FCC Formally Approves Merger of T-Mobile and Sprint

[BuffaloTF]

Not talking about Moore’s law. Do some research on the history of cost per gigabit for running a network.

That’s a new marker, since a decade ago we weren’t consuming gigs. There’s really not going to be any history to research.

This is all Economies of Scale. Building the network is going to cost X number of dollars based on the year built and technology used. That X is divided by a fixed number of customers splitting that cost. Smaller customer base, larger costs that are passed down to the users... larger customer base, smaller costs passed down to the users - or rolled into more aggressive expansion and updates. The cost will either go down, or stay the same depending on path chosen.

 

[ghanwani]

That’s a new marker, since a decade ago we weren’t consuming gigs. There’s really not going to be any history to research.

This is all Economies of Scale. Building the network is going to cost X number of dollars based on the year built and technology used. That X is divided by a fixed number of customers splitting that cost. Smaller customer base, larger costs that are passed down to the users... larger customer base, smaller costs passed down to the users - or rolled into more aggressive expansion and updates. The cost will either go down, or stay the same depending on path chosen.

Have you tried doing some research? No need to look at gigabits. Look at cost per unit of bandwidth. It might change your point of view.

 

[picaman]

My husband and I are on the T-Mobile 55 Plus plan, and, like Charlton Heston, they will have to pry it from my cold, dead hands.

 

[codewrangler]

Cellular service is a utility that has been around for decades. Streaming TV services are fledgling services trying to gain subscribers. Prices may go up as time goes on (they have been without a merger), but not to the level of disgrace these streaming services do.

I see three big cell companies, instead of two. One being very progressive, forcing the other two to compete. T-Mobile has gone from teenage plans for your misbehaved teen, to a company that can compete with Verizon.

The real danger is when Legere leaves. No CEO will be able to take over the reigns.

I agree about Legere...he is the reason that T-Mobile is what it is today and his vision is what needs to continue, post merger (Legere is to be the CEO of the new combined company).

Besides, what would I do on Sundays, if there were no 'Slow Cooker Sundays'...LOL...J/K.

 

[MadeTheSwitch]

I am normally against such larger mergers like this. But this one I am in favor of. It’s different in that it involves technology of limited spectrum combined with a 4th carrier who just wasn’t doing good on it’s own anyway. Something had to give.

 

[cocky jeremy]

Well if there’s a consolidation of wealth and power in big business, I’m all for less competition in the marketplace. Less options promotes competition. Ideally, we’ll just have ma Bell again, and nothing else. That’ll be total competition!

What world do you live in where Sprint was ever considered actual competition to AT&T and Verizon?

 

[jjohnstonjr]

Hopefully, they replace the T-Mobile management with the people from Sprint.

Said no one! EVER!

 

[Techwatcher]

With SoftBank taking that huge 6b loss because of WeWork, since they have a good stake in Sprint this merger is needed at this point. People need to stop crying about it and just let it happen.

 

[NervousFish2]

There's another way. Nationalize the lot, and make wireless a public good, like sewage. Why are we paying the salaries of fat cat CEOs at a time of an unprecedented divide in income between rich and poor?

 

[coolfactor]

T-Mobile uses GSM while Sprint uses CDMA; any idea how this merger affects their network?

The networks will remain working for legacy devices and they'll build out their new 5G network separately. Just my guess.

 

[doctor-don]

It's because you're on AT&T. They'll continue to nickle and dime you. Same with Verizon.

AT&T has to nickle and dime you to pay for those weekly - if not daily - mailers they send to try to get your business. Talk about JUNK MAIL!

 

[BuffaloTF]

Have you tried doing some research? No need to look at gigabits. Look at cost per unit of bandwidth. It might change your point of view.

It's gone down, considerably. Family plans are nearly 50% less in many cases than they used to be.

Individual plans -- circa 2005ish... 450 minutes of calling ($40), plus unlimited data ($30), plus unlimited texting ($10) used to run 80/mo per line - a completely flat cost to today.

Family plans - Family of 4 circa 2005ish... these used pooled minutes, putting you to the 2100 minute plans ($110), plus unlimited data charged individually (30x4 = $120), plus unlimited texting charged individually (10x4 = $40). That's 270/mo. T-Mobile today is 40 or 43 per line at 4 lines, depending on regular or Plus... max 170/mo. AT&T has 3 tiers, 35 per line (140/mo), 40 per line (160/mo) or 48 per line... so max 190/mo. Verizon, classically the most expensive carrier, also has 3 tiers... 35, 45, 55 per line... max 220.

In all cases it's cheaper than old family plans. Except now minutes and texts are rolled in to the overall cost.

So... flat for single lines at a comparable service level... far cheaper for family plans.

Let's not even back it up into the 90s or 80s... before consolidation began. It'll just get silly when we start comparing several thousand dollar cell phone bills to what they are now.

Consolidation lowers prices... it's called Economies of Scale.

 

[vixster1901]

Why, Sprint is the worst, I hope its the opposite and to my knowledge, its T-Mo taking over Sprint

I think T-Mobile customer service has always been grand! 15 years. They even supported me with I had iPhone 2g unlocked and jailbroken. They were down with it all! They had a special department for the few 100 of us.

 

[Tech198]

Everyone sees to be merging now-days. Give it time.

Not allot left for 'good service anymore.'

Will it stay that way, is the question.

 

[randian]

Rosenworcel and the state AGs aren't thinking. Sprint's bankruptcy is inevitable, and in bankruptcy its assets go to the highest bidders: AT&T and Verizon. That is far worse for consumers than T-Sprint. There is agitation to force T-Sprint to divest spectrum. I am certain AT&T and Verizon are behind that agitation.
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It's gone down, considerably. Family plans are nearly 50% less in many cases than they used to be.

Family plans are pretty good deals these days, but postpaid single-line plans are grossly overpriced. All postpaid deals offered by the big 4 (now 3) are for family plans, they never offer deals on single lines.
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It's rather amusing to watch the the states posture and strut, while not addressing the elephant in the room: where were they when AT&T and Verizon obtained their current size by buying spectrum and regional operators pretty much at will?

 

[Alan Wynn]

We’ll just have to disagree on that. Not saying we should be the lowest but our cost per GB should be going down year after year, not staying the same or going up.

Why? Power costs go up, personnel costs go up, real estate costs go up, construction costs go up, government fees for all these things go up. While it may be true that the cost of some of the electronics goes down, it does not if one needs to stay on the leading edge to increase density to handle increased load and higher speeds.

 

[IG88]

Individual plans -- circa 2005ish... 450 minutes of calling ($40), plus unlimited data ($30), plus unlimited texting ($10) used to run 80/mo per line - a completely flat cost to today.

In 2005, that $80/month used to heavily subsidize a phone. So I disagree with your math that the cost hasn't increased.

 

[ghanwani]

Why? Power costs go up, personnel costs go up, real estate costs go up, construction costs go up, government fees for all these things go up. While it may be true that the cost of some of the electronics goes down, it does not if one needs to stay on the leading edge to increase density to handle increased load and higher speeds.

Did you try doing some research on this?

 

[ZipZilla]

John Legere is the Steve Jobs of the Wireless industry. Without him, there would be no unlimited plans. Period.

 

[ghanwani]

Dear America,

The 3 best national carriers (listed in alphabetical order) are:
AT&T
T-Mobile
Verizon

The 3 worst national carriers (listed in alphabetical order) are:
AT&T
T-Mobile
Verizon

Take your pick!

Now I'm off to write a clickbait article peppered with ads about the best and the worst carriers that is SEO so that it shows up in the top 3 links no matter which search engine you use!!

 

[Tallgrass]

Where does Virgin Mobile fit into this? Doesn't Sprint own Virgin Mobile?

 

[MacBH928]

committed to building out a nationwide 5G network covering 97 percent of the U.S. population within three years

This is funny, when there are still zones that 4G does not cover, this is closer to a joke.

-Does any one know how much does it cost to install 1 5G tower? Now how many towers would they install to cover 97% of USA.

 

[BuffaloTF]

In 2005, that $80/month used to heavily subsidize a phone. So I disagree with your math that the cost hasn't increased.

? A Blackberry Pearl cost 350 dollars retail. On contract they'd only charge 200. So... 150 dollar subsidy over 24 months? 6 whole dollars per month? The original iPhone in 2007 had no carrier subsidies at 600 dollars. The Razr came out at 700 dollars, with a 100 dollar rebate from Cingular.

 

[tito2020]

Hopefully, they replace the T-Mobile management with the people from Sprint.

Other way around

 

[fahlman]

This argument hasn't made sense to me. If Sprint failed their spectrum would go back to the US government who could relicense it to someone other than the existing big 3. This was an opportunity to send a message that usage of spectrum is a privilege not a right.

In fact, mergers should invalidate spectrum holding in their entirety. You can consolidate the brand and the hardware, but not the resources of the American people.

Sprint paid for that spectrum and therefore they have the privilege to use it. Because they paid for it, it was an asset of the company and contributed to its value. Also, that spectrum is used to support 12% of the country's cellular service and you just think the government should pluck it away, after it was paid for?