backtop


Print 12 comment(s) - last by wallijonn.. on Mar 31 at 11:50 AM


Verizon Wireless CEO Daniel Mead.  (Source: trueiphone.com)
Says they have no interest in acquiring Sprint to stay number one

Verizon has broken its silence on AT&T's announced $39-billion acquisition of T-Mobile USA. Currently the nation's largest wireless provider (to be the nation's second if the deal goes through), Verizon is remaining aloof.

In a comment to Reuters, Verizon Wireless CEO Daniel Mead said he did not oppose the AT&T/T-Mobile deal, adding that he had no plans to acquire Sprint in order to stay number one.

"We're not interested in Sprint. We don't need them," Mead told Reuters

Mead also said that he predicted regulators would approve the blockbuster deal, as long as certain conditions are met. "Anything can go through if you make enough concessions," he said.

Meanwhile, Sprint had a bit more to say about the deal, perhaps because it has the most to lose. Although Sprint would remain third in terms of customer base, it would be a much more distant third without another mid-level player like T-Mobile below it to compete with.

T-Mobile has released a FAQ to quell customers concerns over the acquisition, maintaining that it would remain an independent company for at least the next year while the deal gets finalized. Presumably, rate plans and customer contracts will be grandfathered in even after the acquisition is completed.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

This is the best possible scenario for Sprint
By mcnabney on 3/22/2011 10:44:30 AM , Rating: 4
Sprint and T-Mobile were the only two national discount carriers. The vast majority of their customers were there to take advantage of lower service costs even though Verizon offered a 'large and reliable' network and AT&T had the iPhone. If the deal goes through and T-mobile customers start losing their great deal (like discounted contractless service) they are going to rush for the doors and Sprint is in the best position to capitalize on it. Prepaid and regional carriers will also benefit. The way I see it, this deal costs Sprint nothing and guarantees them incoming customers. Good for them.




RE: This is the best possible scenario for Sprint
By omnicronx on 3/22/2011 10:49:25 AM , Rating: 3
I was thinking the same thing. For the most part it seems that T-Mobile had a completely different customer base than AT&T.

As a result I don't think its fair to merely add up AT&T and T-Mobiles current userbase and assume that it is going to remain as such when the dust settles.

Would not surprise me at all if a large amount of users jumped ship to Sprint for the very reasons you mentioned.

Heck, I would not be surprised if Verizon attempts to capitalize on this aswell.


By Denigrate on 3/22/2011 11:59:22 AM , Rating: 2
It's very unlikely that I'll be sticking around with T-Mobile after my current deal expires. Was an ATT customer before I went to T-Mobile, and don't want that experience again.


RE: This is the best possible scenario for Sprint
By Motoman on 3/22/2011 10:51:27 AM , Rating: 2
I can't imagine any way that Sprint and T-Mobile can be considered "discount" carriers.

I switched to Straight Talk about a year ago, after looking through the actual discount carriers...which is not a list that contains Sprint or T-Mobile. On Straight Talk, I pay $30 for 1,000 minutes and 1,000 texts...which are numbers I am never going to get close to. My wife recently switched from Verizon as well - on Verizon, she was paying $120 a month, or more...on Straight Talk, she pays $45 a month and has unlimited calls, unlimited text, and unlimited data - and a phone that can wirelessly tether. And does GPS turn-by-turn directions.

Straight Talk runs on the Verizon network - and the catch is that it only runs on the Verizon network. Doesn't roam. And no access outside of the US. On the other hand, if you're not in a Verizon covered area, you're really in the boondocks...and with Straight Talk, there's no contract at all - it's all month to month.

There are other true discount carriers - Virgin, Tracfone (which owns Straight Talk), Boost, etc. If you want to compare apples to apples, look at them.

...but go and look at the plans available at Sprint and T-Mobile and then tell me how they are "discount" providers. Nothing they have even approaches the Straight Talk plans. Sprint and T-Mobile are definitely "full cost" carriers.


RE: This is the best possible scenario for Sprint
By Ionizer86 on 3/22/2011 11:03:09 AM , Rating: 2
Sounds like Page Plus's $30 plan is a super set of Straight talk's: 1200 mins instead of 1000, 2000 texts instead of 1000, and 100MB of data instead of 20MB. Runs on Verizon's network, and you get to use any non-blackberry Verizon phone.

Anyway, I don't like this AT&T / T-Mo deal. If this goes through, only 3 companies will own infrastructure nationwide. What if they clamp down on the amount of infrastructure they rent out to the virtual providers / prepaids, and the cheap Page Plus, Virgin Mobile, etc plans no longer exist? Bad times!


By Motoman on 3/22/2011 11:21:05 AM , Rating: 3
Mmmm...a quick look at Page Plus reviews on the web and they seem pretty scammy. But hey, knock yourself out.

At any rate, I was really just taking issue with someone asserting that Sprint and/or T-Mobile were "discount" carriers - they most certainly are not.


By AlphaVirus on 3/22/2011 11:55:20 AM , Rating: 2
You make a very valid point.
When people ask "which service should I get" price is their main concern. No matter how you slice it Verizon is always the most expensive, however you do get a fast and consistent service.
Sprint and TMobile always offered a reasonable price for good options, while at times you sacrificed speed (pre-"4G"). I'm currently a TMobile and ATT user and if this deal goes through I will cut the TMobile deal and move to Sprint because the price.


RE: This is the best possible scenario for Sprint
By mcnabney on 3/22/2011 12:42:09 PM , Rating: 2
I really don't think that the T-mobile acquisition will do much to help AT&T, it won't effect Verizon, and should assist Sprint since it will leave them as the only discount national carrier.

Verizon kept almost all of the Alltel customers because the customer-base was very similar, just regionally concentrated. T-mobile customer are mostly urban/suburban, but much more value conscious. I once was a T-Mobile customer (actually, Arial then Voicestream) based upon price. I needed the coverage and reliability so I switched to Verizon. I can afford it. If money was tight I would switch back. Obviously, in a year there won't be any good deals. So Sprint will be the default national carrier before going to the prepaid options. I still don't know why people stick with AT&T. All of my friends with AT&T had it for the iPhone. Since AT&T and Verizon cost the same they will be switching to Verizon on the next upgrade cycle. Nobody jumped to Verizon for an 8 month old iPhone4, but they will for an iPhone5.

There is actually a good chance that even Sprint will raise prices after T-mobile is gone. I guess the big loser in this merger will be the American consumer.


By AlphaVirus on 3/22/2011 2:10:05 PM , Rating: 2
quote:
I guess the big loser in this merger will be the American consumer.

You couldn't be more spot on with this last statement. I'd like to say yeah I'm going to vote with my wallet...but how many other options are there?! I damn sure won't switch to Cricket...I need service when I travel without having to call customer service every time.


By mcnabney on 3/22/2011 4:53:19 PM , Rating: 2
If you are traveling than you should already be on Verizon. I tried them all. They cost more than Sprint and T-Mobile, but you do get more. Still don't know what AT&T has going for it now that they lost the iPhone.


By wallijonn on 3/31/2011 11:50:03 AM , Rating: 2
quote:
There is actually a good chance that even Sprint will raise prices after T-mobile is gone.


AT&T will probably be raising their prices too - about $39B worth. Plus $5M for the CEO bonus. I doubt that they can lay off $39B worth of people, like most corporations are wont to do.


By chick0n on 3/23/2011 9:31:29 AM , Rating: 2
wrong,

I got T-mobile simply because AT&T is garbage.

what's the point of a cell phone service that does not work or drop calls every 5 minutes ?


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki