Sprint and T-Mobile, both of which are offering deals bordering on desperation, in both their postpaid and prepaid offerings, may be reduced. Free Netflix. Free Amazon Prime. Free Hulu. Free Google One. Free bowl of chili at Wendy's (okay that last one isn't real). While prices may not go up at Sprint, T-Mobile, Boost, MetroPCS for three years, all these freebies likely won't continue.

    AT&T and Verizon must believe that the merged company is not going to spend the billions of dollars it would take to duplicate the coverage that AT&T and Verizon currently offer and which is the reason that they don't have to compete on price quite as much as they would otherwise have to.

    What articles have you read that say that there are companies paying lobbyists to stop the deal? The only major entity I've seen that is opposed to the deal is the CWA (Communications Workers of America) because of the expected job losses that would result. Altice and Dish also oppose the merger, but they have little influence. Altice is a Sprint MVNO worried about what will happen to them after the merger.

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    Either John is being nice for marketing or the FCC told T-Mobile they can’t raise prices and John just twisted it around as if he’s making a nice gesture.

    Wasn’t AT&T told they can’t raise prices after the TW merger or did AT&T say they’re not going to... because they broke that “promise” real quick.


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    It’s been said from the beginning that AT&T and Verizon wouldn’t oppose the merger because a triopoly is better than a duopololy and two value players. If there was no T-Mobile that was desperate to grow 5 years ago but would have become insolvent with the equipment subsidies, AT&T and Verizon would still have contracts. Granted, it benefited them to not take a $450 accounting loss everytime someone upgraded (and the recoup it over the next 24 months), but they weren’t forward-thinking enough to be the early mover because the other might use it against them.

    The government is and always has been short term focused. They learn little from the distant past and only from the recent past. That said, they know this is the two smaller value players merging, and the one public criticism has been the risk of higher prices. So I am confident that the government said “what assurances do we have that you won’t abandon your pricing strategy and just raise prices?” Of course the caveats are pretty large, and Most if Sprints current promo plans have an end date we’ll before 3 years and jump to T-Mobile One levels well before that.

    I am way more concerned about the MVNO (wholesale) pricing. Even if covered under this promise, keeping the wholesale prices static without continuing to increase data is no promise at all. The MVNO market is starting to grow from an excess capacity/pure profit for the carrier to something more like the rest of the world enjoys. With full price devices and no contracts, they are the new value play.

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    Quote Originally Posted by high technology View Post
    I am way more concerned about the MVNO (wholesale) pricing. Even if covered under this promise, keeping the wholesale prices static without continuing to increase data is no promise at all. The MVNO market is starting to grow from an excess capacity/pure profit for the carrier to something more like the rest of the world enjoys. With full price devices and no contracts, they are the new value play.
    The MVNO strategy, for all the carriers, seems to be to sell as much excess capacity as possible regardless of how it may affect the prices the carriers can charge for their own postpaid and prepaid services. They try to decontent the services when possible, but don't seem to be making much of an effort.

    The Verizon MVNOs don't offer Wi-Fi calling, but the reality is that with Google Voice it's a non-issue. I ported my mobile number to Google Voice and the ability to view SMS and MMS on the computer, have voice-mail transcription, and use the phone anywhere in the world with my regular number by just buying a data-SIM card, is great.

    The Verizon MVNOs also don't offer hotspots anymore, though tethering is not prohibited on non-unlimited plans.

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    Quote Originally Posted by jet1000 View Post
    If they overtake Verizon, then Verizon can become the value carrier and lower their prices.
    Not likely; with 3 major players all in relatively strong positions there is no incentive to reduce profits. In Canada with 3 strong players, customers are held captive by slightly cheaper grandfathered/retention plans - because moving carriers would mean accepting increased 'in market' rates, or accepting an order-of-magnitude weaker network from the small, relatively young 'national' upstart.

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    Quote Originally Posted by smsgator View Post
    Probably Verizon and AT&T just don't care that much.
    Oh they care. It frightens them to their core what Legere can do with all of those extra assets and resources. But they can't complain. The combined company will still be somewhat smaller than either of them. If they complain, they'll be saying protect our duopoly and protect us from a stronger competitor.

    They have more than 2/3 of the market and they own the valuable corporate and government space where Sprint and T-Mobile have very little presence.
    All the more reason for them to be frightened about an improved competitor that will be in a better position to pounce onto those spaces.

    the price pressure from Sprint and T-Mobile, both of which are offering deals bordering on desperation,
    Desperation? This is just more of your anti T-Mobile propaganda. T-Mobile has great net additions quarter after quarter. They have their marketing and their message completely on point. Nothing desperate about their offerings.

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