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Thread: If T-Mobile and Sprint Merge will the U.S wireless market become the next Canada?

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    If T-Mobile and Sprint Merge will the U.S wireless market become the next Canada?

    Curious on everyone’s thoughts on this. Some people genuinely think that if Sprint merges into T-Mobile, prices will increase. With less competition and stuff... what are everyone’s thoughts?

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    I think we will have 3 carriers with similar prices. We kind of already have that now. I don't see TMobile lowering prices after the merger.

    If anything they will go up. They won't have the same type of incentive that they had when uncarrier started. In fact that has already dwindled now.

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    Quote Originally Posted by themanhimself View Post
    They won't have the same type of incentive that they had when uncarrier started. In fact that has already dwindled now.
    Distractions have a way of doing that. If approved, they will have further distractions trying to integrate systems.
    iPhone X on ATT Prepaid. Backup iPhone 7+ on inexpensive Verizon MVNO plan. Hopefully covers me in the continental US for phone usage. Cheaper than a single unlimited plan on ATT or Verizon or T-Mobile.

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    Every company's shareholders seek to maximize their profit. T-Mobile is not a charity. They're no different. They will move to increase prices as soon as cost competition from Sprint is removed. They'll put lipstick on so that they can pretend that it's something pro-customer but the bottom line is that prices will increase.
    Donald Newcomb

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    We have more mvno than canada. Answer= NO

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    I am uncomfortable with the prospect of T-Mobile merging with Sprint.

    Technology tends to bring down the cost of a certain level of service. For example, T-mobile was a leader in the tech for WiFi calling and also a leader in low prices. (At a certain time, a couple years ago.) WiFi calling improves service, but it also reduces traffic on the cell towers. Engineers will continue to do things efficiently. But for customers to see lower prices, we rely on competition.

    Three big networks will be too few. They will be a step towards the bad old days of the Bell monopoly.

    https://youtu.be/iFRc6nt4hbQ

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    Quote Originally Posted by JimWorthey View Post
    But for customers to see lower prices, we rely on competition.

    Three big networks will be too few. They will be a step towards the bad old days of the Bell monopoly.
    This is a unique industry where quantity of competitors doesn't necessarily result in competition. To construct a nationwide network that has broad coverage and also has the latest technology with the highest speeds, that requires spectrum. And spectrum is a limited commodity. Thus that limits the number of quality nationwide networks that can even exist.

    T-Mobile/Sprint are going to pitch the idea that three competitors that are closer in size will result in more competition not less. As of now, neither T-Mobile nor Sprint alone are a threat to AT&T and Verizon. The two large companies have way more corporate customers and way more consumer customers. And without the merger it will be that way for many years to come. There would simply be no way for either small company to bridge the gap.

    So AT&T and Verizon would continue to expand more with their greater revenue without ever being afraid that anyone can catch them.

    Technology tends to bring down the cost of a certain level of service. For example, T-mobile was a leader in the tech for WiFi calling and also a leader in low prices. (At a certain time, a couple years ago.) WiFi calling improves service, but it also reduces traffic on the cell towers. Engineers will continue to do things efficiently.
    That's true. The merger will give T-Mobile resources necessary to continue their innovation with technology and network deployment. Not only will they be able to use the spectrum of the combined company in the most efficient manner, but their 5G rollout will give them the opportunity to compete in home broadband delivery as well as video content. They'll have a much greater opportunity to do that with the merger.

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    Overall I support the merger. I think TMobile can get to where they want to be a lot faster from the merger. As for sprint they seem to be struggling so I'd rather have 3 strong carriers.

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    No network merger in the last 30 years has resulted in a consumer price increase. With 5G NR coming and all the extra spectrum there will be excess bandwidth that will lower consumer prices. Canada is a very bad example since it is the physical size of the USA for building out towers but with only 1/10th of the population to pay for maintaining and upgrading their networks. T-Mobile alone has almost twice as many customers than everyone that lives in Canada. Without the merger neither T-Mobile or Sprint will have enough spectrum to build out a "Deep Spectrum Nationwide 5G NR network" to compete with AT&T and Verizon.

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    On page 100 of their FCC filings they say this

    "New T-Mobile’s business incentives will be no different than those of any for-profit corporation to maximize profitability and shareholder value."


    Interpret that statement any way you want to.

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    Quote Originally Posted by shilohcane View Post
    No network merger in the last 30 years has resulted in a consumer price increase. With 5G NR coming and all the extra spectrum there will be excess bandwidth that will lower consumer prices. Canada is a very bad example since it is the physical size of the USA for building out towers but with only 1/10th of the population to pay for maintaining and upgrading their networks. T-Mobile alone has almost twice as many customers than everyone that lives in Canada. Without the merger neither T-Mobile or Sprint will have enough spectrum to build out a "Deep Spectrum Nationwide 5G NR network" to compete with AT&T and Verizon.
    This is my thinking as well. I think that 5G will be a huge disruptor to the fixed line cable/broadband industry and allow truly driver-less vehicles to become a reality. But to do this is going to require a huge capital investment. I do not believe that T-mobile and Sprint will be able to do this an individual companies. But together I believe they have the critical mass to allow for three viable 5G companies in the U.S.

    In my opinion, it isn't the consumers that need to be worried. It is the fixed line cable companies.

    I believe that this is why Google stopped its Google fiber initiative. I think Google realized that fixed lines to residences was going to become obsolete as soon as the infrastructure was in place for 5G wireless broadband.

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    Quote Originally Posted by Breaking Good View Post
    This is my thinking as well. I think that 5G will be a huge disruptor to the fixed line cable/broadband industry and allow truly driver-less vehicles to become a reality. But to do this is going to require a huge capital investment. I do not believe that T-mobile and Sprint will be able to do this an individual companies. But together I believe they have the critical mass to allow for three viable 5G companies in the U.S.

    In my opinion, it isn't the consumers that need to be worried. It is the fixed line cable companies.

    I believe that this is why Google stopped its Google fiber initiative. I think Google realized that fixed lines to residences was going to become obsolete as soon as the infrastructure was in place for 5G wireless broadband.
    This is correct. They are promising (at the very least) $40 billion in additional CAPEX to support a massive network upgrade while combining resources.

    Neville Ray has been quoted as saying that at least 90% of the combined entities cell sites will be equipped with 2.5 GHz spectrum.
    “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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    I think prices will go up, if they end up merging. Airlines in the past used the same lines before their merger, on how they'll be more competitive, and ticket prices would be cheaper. Instead prices have just gone up, nothing but smoke, and mirrors. The more competition you have the more competitive pricing will be.

    Sent from my SM-N950U1 using Tapatalk

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    Quote Originally Posted by @TheRealDanny View Post
    This is correct. They are promising (at the very least) $40 billion in additional CAPEX
    Not entirely true. This is exactly what they said in their June 18th filings.

    "New T-Mobile will invest nearly $40 billion to combine the complementary spectrum, sites, and assets of T-Mobile and Sprint to deliver a robust, nationwide world-class 5G network"

    Now later on they breakdown their planned CAPEX over the next few years. Unfortunately those numbers and charts have been blacked out so they can't be viewed by the public. Bummer.

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    Quote Originally Posted by skylar_G View Post
    On page 100 of their FCC filings they say this

    "New T-Mobile’s business incentives will be no different than those of any for-profit corporation to maximize profitability and shareholder value."

    Interpret that statement any way you want to.
    Underrated post. There will be no cheaper prices. There will be no $50 unlimited as they promise.

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