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Wall Street Nervous About Increased Wireless Competition
The $43 billion spent on wireless spectrum and increased pressure to compete on price has Wall Street nervous about the wireless industry. The Wall Street Journal notes that the combination of the $43 billion spent this month on spectrum and increased competitive pressure resulted in the big four wireless carriers losing an estimated $45 billion in value. Wall Street's worries come on the heels of admissions by AT&T and Verizon that they're starting to feel the pinch of T-Mobile's uncarrier strategy. Of course should you actually listen to the carriers, all four have made it clear the last thing they want is a price war.
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bigballer
join:2014-09-25

1 edit

bigballer

Member

Good

Seems like anything that's bad for wall street ends up being good for consumers.

Solar panels?
bad, how are those utility companies supposed to make those exorbitant profits?
Tesla?
bad, how are those auto manufacturers supposed to adapt after striking deals with those oil companies
Low oil prices? BADfor those big billion dollar companies. It's bad for all those countries like Saudi, Venezuela, Russia, etc.
Yet the best damn thing that's happened in this country for a LONGG time.
elefante72
join:2010-12-03
East Amherst, NY

1 recommendation

elefante72

Member

Re: Good

What bad is the US auctioning off spectrum when it could be adequately shared w/ proper technology. That $43 billion will be pissed away in a day's worth of entitlements, but will keep my cell bill high for 10 years..

And this isn't even the juiciest spectrum. It's a land grab. These guys are buying land in Vegas at the peak...Next one and you have low frequency...Very juicy and expensive.
bigballer
join:2014-09-25

bigballer

Member

Re: Good

No doubt, tmobile with 700 mhz and 600 mhz spectrum will be on fire.

I'm amazed at how quick they built up their wideband LTE network and are transitioning EDGE to LTE. Hopefully my next phone will incorporate those 600/700 mhz bands.

And those cheap gas prices? Man, I can get used to this
elefante72
join:2010-12-03
East Amherst, NY

elefante72

Member

Re: Good

Don't once they flush out Putin, it will be back up.

The US are not dummies tho: »www.mrt.com/business/oil ··· cee.html
bigballer
join:2014-09-25

bigballer

Member

Re: Good

By 2020, I plan on getting a Tesla model 3. That is if Elon is right in pricing it around $35-40k.

Time for the oil companies to piss off.

But

I like cheap oil and I hope it goes lower. You know what I say people? Drill Baby Drill!
biochemistry
Premium Member
join:2003-05-09
92361

biochemistry

Premium Member

Re: Good

As long as you are powering that Tesla via windmills and solar panels. Otherwise big coal gets your paycheck.
biochemistry

biochemistry to bigballer

Premium Member

to bigballer
Not so hard when you only cover the big cities.
elefante72
join:2010-12-03
East Amherst, NY

elefante72 to bigballer

Member

to bigballer
Hate to break it to you but no utility powers their gens with oil and the money made is with origination and servicing not the utility itself or ye olde gas station.

The gas station makes money on selling you overpriced junk food, not gas.

That is why the big hubbub on the XL pipeline.. The average consumer thinks these oil companies are basking in profits.. Go check out Apple's P&L and we can talk.

Keep an eye on Tesla battery plant going up in Reno. Now that will be disruptive..

You are right -- this is a great for the consumer..and competition brings out the best.

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

cb14 to bigballer

Member

to bigballer
said by bigballer:

Seems like anything that's bad for wall street ends up being good for consumers.

And vice versa.
dfxmatt
join:2007-08-21
Crystal Lake, IL

dfxmatt to bigballer

Member

to bigballer
wall street has been expressly bad for consumers for a long, long time.

Rogue Wolf
An Easy Draw of a Sad Few
join:2003-08-12
Troy, NY

Rogue Wolf to bigballer

Member

to bigballer
said by bigballer:

Seems like anything that's bad for wall street ends up being good for consumers.

Well, duh. When you have analysts like Michael Pachter telling companies to "run the network for cash" and give minimum service for maximum profit, and CEOs are paid in stock to incentivize them to focus on the next quarter instead of the next ten years... what else could you expect?

Used to be that companies existed to serve the customer. These days it almost seems the opposite!

IPPlanMan
Holy Cable Modem Batman
join:2000-09-20
Washington, DC

IPPlanMan

Member

Bunch of mouth breathing going on here...

I guess we'd all be better off if service was more expensive...

Xela18954
join:2000-10-06
Richboro, PA

1 edit

Xela18954

Member

OMG

Heaven forbid.... Large US companies have to engage in real capitalism and compete with each other and actually serve and delight customers instead of fleecing them? Oh, heavens. What's this world is coming to?

Telecom companies have to spend money, upgrade the capacity and lower the prices? Not if Wall Street has to say anything about that.

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

cb14

Member

Re: OMG

The problem is that Wall street got half of the Americans by the balls. Just look at all the pension funds and IRA's - all, all most of the money is currently in stocks. So, if Tea or Verizon or Concast make less billions and the stock goes down your retirement will diminish. And if they privatize Social Security it gets even worse.
That's why people stay so mute.

Xela18954
join:2000-10-06
Richboro, PA

Xela18954

Member

Re: OMG

said by cb14:

The problem is that Wall street got half of the Americans by the balls. Just look at all the pension funds and IRA's - all, all most of the money is currently in stocks. So, if Tea or Verizon or Concast make less billions and the stock goes down your retirement will diminish. And if they privatize Social Security it gets even worse.
That's why people stay so mute.

Sometimes you can't have the cake and eat it too. This is that kind of situation. Wall Street wants less regulation and more pure form of capitalism. When large companies have to actually compete with each other, the Wall Street cannot complain the competition.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK

Premium Member

Re: OMG

Actually, they don't. Wall Street is just fine on crony capitalism and protected markets and barriers to entry so those companies can fleece their way to the future. Wall Street gets worried about REAL "level playing fields" and increased competition and open markets.

CaptainRR
Premium Member
join:2006-04-21
Blue Rock, OH

CaptainRR to cb14

Premium Member

to cb14
You aren't going to see people put there money in CD's earning less than 1% either thats a dead end.
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

trickle down

increases in efficiences have routinely never trickled down to the consumer. you had tmobile buy metro and aside from the ability to get low cost handsets.. not much has changed in the price of service..

nevertheless, tmobile & sprint have tried a few ways to get the big duopoly customers over.. but unless they actually build towers where some of these people live... that's not gonna happen. and in the case of sprint.. the service has to stop being in the "sucks" category..

btw, that 600 & 700mhz spectrum won't be available for current handsets.. that's more like 5g/lte
they don't just reprogram the handset and it automatically tunes to those frequencies.. try NEW handsets..
bigballer
join:2014-09-25

bigballer

Member

Re: trickle down

What are you talking about? Nexus 6 (as with the note 4 and other phones) already has band 12 (700 mhz) LTE built into the radio chip. It's been deployed in several places already..... unofficially

»www.tmonews.com/2014/12/ ··· detroit/

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

cb14

Member

Re: trickle down

I also have the 700Mhz band on my Zmax.

trparky
Premium Member
join:2000-05-24
Cleveland, OH

trparky to tmc8080

Premium Member

to tmc8080
I've thought about going to T-Mobile but there's two lines on my account that are simple basic phones. T-Mobile doesn't sell lines with basic phones so they're not a choice for me.
shmerl
join:2013-10-21

shmerl

Member

Doesn't Wall Street benefit from more competition?

More competition means more active market. They are intermediaries, and the more active the market is, the more it their potential for involvement.

w0g
o.O
join:2001-08-30
Springfield, OR

4 edits

w0g

Member

here is the bottom line

Who cares? What wall street is worried about really, is that they might end up getting a smaller chunk of peoples bank accounts with competition. They are upset that $45 billion has been diverted from investors pockets to the FCC, they are upset that further competition might further lower prices and therefore some investors might lose out big time. These problems impact p/e ratios, and existing investors lose value.

This has no impact on the population as a whole, the public wins when wall street loses yet remains afloat. The rich people, and Leacher investors, this upsets them quite a bit, because they lose.

Flyonthewall
@206.248.154.x

Flyonthewall

Anon

When you hear companies say they don't want to compete on price

Huge red flags should start waving with the word collusion and price fixing written on them.
DeViLzzz
join:2004-07-29
Sarnia, ON

DeViLzzz

Member

Re: When you hear companies say they don't want to compete on price

said by Flyonthewall :

Huge red flags should start waving with the word collusion and price fixing written on them.

You got that right.
rmdir
join:2003-03-13
Chicago, IL

rmdir

Member

Re: When you hear companies say they don't want to compete on price

Collusion and price fixing imply all the CEO's getting together in a back room at some smoky bar and formally discussing keeping prices artificially high. All they've done is look at each others pricing and decided there's no incentive to compete. TMobile has kicked the door wide open and the light is shining in now. It's not that dissimilar from the way the grocery store used to be here in Chicago, where the 2 major players looked at each others stores and decided to agree to not disagree. Wal Mart moved in, and that was the beginning of true competition. Same thing is going on now in wireless.
pittpete1
join:2009-06-12

pittpete1

Member

Do you hear me now Mr. McWireless?

Maybe Verizon will wise up and start expanding FIOS again. Wireless isnt the only game in town any more. The union isnt going away and you might as well secure for the future instead of today. Having 1 competitor like cable is not as bad as having 4.

DaveDude
No Fear
join:1999-09-01
New Jersey

DaveDude

Member

Re: Do you hear me now Mr. McWireless?

So true, even the densest and wealthiest parts of NJ , still dont have fios.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

What about the overall market losses

Thanks to big oil and the manipulation game that OPEC is playing, the broader market is down. Lets see where things go after the market stop overreacting to oil

cork1958
Cork
Premium Member
join:2000-02-26

cork1958

Premium Member

Re: What about the overall market losses

said by openbox9:

Lets see where things go after the market stop overreacting to oil

I don't think I want to!

justathought
@144.160.130.x

justathought to openbox9

Anon

to openbox9
said by openbox9:

Thanks to big oil and the manipulation game that OPEC is playing, the broader market is down. Lets see where things go after the market stop overreacting to oil

hopefully we will pull our collective heads out of our keesters and get a pipeline of our own. It's the only hedge bet we will have in fighting price increases.