Price war in U.S. mobile market raises fear of profit hemorrhage

Comments (10)
GradyPhilpott wrote:

“Legere also estimated that consumers could save a total of $20 billion per year if they all switched to T-Mobile, a calculation based on the other carriers’ monthly user revenues.”

If everybody switched to T-Mobile, their network would crash.

The Wall Street guys may be shaking in their boots over more competition among cell phone carriers, but from my point of view, it’s very promising.

When I got my first cell phone (and I was late coming to the party), carriers would do anything to get you to sign up, offering all kinds of promotions and discounts.

Then they all got fat and greedy and started cramming services down customer’s throats, like making customers by data plans they didn’t really need to get the phone they really wanted and some of those phones were cheap basic phones that could access the internet.

However, recently Verizon offered me a plan that actually exceeds my needs and saves me about $20 a month. I was astounded and very pleased.

By the way, I’ve been with Verizon for no fewer than a dozen years and the one thing that keeps me loyal isn’t the network, although that’s very important. It’s the customer service.

If only my sleazy cable company would take a lesson from Verizon.

Jan 11, 2014 8:27am EST  --  Report as abuse
rvm3 wrote:

In any civilized country, Verizon and AT&T would be investigated for criminal price-fixing. 50% profit margins?

Jan 11, 2014 9:16am EST  --  Report as abuse
rvm3 wrote:

How would AT&T and Verizon get by without 50% a profit margin?

Jan 11, 2014 9:17am EST  --  Report as abuse
RDaneel wrote:

rvm3 wrote:

In any civilized country, Verizon and AT&T would be investigated for criminal price-fixing. 50% profit margins?

How would AT&T and Verizon get by without 50% a profit margin?

Government price control, yep, that’s the ticket. Regulate profit margins. I wonder how you would react of you owned a business and the government told you how much you could charge for your product or service? Obviously you have no clue about operating a business, the free market.

Jan 11, 2014 10:15am EST  --  Report as abuse
Tiu wrote:

It’ll just mean more zombies walking around following their telephone.

Jan 11, 2014 12:46pm EST  --  Report as abuse
OnAnIsland wrote:

I guess the real question is how can AT&T get customers back after chasing them away with lack of service. Years of dropped calls were bad enough but not even putting calls through is a breach of contract. Poor personal service at stores and finally no answers from corporate. You want to increase market share? LMAO.

Jan 11, 2014 12:51pm EST  --  Report as abuse
ReverendJim wrote:

A small point and counter point for both sides: The logic of the market would dictate that AT&T and Verizon should concentrate their counter pushes exclusively in large metropolitan areas because the bulk of all rural and small market areas is covered exclusively by them. T-Mobil and other companies lower on the market list can’t offer their deals anywhere they can’t provide service. T-Mobil and others should consider spreading their coverage areas to put real pressure on AT&T and Verizon, but it may simply not be profitable to invest in coverage areas that have a smaller customer base. In other words, unless these lesser companies want to invest in the wide coverage areas already secured by AT&T and Verizon, The big 2 can only fall so far and can never really be passed, for very long, because they already own ALL the smaller markets.

Jan 11, 2014 2:34pm EST  --  Report as abuse
RD137 wrote:

It’s really hard to beat T-Mobile’s $50 per month plan with unlimited talk and text, 500 MB data, and no annual contract. As Jim pointed out, the biggest downfall is lack of coverage in rural areas and no 4G. I use Wi-Fi most of the time anyway, and I’ve never had a problem with dropped calls, and there is no extra charge for tethering. Haven’t been able to find a good reason to switch back to anyone else.

Jan 13, 2014 3:11am EST  --  Report as abuse
RD137 wrote:

It’s really hard to beat T-Mobile’s $50 per month plan with unlimited talk and text, 500 MB data, and no annual contract. As Jim pointed out, the biggest downfall is lack of coverage in rural areas and no 4G. I use Wi-Fi most of the time anyway, and I’ve never had a problem with dropped calls, and there is no extra charge for tethering. Haven’t been able to find a good reason to switch back to anyone else.

Jan 13, 2014 3:12am EST  --  Report as abuse
PMDR wrote:

Awww too bad. They’re worried about losing some of their massive profits, but they’re up against customers who have been paying through the nose for wireless for the better part of the last three decades. “That’s just the way it is, so pay it” no longer works.

The big carriers have kept customers, grudgingly in many cases. But now many of those customers are being crushed by monthly bills and fees and inflation unmet by raises which aren’t happening for a lot of people.

The customers can’t be blamed for wanting a little payback and a better deal. Big Wireless is going to have to accept this is the new reality and put down the caviar and gold flatware and learn to eat cold oatmeal off plastic forks swiped from fast food, like the rest of us.

Jan 16, 2014 12:59pm EST  --  Report as abuse
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