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Why

Karl has done a very good job explaining that ATT is not buying T-Mobile for the subscribers (although that's certainly nice to have), ATT is buying T-Mobile to ensure that there is a duopoly with them and Verizon for the next decade.

How much would you pay to ensure that happens?

rahvin112

join:2002-05-24
Sandy, UT
There is no duopoly. You people act like Sprint doesn't even exist. Not only is Sprint in a very good position they have incentive to compete on price. As long as Sprint remains in the game there is no duopoly. Sprint will be at a disadvantage for a period until they roll LTE out, but with Lightsquared paying for the upgrade they are very well positioned to seriously degrade pricing and steal customers. Many of you might not even realize that Boost and some of the cheaper prepaid cellular providers are using Sprints network.

Sprint is a very good network these days, after a decade of mismanagement and the botched nextel merger they've finally brought customer service in line and fixed many of their problems. With unlimited data and the cheapest plans in the country they are very well positioned to compete (they also roam on verizon).

Skippy25

join:2000-09-13
Hazelwood, MO
Though technically you are correct it is not a full duopoly, if they merge the 2 companies will combine for around 80% market share and Sprint will simply be the bigger player sharing the remaining 20%. So for all practical purposes it will be a duopoly system and those that control 80+% of the market will get to dictate a lot of the market.


whizkid3
Premium,MVM
join:2002-02-21
Queens, NY
kudos:9
reply to rahvin112
said by rahvin112:

There is no duopoly. You people act like Sprint doesn't even exist.

There is when one looks at the availability of GSM phones & networks. There are only two in the USA - AT&T & T-mobile. American wireless users that need GSM to use their phone worldwide, must pick either AT&T or T-mobile. When only one is left, one can only guess at what the costs for the phones & SIM card accounts will skyrocket to.


wingdo

@bobbroadband.com
I cannot speak for Sprint, but Verizon has a number of "world phones" which are CDMA / LTE but support GSM outside the US. AT&T would not be the only way to use your cell phone out of the country.


whizkid3
Premium,MVM
join:2002-02-21
Queens, NY
kudos:9
said by wingdo :

I cannot speak for Sprint, but Verizon has a number of "world phones" which are CDMA / LTE but support GSM outside the US. AT&T would not be the only way to use your cell phone out of the country.

Understood. But 'supporting' means they can accept a SIM card. You just don't get one with your contract; meaning you typically have to buy a SIM card in the country your visiting; or from AT&T or T-mobile here. Exactly my point. There will be only one provider here.


Czarembo

@qwest.net
reply to rahvin112
Except when you want a signal. Sprint's coverage blows big time.


whizkid3
Premium,MVM
join:2002-02-21
Queens, NY
kudos:9
said by Czarembo :

Except when you want a signal. Sprint's coverage blows big time.

Very poignantly put.