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Thread: Are you worried about the future of Boost Mobile?

  1. #31
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    I'm a little concerned for the employees in stores now that this is happening. I know that in some areas, they gutted competition to make it seem like they had "serious partners" in areas by letting bigger companies put smaller ones out of business or taking them over. One company that was doing that told me that they were in a rush to get as many stores in as many states a possible so that they would have some leverage if the merger happened. But now that they will be dealing with Dish, and Dish having to deal with being a T-Mobile MVNO for the time being, I'm not sure if T-Mobile will enforce territory boundaries for Metro stores, which would eliminate a number of current doors unless they relocate. I'd also be interested to see how Dish deals with compensation to stores compared to how Metro will deal with them.

  2. #32
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    Quote Originally Posted by J Wireless View Post
    I'm a little concerned for the employees in stores now that this is happening. I know that in some areas, they gutted competition to make it seem like they had "serious partners" in areas by letting bigger companies put smaller ones out of business or taking them over. One company that was doing that told me that they were in a rush to get as many stores in as many states a possible so that they would have some leverage if the merger happened. But now that they will be dealing with Dish, and Dish having to deal with being a T-Mobile MVNO for the time being, I'm not sure if T-Mobile will enforce territory boundaries for Metro stores, which would eliminate a number of current doors unless they relocate. I'd also be interested to see how Dish deals with compensation to stores compared to how Metro will deal with them.
    If tmobile and sprint merge seems like they won't need as many stores anymore because they can merge them.

    I have no idea what dish will do with boost stores but it might depend on their strategy of selling online vs company stores vs department stores like target.

  3. #33
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    I can't see a situation where T-Mobile would allow Dish to be an MVNO that is super close to their prepaid and postpaid stores that they will no doubt give priority to. They already sale their service without stores as it is, so they could go the Fi route of being online only to reduce overhead. The other issue for them to start will be will they work with a number of phone manufactures to get a large variety of phones to sale, or focus on allowing customers to bring their own phones and just sale service to start.

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    Quote Originally Posted by J Wireless View Post
    I can't see a situation where T-Mobile would allow Dish to be an MVNO that is super close to their prepaid and postpaid stores that they will no doubt give priority to. They already sale their service without stores as it is, so they could go the Fi route of being online only to reduce overhead. The other issue for them to start will be will they work with a number of phone manufactures to get a large variety of phones to sale, or focus on allowing customers to bring their own phones and just sale service to start.
    I'm not sure TMobile has much of a choice in that matter honestly. The mvno agreement was made by the DOJ, with TMobile and Dish to complete the merger. What the deal exactly is, nobody is sure, but, it supposedly does include a good faith spectrum leasing agreement from dish for TMobile to lease dish's 600 spectrum, and the deal included dish to receive boost, it's customer base, and all retail locations, as well as band 26 and Sprint towers.

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    Quote Originally Posted by hofonewb9 View Post
    I'm not sure TMobile has much of a choice in that matter honestly. The mvno agreement was made by the DOJ, with TMobile and Dish to complete the merger. What the deal exactly is, nobody is sure, but, it supposedly does include a good faith spectrum leasing agreement from dish for TMobile to lease dish's 600 spectrum, and the deal included dish to receive boost, it's customer base, and all retail locations, as well as band 26 and Sprint towers.
    Dish could easily decide that many Boost locations are in areas they would rather not have stores at. They can also change compensation that would cause doors to close down. About 3 years ago, companies were trying to get to the 50+ store mark to get in a position to have some kind of leverage. But Dish may decide not to go that route. The areas that have both T-Mobile and Sprint locations near by will likely close one of those locations, and they are likely better locations than where some Boost stores are currently located. The image of Boost will likely be redone, so paying to do this in a retailer like Walmart, Target and/or Best Buy could be better and could lead to those stores helping them market Boost better than redoing all of the current locations would.

  6. #36
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    Quote Originally Posted by J Wireless View Post
    I can't see a situation where T-Mobile would allow Dish to be an MVNO that is super close to their prepaid and postpaid stores that they will no doubt give priority to. They already sale their service without stores as it is, so they could go the Fi route of being online only to reduce overhead.
    Yes, Dish does not have any branded stores. They only use independent satellite service dealers, so have no direct retail experience. Not sure if the existing Boost stores are franchise dealers or company owned. There could be something in the merger agreement that requires Dish to support these existing stores because of existing contracts, at least for a certain time period.

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    Quote Originally Posted by loboheeler View Post
    Yes, Dish does not have any branded stores. They only use independent satellite service dealers, so have no direct retail experience. Not sure if the existing Boost stores are franchise dealers or company owned. There could be something in the merger agreement that requires Dish to support these existing stores because of existing contracts, at least for a certain time period.
    When I ran stores a few years ago, dealers had to sign new agreements each year. It would be at that time that Boost would announce changes to compensation to dealers, and dealers would have to decide what changes they wanted to make to their employee's paychecks. They started doing the annual agreements after there was almost a class action lawsuit by dealers who went out of business or almost went out of business due to the top phones not going to actual Boost stores, which sent customers away to Radio Shacks and Best Buys. Boost stores are usually independently owned, with them hoping for owners who will open up multiple stores. Corporate owned stores have the highest overhead, so if any did exist they would probably be the first to go.

    My guess is that Dish will set their own compensation rules that dealers will have to sign in order to stay with them. If they have to give up doors that are within a short radius of existing Metro stores, that would naturally close down a lot of stores. I honestly don't know if they want all of the locations and to try and push satellite service into these stores as well. Dish has said they want to lower prices, so they will try to be competitive to whatever the market is doing. With each company having boundary agreements, it will be interesting to see if dealers try to switch to different carriers and if they'd be allowed to do so.

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    Quote Originally Posted by J Wireless View Post
    If they have to give up doors that are within a short radius of existing Metro stores, that would naturally close down a lot of stores. I honestly don't know if they want all of the locations and to try and push satellite service into these stores as well. Dish has said they want to lower prices, so they will try to be competitive to whatever the market is doing. With each company having boundary agreements, it will be interesting to see if dealers try to switch to different carriers and if they'd be allowed to do so.
    Boost would be competing with Metro, as it is to be run on the T-Mobile network. Sprint has stated about half of their phones are not T-Mo compatible, and that is likely even more with existing Boost phones. Coverage will change too. In my area Sprint has much better coverage than T-Mo just outside of town and the highways. That may change as the spectrum get's integrated.

    I doubt many existing Boost dealers would want Dish satellite service integrated into their stores. That is now handled by companies that are installers. Very different business.

    Yes, what could the dealers bail out to? Possibly convert to Tracfone Wireless stores. Those are named "Total Wireless", and carry all the Tracfone Wireless brands. Hard to say if T-Mo would consider them to be a threat. Tracfone Wireless is a pretty big company that uses all carriers.

  9. #39
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    I honestly don't know who the owner could flip over to. Unless something changed, a company that sales a major prepaid brand is locked into only selling that company's products in the state in which they do business in. If a Boost dealer decided they wanted to switch to Cricket, and their existing locations are deemed too close to other Cricket stores, they would likely have to find new locations to sell service. It could cost a lot more than what it's worth, which would give Dish most, if not all of the leverage in negotiations. Owners could try to sell smaller prepaid brands and try to do phone repair on the side, but training people to do this may cost a lot also. Sprint allowed Boost to put themselves in a position where in some areas, all of the stores are owned by 1 or 2 companies. I think once Dish is aware of this, they will be prepared to offer service in big box stores to make up for losing doors if it comes to that.

  10. #40
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    Quote Originally Posted by J Wireless View Post
    Sprint allowed Boost to put themselves in a position where in some areas, all of the stores are owned by 1 or 2 companies. I think once Dish is aware of this, they will be prepared to offer service in big box stores to make up for losing doors if it comes to that.
    Big box stores usually don't support MVNO phone services, other than just selling the phones.

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