Monday, April 30, 2018

10 Reasons to Oppose a T-Mobile/Sprint Merger

There's is much you can read about the new Sprint and T-Mobile tie-up.  Here at the Noise, we'll just list what we expect will happen:

1. There Will Be No Low-Cost Alternative:
Today Sprint offers some astounding deals, and T-Mobile has done so in the past.  There will be much less need to compete at such low price points.

2. There Will Be No More Unlimited Plans:
In Canada, where there are only 3 national networks, unlimited data plans are not offered.  They tried to eliminate them here.  With 3 networks, they should succeed in shutting those plans down.

3. Many Customers Will Need a New Phone:
The surviving network most likely will be GSM.  If so, your Sprint phone (as well as Virgin Mobile, Boost Mobile and few dozen others) will be a paper weight.

4. Alternative Prepaid Carriers Could Feel the Pain:
With so few networks to choose from, MVNO's (the cellular re-sellers) like TracFone, Straight Talk, and ultra-low cost carriers like FreedomPop and Twigby will probably raise prices.

5. Some Carriers May Disappear:
In addition to the alternative carriers mentioned above, there may be no need to offer alternatives by the Top 3 carriers themselves.  Will they really need MetroPCS, Cricket, or Virgin Mobile to keep customers?

6. Stores May Close:
Who needs a store when everything can be purchased online?  What about the separate wireless stores in Walmart, Costco and Best Buy?  Do you remember Barnes and Noble?

7. The Combination Could Take Years to Complete:
A certain level of uncertainty could be a real pain in the neck.  Why buy a phone now knowing you'll need a new one?  What if the deal falls through?  How long will it take to change the cell site near you?

8. Coverage Changes:
In the past, duplicate cell sites were switched off.  Those sites could be the ones you used and you may be forced to change networks, and maybe phones, to get coverage back.

9. The Big Get Bigger:
Many of us enjoy doing business with a smaller, and often scrappier, company.  There won't be any.

10. The Small Go Away:  
There are over 60 small carriers in the US and they will face fewer but larger competitors.  There's also a good chance their roaming charges will increase and kill what small profit they have today.

It's just a list...

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