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jagged

join:2003-07-01
Boynton Beach, FL

1 recommendation

Hate to say it but...

... I told you all so. T-Mobile's current activations are 80% on Value Plans that offer the device subsidy.

And if AT&T is planning on doing it, guess what Verizon is thinking about? Yep, same thing. It's just a matter of time, to let the mathematicians figure out the pricing so ARPU and EBITDA don't drop take a it.

AT&T and Verizon both hate subsidizing the iPhone especially, it is costing them an arm and a leg. Sprint learned that the hard way, enough to let Softbank buy a 70% stake in them.


tanzam75

join:2012-07-19

said by jagged:

And if AT&T is planning on doing it, guess what Verizon is thinking about? Yep, same thing. It's just a matter of time, to let the mathematicians figure out the pricing so ARPU and EBITDA don't drop take a it.

But it's interesting that AT&T is first to follow along. Are they seeing a lot of iPhones defections over to T-Mobile? Because they're a GSM/SIM-based carrier, it's easy for someone to take their old AT&T phone over to T-Mobile. And as the most iPhone-heavy carrier (80% iPhones), AT&T is also paying the most in subsidies.

Verizon doesn't feel quite as much pressure from T-Mobile, because they're a CDMA/ESN-based carrier. You have to buy a new phone to switch to T-Mobile, and that's a barrier.

Sprint has already given its pound of flesh to Apple. They're stuck.