Comments on: T-Mobile’s self-defeating resurgence http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: 78RL http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48879 Thu, 19 Dec 2013 15:01:34 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48879 I switched to T-Mobile for the new international coverage, and having just returned from So. America I can say it’s really a great advance. No more long “how to reach me” memos, easy access to email without camping out in hotel lobbies, and $0.20 calls back home. Speed was adequate for all but video. Let’s hope this is the start of an industry wide trend.

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By: TFF http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48860 Wed, 18 Dec 2013 14:16:11 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48860 “I guess we’ll see which is more addictive.”

Guess so… Yet I suspect there are many families who cannot afford the $600/month price tag you are describing. If they do blow that much on cell phones, where do they cut back?

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48855 Wed, 18 Dec 2013 05:17:37 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48855 y2k, Dish and Direct don’t provide internet access, so they’re at a disadvantage to cable. Also, they don’t compete like T-Mo does, they compete more like ATT competes with VZ.

I didn’t mean to imply that mesh networks will be here soon. give it 5-7 years. In the meantime, there’s T-Mobile.

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By: y2kurtus1 http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48853 Wed, 18 Dec 2013 03:11:18 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48853 “Call it $5/day and it becomes a substantial lifestyle choice.” kind of like smoking you mean. I guess we’ll see which is more addictive. Kids these days aren’t clamoring to drive like they use to… now it’s all about getting that data plan… I suppose teen pregnancy will drop right?

“Cable TV has been able to increase their rates because they don’t have a competitor like ATT and VZ have in T-Mo.” What about dish and Direct TV? Not as similar as AT&T/VZ/Sprint/USCellular/TMobile I suppose but still it’s competition. The bottom line is that people now value digital connectivity more than transportation. Sounds crazy to people of my generation but people are voting with their wallets.

“The wireless carriers will ultimately face real competition from free, crowd-sourced mesh networks on unlicensed spectrum.” don’t hold your breath!

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48851 Tue, 17 Dec 2013 16:40:32 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48851 y2k, I could see average smartphone bills of $150/mo, if ATT was allowed to buy T-Mo, but fortunately, that didn’t happen. You can actually get unlimited plans from T-Mo for $40/mo now, and I don’t expect that to increase. Unless Sprint buys T-Mo.

As for family plans, I actually have 3 smartphones and two voice-only phones on one plan with T-Mo, and it costs $165/mo. I could reduce it even more if I didn’t want unlimited 4G on one of the phones.

Cable TV has been able to increase their rates because they don’t have a competitor like ATT and VZ have in T-Mo. Also, some of their rate increases have come from the networks increasing their fees. And people are getting rid of cable, and relying more on the Internet.

The wireless carriers will ultimately face real competition from free, crowd-sourced mesh networks on unlicensed spectrum. They won’t have control over that, unless they preemptively lobby congress so the networks never get widely used. Given their lack of foresight, that’s not a given.

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By: TFF http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48849 Tue, 17 Dec 2013 12:05:31 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48849 So you can see a family of four spending $600/month on cell phones? That’s nuts. Perhaps some can afford that, but half the country is already broke. Guess they’ll pay the cell phone bill and skip those life-saving meds that they can’t afford?

While .03 per minute doesn’t sound like much, it adds up over time. Call it $5/day and it becomes a substantial lifestyle choice. The cost you describe is approaching what we spend to feed our family.

Then again, I’m not the person to ask. I’d pay that much NOT to carry a cell phone. They prey continually on your mind, either through repeated interruptions or (if silenced) through wondering what you might have missed.

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By: y2kurtus1 http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48846 Tue, 17 Dec 2013 02:52:33 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48846 To me it looks like all the wireless carriers are undervalued at current prices. Even in a world where 90% of customers who will ever have a cell phone already have one you can still grow pricing at like 10% per year. It worked for cable where the average monthly bill is up 125% in the last 10 years. People can piss and moan all they want about being gouged but if you do the math it works out to about 3 cents/minute of usage. I can easily see a $150/month average smartphone bill by 2016… people will whine… but they will pay.

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By: OneOfTheSheep http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48843 Mon, 16 Dec 2013 17:28:30 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48843 Don’t care. Just bring back the T-Mobil girl!

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By: ballmatthew http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48841 Mon, 16 Dec 2013 16:15:46 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48841 Felix – You’re a little off with respect to AT&T’s break fee. The $3B in cash was not “taken” by T-Mobile – it went to Deutsche Telekom, which has historically underfunded T-Mobile). That being said, the $1B in spectrum (which did go to T-Mobile) had an estimated market value of $3B, so it did help the company avoid large capital investments.

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By: worm600 http://blogs.reuters.com/felix-salmon/2013/12/15/t-mobiles-self-defeating-resurgence/comment-page-1/#comment-48837 Sun, 15 Dec 2013 17:10:22 +0000 https://blogs.reuters.com/felix-salmon/?p=22882#comment-48837 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.

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. (Sprint has a history of making lousy technology decisions – PCS, etc. – so I wouldn’t read too much into that alone.)

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