T-Mobile is Making Wall Street Nervous (Good News for Consumers)

Discussion in 'Android News' started by dgstorm, Jan 14, 2014.

  1. dgstorm

    dgstorm Editor in Chief
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    In case you haven't really taken notice, T-Mobile's "Uncarrier" initiative over the past year and half is kind-of a big deal. Not only has it been a boon to T-Mobile's bottom line by drawing in millions of new customers for the carrier, it has even been instrumental in AT&T switching strategies and offering more competitive pricing. In fact, it's because of this that T-Mobile is now making investors on Wall Street very nervous. Ultimately, that could prove to be good news for U.S. consumers.

    Several financial analysts are worried that T-Mo's strategy could spark a massive price war between all of the carriers in the United States. They reason that if AT&T was willing to stand up and pay attention enough to offer competitive new price options in order to compete with T-Mobile, then it won't be too long before Verizon does the same. Even the "on the ropes" carrier, Sprint is getting in on the act and offering more competitive pricing. This could eventually erode profit margins with all the carriers. Here's a quote with more of the details,

    Additionally, other analysts are echoing the same thing. Here's another quote,

    Even if a full-fledged price war doesn't erupt, in the long run, carriers like AT&T and Verizon will find their churn increasing and will still have to spend more on advertising to combat this. This will have a bottom line effect on their profit margins, and will force them to get more competitive with pricing. For too long, "the big two" have grown fat and lazy dictating the price markets here in the U.S. at their whim. It looks like T-Mobile is having an effect which could ripple throughout the industry over time.

    T-Mobile may not be using the "no more mr. nice girl" campaign anymore, but it still fits. In the end, Wall Street might be sweating, but consumers can start smiling.

    Source: Reuters
     
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  2. devdeuce

    devdeuce Member

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    Kudos T-Mobile! Verizon is getting out of hand and needs to be knocked down a few notches
     
  3. Dusty

    Dusty Gold Member

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    The problem with T-Mo...

    The more they spend on ads the less they spend on towers. People will switch until they discover the dead zones and uncovered regions and then they'll just go to another provider.
     
  4. devdeuce

    devdeuce Member

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    That's just it, I'm pretty much forced to be on Verizon due to coverage in my area. A price war is exactly what i need.
     
  5. mountainbikermark

    mountainbikermark Super Moderator
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    The "new normal" economy and workforce has turned just about every American into a "cost conscious" consumer. Gone are the days when less value for the money are offset in the checkbook by the coming pay raise and confidence in ones job stability.
    Yes it might make a slight ding in my ira overall but any price war will be a welcome thing in my household.

    Support Our Troops!!!
    <><
    s pen aholic in Beast Mode (Notetoo)
     
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  6. Asgard

    Asgard Member

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    I'm so sick and tired of VZW $#!* that I can't wait until march for my contract to end, I think I'm getting a Nexus 5 and look into the uncarrier thing so that they pay my ETF.
    Supposedly, their coverage is good around the DFW area, so I might be fine with it. Don't know if any of you can confirm this.
     
  7. xeene

    xeene Gold Member

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    Good news for all of us, unless we have vested interest in att and vzw stock. I doubt vzw will ever come down to their past pricing, but any little bit helps.
     
  8. Dark Lazer

    Dark Lazer Active Member

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    I actually switched from Verizon to T-Mobile in November and I couldn't be happier. I pay about the same price but I get more for my money. And best of all my speeds are actually BETTER than I had when I was with Verizon, and I don't even live in a huge area that you would expect it from. Sure they definitely don't have the coverage that covers as much as Verizon, but I feel people are exaggerating and just echo the same thing because it's what people assume.
     
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  9. akhenax

    akhenax Silver Member

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    This is the very reason why I wanted my next phone to be carrier agnostic. I would have loved to have moonlighted on Tmobile for a bit, to try out there service in parallel to me still being on Verizon. I might have to wait till next go round before I switch. I'm not on a contract anymore and Verizon can choose to boot me to the unlimited data curb whenever they feel like it.
     
  10. johnomaz

    johnomaz Silver Member

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    US carriers charge so much more than other countries do for cell service. I hope a big price war starts. I switched to TMobile in October and have been happy. I don't get LTE everywhere like I did with AT&T, but the HSPA service for me is quite fast. I'm not carrier loyal though. I will happily switch carriers if a better deal arises.
     
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  11. PereDroid

    PereDroid DF News Team Reporter

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    I'm tired of hearing about how great VZW's network is. I live in the nations 45th largest city in the US...formerly the 28th... yes we lost some population to the suburbs big time... almost 2 million people in the county... 23rd largest MSA... and I get one bar at my house. Many areas I got no coverage. This is the nations largest network? And I live IN Cleveland... not some smarmy suburb.
    The day my job stops paying my bill I am switching to Tmobile...
     
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  12. Caesars

    Caesars Senior Member

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    T-Mobile is Def changing the American game, well thought out advertisement campaigns and lte/hspa in populated areas, I can't complain. For the same price or less, I'm getting unlimited lte. With the lower price "high end" phones such as the nexus 5 and MotoX, the future is bright for unsubsidized phone plans and finally that start of fair pricing on American networks.

    Sent from my Nexus 5 using Tapatalk
     
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