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Six (6) Ways The T-Mobile-Sprint Merger Will Affect You
FiTechnology Council, I'm already getting on my smartphone solicitation from Sprint since they've merged with t-mobile. This morning it was an ad for an upgrade to a higher order phone either the current iPhone or one of the Samsung Galaxy clones with the associated 18 month contract. Now, I pay as I go with MetroPCS a subscribed to t- mobile. ..."Welcome to the Big Screens.
Pre-order for $0/mo. with eligible trade-in and Sprint Flex lease
iPhone Xs 64GB $0/mo. after $41.67/mo. credit, applied within 2 bills. Reqs 18 mo. lease, new line or eligible upgrade and approved credit. If you cancel wireless service, remaining balance on device becomes due. Excludes tax. Limited time offer! Ends 9/27/2018."
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FiTechnology Council
Successful CIOs, CTOs & executives from Forbes Technology Council offer firsthand insights on tech & business.
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Telecommunications has changed a lot over the last the last decade. Now, access to telecom services seems to be everywhere. However, with only a handful of distinct companies, competition is fierce. Now that Sprint and T-Mobile are merging, the pool of providers has shrunk even more. What will the effect be on the market and on the consumers?
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
We asked members of the Forbes Technology Council for their thoughts on what this merger means for the industry overall. While the reviews were somewhat mixed, it seems inevitable that developments will happen faster and there will be both gains and losses for consumers.
1. Less Overall Value
When T-Mobile was a smaller company, it had to offer attractive pricing for customers to compete with other telecom giants. Now that it’s gotten bigger and became a giant in its own right, I expect less attention to customer needs and more attention to financial results for better stock performance. - Michael Fimin, Netwrix Corporation
2. Increased Growth
The merger of these two telecommunication giants has its advantages and disadvantages. On the one hand, it can be a cost-effective method to fuel expansion and increase growth, diversify the companies and lead to an increase in research and development. On the other hand, the merger can lead to monopoly power and higher prices for consumers as well as further dissociation to communicate and coordinate. - Alexandro Pando, Xyrupt
3. Faster 5G Expansion
With their combined bandwidth, we should expect a faster rollout of their 5G internet. The expansion of faster internet will provide better education and remote job opportunities for those in areas that may be stuck with slow speeds and high prices such as rural areas. As someone who has a fully remote workforce, I’m always championing faster-speed internet rollouts. - Thomas Griffin, OptinMonster
4. Fewer Options
It boggles me that antitrust regulators are even considering a merger of this caliber. There are only four wireless choices right now when you overlook discount services that are tethered to and serviced by the major carriers: AT&T, Sprint, T-Mobile and Verizon. Reducing this number to three creates a wireless services industry that reminds me of what led up to the Bell System breakup. - Michael Gargiulo, VPN.com
5. More Added Value
The potential merger between T-Mobile and Sprint will have a resounding effect on the telecommunications market. With the race for 5G being the finish line for a variety of telecom companies, this now means that it’s likely that all providers will be very competitive to gain market share in addition to providing more added value. A golden age of telecommunications is right around the corner. - Donald Hawkins, CitySmart
6. Less Competition
AT&T and Verizon will feel the competition since this newly merged entity will be playing on a level field with the big two. However, at the same time, there will be no competition for tier two, where T-mobile and Sprint were. So, customers can expect to get lower prices from AT&T and Verizon as compared to their current prices but slightly higher prices for the new entity as compared to T-mobile’s or Sprint’s current prices. - Vikram Joshi, pulsd
Herein, is most likely, how it'll shake out exmaple Metro PCS... I'm on a prepaid plan for $60/ month - unlimited...
T-Mobile's MetroPCS changes name and adds unlimited lure: Amazon Prime and Google One
Metro by T-Mobile drops PCS, adds Amazon Prime
“Prepaid wireless” hasn’t always carried the best reputation. Often, what leaps to mind is less-than-stellar coverage, cheap flip phones, or consumers with lousy credit. MetroPCS is hoping to alter what it insists is an outdated perception with a name change announced Monday, coupled with two new tiered unlimited wireless plans that feature benefits through Amazon Prime and Google One.
Beginning Oct. 8, MetroPCS becomes Metro by T-Mobile, reflecting not only that the prepaid carrier has been owned by the nation’s No. 3 wireless provider since 2013 but that its customers get cell service from the very same network as regular T-Mobile customers and have access to top brand handsets, too, including the latest iPhones.
What the new plans offer
Under the cheapest of Metro’s newly announced unlimited plans, you’ll pay $50 for a single line, $80 for two lines or $140 for four. Taxes and fees are included in this prices, and the deal comes with 100 GB of cloud storage and mobile backup through Google One. You’ll also be able to share up to 5 GB of higher-speed LTE with other devices as a mobile hotspot. No contract is required.
The second plan, also contract-free, ups the price by $10. So you instead pay $60 for a single line, $90 for two, or $150 for four. That buys you triple the LTE allotment for a mobile hotspot, and also gets you free Amazon Prime, including access to all the Prime video and music available to other Prime members, plus free one- or two-day shipping on some of the produces you purchase on Amazon. It typically costs $119 a year for Prime.
The fine print: These rate plans are U.S.-only, ruling out and Canada or other overseas locales.
HD video streams are limited to lower-resolution 480p. During periods of network congestion, customers who use more than 35 GB of data during a month may be throttled, or slowed down, until the next billing cycle.
Metro by T-Mobile is keeping existing Metro plans in the lineup, though they don't include unlimited data or the Google One or Amazon Prime benefits. Starting price: $30 for a single line with 2 GB of data. (Unfortunately I pay $60/mon. going rate, but will not get prime or one, as an existing customer, it would seem. so much for brand loyalty.)
Prepaid versus postpaid
Metro's big brother, T-Mobile, as well as rival (mainly) postpaid wireless carriers offer aggressively priced plans and bonus content as well, which sometimes masks higher priced plans or adds to consumer confusion. Some T-Mobile deals come with free Netflix, for example, some AT&T deals come with HBO or DirecTV and some Sprint deals come with Hulu. Confusion often reigns in the wireless space.
Along the way, the distinctions between prepaid and postpaid phone service are getting fuzzier as well. In general, prepaid plans tend to cater to more budget-conscious consumers who prefer paying in advance for the airtime they think they’ll use. MetroPCS, and Sprint-owned Boost Mobile USA and Virgin Mobile USA epitomize such brands, though there are others.
Metro by T-Mobile president Tom Keys acknowledges the challenges he faces. He says about 7 out of 10 people who are in Metro’s backyard do not even consider its service these days, a statistic he finds “sobering.” Metro only has about a 5.5 percent market share in areas where it supplies coverage.
These people “view prepaid wireless as missing something, as a thing that you have to compromise with,” Keys says. He concedes that MetroPCS was at least partly responsible for such a negative view, given its early 2000s roots as a regional carrier that operated in just a dozen cities.
“Quite honestly, we didn’t have all the good stuff,” Keys says. “We didn’t have content in our rate plans. We didn’t have handsets people wanted to go get. And we never talked about the network because (it) only operated on a thinner set of frequencies.”
That began to change after the T-Mobile acquisition in 2013. That year, the T-Mobile network coverage area numbered 103 million people. Today, that sum has more than tripled to 323 million, or 99 percent of the U.S. population. Metro itself now has 18 million customers and more than 10,000 retail outlets – a larger number of stores, Keys points out, than Walmart, Target and Costco put together.
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