T-Mobile’s self-defeating resurgence

ReutersEDITION:U.louis vuitton neverfull gm ReutersEDITION:U.[url=http://www.tustininformationcenter.com title=louis vuitton usa]louis vuitton usa[/url]S.S. SIGN INREGISTER HOME BUSINESS MARKETS WORLD POLITICS TECH OPINION BREAKINGVIEWS MONEY LIFE PICTURES VIDEO » Analysis & Opinion Home Opinion Felix Salmon Follow Felix Salmon View Felix Salmon RSS feed T-Mobile’s self-defeating resurgence By Felix Salmon DECEMBER 15, 2013 Email Print inShare TELECOMMUNICATIONS It’s a standard part of flying, these days: the minute you touch down, you pull out your phone and get back up to speed with the world — especially if you’ve been on a long flight without wifi. SIGN INREGISTER HOME BUSINESS MARKETS WORLD POLITICS TECH OPINION BREAKINGVIEWS MONEY LIFE PICTURES VIDEO » Analysis & Opinion Home Opinion Felix Salmon Follow Felix Salmon View Felix Salmon RSS feed T-Mobile’s self-defeating resurgence By Felix Salmon DECEMBER 15, 2013 Email Print inShare TELECOMMUNICATIONS It’s a standard part of flying, these days: the minute you touch down, you pull out your phone and get back up to speed with the world — especially if you’ve been on a long flight without wifi. And then there’s the standard exception: when you’re flying internationally, you don’t. And then there’s the standard exception: when you’re flying internationally, you don’t. Not unless you’re very rich, or very reckless, or someone else is paying your phone bill.louis vuitton usa Not unless you’re very rich, or very reckless, or someone else is paying your phone bill. Which is what made my arrival in Auckland this morning so special: I touched down after a long flight, pulled out my phone, cycled through Twitter and email and Foursquare, and didn’t stress at all about being charged $20. Which is what made my arrival in Auckland this morning so special: I touched down after a long flight, pulled out my phone, cycled through Twitter and email and Foursquare, and didn’t stress at all about being charged $20.48 per megabyte (or whatever) in a world where I have no idea how many megabytes are involved in any of those activities.48 per megabyte (or whatever) in a world where I have no idea how many megabytes are involved in any of those activities.[url=http://www.tustininformationcenter.com title=louis vuitton usa]louis vuitton usa[/url] But I just switched to T-Mobile, which has free international data. But I just switched to T-Mobile, which has free international data. I’ve been using it for about 12 hours now, in Auckland and Wellington, and it’s been fantastic.louis vuitton tote I’ve been using it for about 12 hours now, in Auckland and Wellington, and it’s been fantastic. I’d heard complaints about how slow it was, and I haven’t been trying to stream video, or anything like that, but basic things like maps and Google searches work fine. I’d heard complaints about how slow it was, and I haven’t been trying to stream video, or anything like that, but basic things like maps and Google searches work fine. I was already a fan of T-Mobile in any case: its LTE network is blazingly fast, its pricing is astonishingly simple and transparent, I’ve had very few dropped calls, and, the one time I did have a serious issue which required non-trivial customer service, their T-Force social customer support team came through with flying colors. I was already a fan of T-Mobile in any case: its LTE network is blazingly fast, its pricing is astonishingly simple and transparent, I’ve had very few dropped calls, and, the one time I did have a serious issue which required non-trivial customer service, their T-Force social customer support team came through with flying colors. It’s a big company, and there are still rough patches. It’s a big company, and there are still rough patches. But the “uncarrier” campaign is more than just a slogan, and makes it much easier to give T-Mobile the benefit of the doubt when things go wrong.louis vuitton neverfull gm But the “uncarrier” campaign is more than just a slogan, and makes it much easier to give T-Mobile the benefit of the doubt when things go wrong.[url=http://www.tustininformationcenter.com title=louis vuitton neverfull gm]louis vuitton neverfull gm[/url] All of which explains why I got a horrible sinking feeling in my stomach when I saw the news that Sprint is working on a bid for T-Mobile. All of which explains why I got a horrible sinking feeling in my stomach when I saw the news that Sprint is working on a bid for T-Mobile. The first thing I thought of, when I saw the headline, was the documentary “Who Killed the Electric Car?“, about the General Motors EV1 of the mid-1990s. The first thing I thought of, when I saw the headline, was the documentary “Who Killed the Electric Car?“, about the General Motors EV1 of the mid-1990s. Electric cars could have had their start back then; instead, we had to wait almost 20 years. Electric cars could have had their start back then; instead, we had to wait almost 20 years. When you’re developing a new product which is a serious threat to the biggest players in the market, it makes sense for those players to shut you down.louis vuitton tote When you’re developing a new product which is a serious threat to the biggest players in the market, it makes sense for those players to shut you down. The resurgence of T-Mobile was in no sense a predictable thing. The resurgence of T-Mobile was in no sense a predictable thing. Suffering from neglect and underinvestment, it agreed to be bought by AT&T in March 2011 for $39 billion. Suffering from neglect and underinvestment, it agreed to be bought by AT&T in March 2011 for $39 billion.[url=http://www.tustininformationcenter.com title=louis vuitton tote]louis vuitton tote[/url] But when that deal got scuppered by the Justice Department, T-Mobile took its $4 billion break-up fee and started shaking up the industry in a very welcome and unexpected manner. But when that deal got scuppered by the Justice Department, T-Mobile took its $4 billion break-up fee and started shaking up the industry in a very welcome and unexpected manner. If Sprint does buy T-Mobile, it certainly won’t be because the two companies are any kind of natural fit.louis vuitton usa If Sprint does buy T-Mobile, it certainly won’t be because the two companies are any kind of natural fit. As Sascha Segan explains, there are a lot of reasons not to do this deal, including the fact that the combination of the two is a “technological nightmare”: Sprint works with CDMA, some FD-LTE and increasingly TD-LTE. As Sascha Segan explains, there are a lot of reasons not to do this deal, including the fact that the combination of the two is a “technological nightmare”: Sprint works with CDMA, some FD-LTE and increasingly TD-LTE. T-Mobile works with GSM, HSPA+ and FD-LTE. T-Mobile works with GSM, HSPA+ and FD-LTE. Sprint is trying to aggregate the 800, 1900, and 2600 bands; T-Mobile has some 1900, but does a lot of its work on 1700. Sprint is trying to aggregate the 800, 1900, and 2600 bands; T-Mobile has some 1900, but does a lot of its work on 1700. This merger would result in a horrible technology alphabet soup; there’s very little compatible here, which means lots of time and energy will have to be wasted aligning these networks somehow.louis vuitton outlet online This merger would result in a horrible technology alphabet soup; there’s very little compatible here, which means lots of time and energy will have to be wasted aligning these networks somehow.[url=http://www.tustininformationcenter.com title=louis vuitton outlet online]louis vuitton outlet online[/url] That means a combined Sprint/T-Mobile will fall even farther behind AT&T and Verizon. That means a combined Sprint/T-Mobile will fall even farther behind AT&T and Verizon. That said, it’s easy to see why Softbank, Sprint’s new owner, would want to buy and neutralize T-Mobile. That said, it’s easy to see why Softbank, Sprint’s new owner, would want to buy and neutralize T-Mobile. Softbank does have deep pockets. Softbank does have deep pockets. What it doesn’t have is any desire to get involved in the telecommunications equivalent of a land war in Asia, attacking two huge entrenched incumbents while needing to expend extra energy fighting off a nimble smaller competitor at the same time.louis vuitton usa What it doesn’t have is any desire to get involved in the telecommunications equivalent of a land war in Asia, attacking two huge entrenched incumbents while needing to expend extra energy fighting off a nimble smaller competitor at the same time. In other words, this bid, if it ever materializes, is an anti-trust no-brainer — and the T-Mobile board could be forgiven for regretting that they ever hired John Legere in the first place. In other words, this bid, if it ever materializes, is an anti-trust no-brainer — and the T-Mobile board could be forgiven for regretting that they ever hired John Legere in the first place. Ironically, a weak and feeble T-Mobile might actually be worth substantially more than a seriously competitive T-Mobile, since the latter will have a much harder time passing anti-trust scrutiny. Ironically, a weak and feeble T-Mobile might actually be worth substantially more than a seriously competitive T-Mobile, since the latter will have a much harder time passing anti-trust scrutiny.[url=http://www.tustininformationcenter.com title=louis vuitton usa]louis vuitton usa[/url] Still, the die has been cast, at this point, and T-Mobile is on a roll. Still, the die has been cast, at this point, and T-Mobile is on a roll. There’s something very refreshing about actually paying full price for the phone you use, either up front or on an installment plan, instead of signing up for an overpriced two-year contract and kidding yourself that you’re getting the phone for “free” or cheap.louis vuitton usa There’s something very refreshing about actually paying full price for the phone you use, either up front or on an installment plan, instead of signing up for an overpriced two-year contract and kidding yourself that you’re getting the phone for “free” or cheap. Segan calls T-Mobile’s Equipment Installment Plan its “one true innovation”, because it manages to “bridge the perception gap between the subsidized world and the no-contract world” — if you’re on the plan, you still end up paying less per month than you would on Verizon or AT&T, even with the extra cost of (say) an iPhone 5s added on a separate line item. Segan calls T-Mobile’s Equipment Installment Plan its “one true innovation”, because it manages to “bridge the perception gap between the subsidized world and the no-contract world” — if you’re on the plan, you still end up paying less per month than you would on Verizon or AT&T, even with the extra cost of (say) an iPhone 5s added on a separate line item. True innovations are rare in industry, and the US consumer has undoubtedly benefitted from this one. True innovations are rare in industry, and the US consumer has undoubtedly benefitted from this one. It’s just a little bit depressing that T-Mobile might have ended up being worth more if it had simply withered slowly away instead. It’s just a little bit depressing that T-Mobile might have ended up being worth more if it had simply withered slowly away instead. « PREVIOUS POST More From Reuters \'Cannibal sandwiches\' sicken residents in Midwest Billionaire U.louis vuitton usa « PREVIOUS POST More From Reuters \'Cannibal sandwiches\' sicken residents in Midwest Billionaire U.[url=http://www.tustininformationcenter.com title=louis vuitton neverfull gm]louis vuitton neverfull gm[/url]S.S. candy heiress pleads guilty in fatal crash NBA goes up in smoke in Mexico U. candy heiress pleads guilty in fatal crash NBA goes up in smoke in Mexico U.S.S. military court finds soldier guilty in prostitution case Why cab drivers should love Uber From Around the Web See what’s next in contactless payments (Gemalto) 10 Insanely Overpaid Public Employees (The Fiscal Times) Why can’t you bring made in America to Asia? (Singapore Sessions) Microsoft Office Mobile for Android Now Available (TechnoBuffalo) Prediction: “The end of the smartphone – it’s obsolete!” (EDF Pulse) [?] COMMENTS 3 COMMENTS SO FAR | RSS COMMENTS RSS DEC 15, 2013 6:04 AM UTC I, too, would hate to see T-Mo get bought by any other carrier, but I don’t see this deal happening.louis vuitton usa military court finds soldier guilty in prostitution case Why cab drivers should love Uber From Around the Web See what’s next in contactless payments (Gemalto) 10 Insanely Overpaid Public Employees (The Fiscal Times) Why can’t you bring made in America to Asia? (Singapore Sessions) Microsoft Office Mobile for Android Now Available (TechnoBuffalo) Prediction: “The end of the smartphone – it’s obsolete!” (EDF Pulse) [?] COMMENTS 3 COMMENTS SO FAR | RSS COMMENTS RSS DEC 15, 2013 6:04 AM UTC I, too, would hate to see T-Mo get bought by any other carrier, but I don’t see this deal happening. Sprint doesn’t have the cash to pay for it, and they couldn’t service the debt they would take on to finance a cash deal, so they would have to trade their shares for T-Mobile shares. Sprint doesn’t have the cash to pay for it, and they couldn’t service the debt they would take on to finance a cash deal, so they would have to trade their shares for T-Mobile shares. Since DT still owns a big piece of T-Mo, they would be trading shares in a resurgent T-Mo for shares in a risky new venture fronted by a sideways Sprint. Since DT still owns a big piece of T-Mo, they would be trading shares in a resurgent T-Mo for shares in a risky new venture fronted by a sideways Sprint.[url=http://www.tustininformationcenter.com title=louis vuitton outlet online]louis vuitton outlet online[/url] With incompatible networks and phones. With incompatible networks and phones. I can’t believe DT would be that foolish.louis vuitton outlet online I can’t believe DT would be that foolish. It took years for their investment in T-Mo pay off, they would have to be complete fools to dilute their holdings by combining it with Sprint. It took years for their investment in T-Mo pay off, they would have to be complete fools to dilute their holdings by combining it with Sprint. Sprint needs to continue its effort to transition their network to all LTE, and to focus on competing with ATT and VZ, not T-Mo. Sprint needs to continue its effort to transition their network to all LTE, and to focus on competing with ATT and VZ, not T-Mo. They will lose any straight-up comparison with T-Mo, but if they adopt more of T-Mo’s tactics, they can take share away from ATT and VZ. They will lose any straight-up comparison with T-Mo, but if they adopt more of T-Mo’s tactics, they can take share away from ATT and VZ. They must unbundle their phones and service just as T-Mo has, and highlight the cost differences with the two larger incumbents.louis vuitton outlet online They must unbundle their phones and service just as T-Mo has, and highlight the cost differences with the two larger incumbents.[url=http://www.tustininformationcenter.com title=louis vuitton neverfull gm]louis vuitton neverfull gm[/url] Maybe at some point, they will have a better network than ATT and VZ, but today they don’t, and until then, they need a business model that is more customer-friendly, and not one that mimics their larger competitors. Maybe at some point, they will have a better network than ATT and VZ, but today they don’t, and until then, they need a business model that is more customer-friendly, and not one that mimics their larger competitors. Hopefully the leak was a trial balloon to see what the reaction would be, and they don’t proceed with it. Hopefully the leak was a trial balloon to see what the reaction would be, and they don’t proceed with it. Posted by KenG_CA | Report as abusive DEC 15, 2013 12:11 PM UTC After moving away from Sprint 10 years ago, no way am I getting sucked back into their hell hole. Posted by KenG_CA | Report as abusive DEC 15, 2013 12:11 PM UTC After moving away from Sprint 10 years ago, no way am I getting sucked back into their hell hole. I will switch if T-Mo gets bought out.louis vuitton neverfull gm I will switch if T-Mo gets bought out. Sprint is where good companies go to die. Sprint is where good companies go to die. Posted by GRRR | Report as abusive DEC 15, 2013 5:10 PM UTC I don’t know if this deal would be a net negative for consumers or not, but I think it’s a mistake to think that this is simply a case of Sprint trying to take out a disruptive competitor. Posted by GRRR | Report as abusive DEC 15, 2013 5:10 PM UTC I don’t know if this deal would be a net negative for consumers or not, but I think it’s a mistake to think that this is simply a case of Sprint trying to take out a disruptive competitor.[url=http://www.tustininformationcenter.com title=louis vuitton outlet online]louis vuitton outlet online[/url] Sprint (and T-Mobile) simply don’t have the scale to compete effectively with AT&T and Verizon at this point. Sprint (and T-Mobile) simply don’t have the scale to compete effectively with AT&T and Verizon at this point. They need more spectrum, they need a more competitive cost structure, and they need broader networks.louis vuitton outlet online They need more spectrum, they need a more competitive cost structure, and they need broader networks. (Sprint has a history of making lousy technology decisions – PCS, etc. (Sprint has a history of making lousy technology decisions – PCS, etc. – so I wouldn’t read too much into that alone. – so I wouldn’t read too much into that alone.) Posted by worm600 | Report as abusive POST YOUR COMMENT Submit Comment We welcome comments that advance the story through relevant opinion, anecdotes, links and data.) Posted by worm600 | Report as abusive POST YOUR COMMENT Submit Comment We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links.louis vuitton outlet online If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links.[url=http://www.tustininformationcenter.com title=louis vuitton neverfull gm]louis vuitton neverfull gm[/url] Views expressed in the comments do not represent those of Reuters. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs. For more information on our comment policy, see http://blogs.reuters.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Felix Salmon is the finance blogger at Reuters.louis vuitton totecom/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Felix Salmon is the finance blogger at Reuters. ANY OPINIONS EXPRESSED HERE ARE THE AUTHOR’S OWN. 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