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Investors Whine About T-Mobile's Competitive Impact
Most investors supported AT&T's acquisition of T-Mobile, given that the deal would have reduced overall competition in the market, driving overall revenues up. This week Reuters offers up a rather amusing report quoting many of those same investors, who are dismayed at the fact that larger carriers are having to compete with T-Mobile's latest efforts, ranging from early handset upgrade programs to free international data. "The most disappointing thing is that AT&T is reacting to T-Mobile," Jefferies analyst Michael McCormack complains to Reuters, noting that as T-Mobile adds competitive pressure, marketing budgets have to go up. The horror.

Most recommended from 34 comments



cb14
join:2013-02-04
Miami Beach, FL

5 recommendations

cb14

Member

What a disaster.

So, the big raiders are unhappy that they cannot rob us even more. How sad.They have to do something about it and I am confident they will.
The good old Mussolini comes to my mind. Corporatism=Fascism.
ISurfTooMuch
join:2007-04-23
Tuscaloosa, AL

3 recommendations

ISurfTooMuch

Member

No surprise here

This really isn't a surprise. Investors want one thing only: money, and they dislike anything that gets in the way of them getting as much of it as they can. In this case, they're pouting because T-Mobile is making waves and causing other companies to offer slightly more competitive deals. Obviously, AT&T and Verizon like the current situation, not only because they're on top but also because it's nice and predictable. That's why they copy each other's pricing and plans; while offering a better deal may increase market share, the other company will react, and that causes disruption, and the last thing either wants is a price war. Now T-Mobile has gone and tipped over the apple cart and introduced too much uncertainty into the market, and the investors are nervous and unhappy. Well boo-hoo, cry me a fucking river.