Is AT&T threatened by T-Mobile?

[MattMJB0188]

Switched from VZW to T-Mo and couldn't be happier. I know this is about AT&T but I feel like T-Mo is really a threat to the two big boys right now and I'll explain why in a sort of backwards way.

Here's the thing: T-Mo's coverage is not in any way as complete as VZW or AT&T. End of transaction. I travel all over the PA/NY/Del/NJ area and found myself in tons of EDGE spots while on the highway. Speeds were passable and I could listen to Spotify with minimal breakups.

THAT SAID, Verizon also has tons of really goofy dead zones if you live out this way, and Verizon's dead zones tend to be TRUE dead zones. Just no coverage whatsoever. Either you have LTE or you're gone. I was driving out to New Jersey today and was on EDGE for a while but it's not uncommon to lose LTE and even 3G along that route.

Speedwise there's no difference in my limited experience between VZW and t-Mo. Standard LTE speeds in the northeast, meaning between 7 and 16mbps depending on where you are.

So, in terms of straight-up coverage and speed, Verizon > T-Mobile. Inarguable. So why did I switch and why am I happy about it?

Simple: their plans are just plain better. I might not have LTE in as many places, and I'm not gaining any speed whatsoever, but T-Mo gave me a hefty credit on my bill to offset my ETF from Verizon, and now I'm getting unlimited everything for $70 a month. Verizon was going to charge me $90 a month for 6GB of data and 450 minutes talk time, and THAT was supposedly a "deal" they'd give me because I was a long term customer. For a Spotify user, the ability to put on playlists and radio in my car again every day instead of having to download to my phone is WELL worth it.

In the end, I'm sacrificing some coverage for a much cheaper bill and unlimited data plus breaking away from the biannual upgrade (well, one biannual for another biannual, damn English language). Plus the other neat bonuses like JUMP or the little bit of free lifetime data on an iPad. T-Mo has coverage where I go, and the places it has less than perfect coverage are places I'm only hanging out for a little work, not to watch Netflix, so I'm not losing anything.

Is AT&T threatened by T-Mobile? Maybe not right now, but they will be very, very soon. So will Verizon. T-Mobile is gaining customers at a crazy rate, and with that means more towers, which means better coverage. The rep I talked to in Scranton mentioned that with the increases in customers they're looking at expanding the service.

People say it's unsustainable. My friends in England and Europe are BAFFLED at how much my cell phone bill used to be. T-Mobile is the future.

They still can't make it using only higher frequencies. Their signal is overall, very weak. AT&T might have a slower HSPA+ network but its more consistent and most importantly STABLE. T-Mobile's is NOT. AT&T has a very solid HSPA network to fall back on, T-Mobile does not.

In my experience, I found T-Mobile fluctuating back and forth from EDGE to 4G to LTE constantly. That said enough for me.

 

[SomeGuyDude]

They still can't make it using only higher frequencies. Their signal is overall, very weak. AT&T might have a slower HSPA+ network but its more consistent and most importantly STABLE. T-Mobile's is NOT. AT&T has a very solid HSPA network to fall back on, T-Mobile does not.

In my experience, I found T-Mobile fluctuating back and forth from EDGE to 4G to LTE constantly. That said enough for me.

Two problems here.

One, the company isn't going to install a boatload of towers to iron that out without the customer base. There's a kind of chicken and egg situation going here, and I'm playing the part of the chicken. I guarantee that with their 2.1mil influx plus the new buyout plan occurring, T-Mo will be upgrading their network SIGNIFICANTLY.

Two, anecdotal evidence is dodgy at best. I was in EDGE for a while today and it was fine. And their LTE never blipped around when I was in an LTE area. Verizon had this weird tendency to drop to 3G or go entirely just because I went into a gas station. I saw people lose AT&T signal sitting down versus standing up. However I'm not going to say that this is "proof" that their network is bad. Like I said, VZW and AT&T are generally superior. They just are. I have seen no improvements in my coverage or speed from switching, but that's not why I did it.

See, T-Mo isn't perfect for everyone, and the rep I talked to readily admitted that they have huge areas with absolutely no 4G once you move inward away from heavily populated areas. But if you're somewhere with good T-Mobile coverage (which is a LOT of places) then it's really a no-brainer, and making the switch is going to help beef up their coverage even more.

I'm very optimistic.

 

[MattMJB0188]

Two problems here.

One, the company isn't going to install a boatload of towers to iron that out without the customer base. There's a kind of chicken and egg situation going here, and I'm playing the part of the chicken. I guarantee that with their 2.1mil influx plus the new buyout plan occurring, T-Mo will be upgrading their network SIGNIFICANTLY.

Two, anecdotal evidence is dodgy at best. I was in EDGE for a while today and it was fine. And their LTE never blipped around when I was in an LTE area. Verizon had this weird tendency to drop to 3G or go entirely just because I went into a gas station. I saw people lose AT&T signal sitting down versus standing up. However I'm not going to say that this is "proof" that their network is bad. Like I said, VZW and AT&T are generally superior. They just are. I have seen no improvements in my coverage or speed from switching, but that's not why I did it.

See, T-Mo isn't perfect for everyone, and the rep I talked to readily admitted that they have huge areas with absolutely no 4G once you move inward away from heavily populated areas. But if you're somewhere with good T-Mobile coverage (which is a LOT of places) then it's really a no-brainer, and making the switch is going to help beef up their coverage even more.

I'm very optimistic.

Good. I want them to succeed. I want them make AT&T and Verizon s*** their pants. But where I live, the only carrier that works is AT&T. AT&T is the only carrier that gives me a good signal at my house, with usable HSPA+ and LTE. T-Mobile is just EDGE that doesn't work at all. Sprint and Verizon are 1x with 1 bar.

 

[SomeGuyDude]

Good. I want them to succeed. I want them make AT&T and Verizon s*** their pants. But where I live, the only carrier that works is AT&T. AT&T is the only carrier that gives me a good signal at my house, with usable HSPA+ and LTE. T-Mobile is just EDGE that doesn't work at all. Sprint and Verizon are 1x with 1 bar.

Ahhhh. Yeah that's unfortunate, but I'd say hang tight. T-Mo will expand as people in places with decent coverage make the switch.

Right now it's kind of a damned if you do and damned if you don't situation. With the main carriers it's:

AT&T/Verizon - What good is it having nationwide coverage and high-speed 4G when my data plans are limited and prohibitively expensive?

T-Mo - What good is unlimited data when the coverage is poor?

Now between those two, the latter seems more likely to be improved by patronage. Giving AT&T money isn't going to make them lower their prices, but if T-Mobile gains customers they'll know that their business model is successful and they would absolutely want to expand coverage in order to get more customers.

 

[M5RahuL]

Freaking LOVE TMobile's coverage in Colorado and Texas LTE all the way!!

ATT def feels the hurt...

TMobile might be the underdog right now...but wait

 

[JackieInCo]

Freaking LOVE TMobile's coverage in Colorado and Texas LTE all the way!!

ATT def feels the hurt...

TMobile might be the underdog right now...but wait

You got that right about Colorado! It's unbelievable how they have improved the coverage on LTE. 4G is still spotty but LTE is almost wall to wall in my city.

 

[M5RahuL]

You got that right about Colorado! It's unbelievable how they have improved the coverage on LTE. 4G is still spotty but LTE is almost wall to wall in my city.

No kidding! I get LTE indoors ( Westminster) heck even in the basement!! . Same experience in Texas ( DFW )

 

[Lucille Carter]

I hope they all get threatened and threaten each other with better deals and improvements.
Competition is always great for the end consumer.
Unlike the 2 big carriers that compete on finding better way to nickel and dime their customers and charge more by giving less.

^^^^This^^^^

Competition is always the best!

I am balancing one of my business checking accouints and seeing a fee that I have never seen before called: Cash Deposit Fee of $15.

I called the bank and it is due to one of my tenants paying their rent in cash and now the bank charges me to deposit it! Competition is making me look at other banks today!

 

[iapplelove]

I can't wait to see how At&t reacts to the mass exodus of their customers when the subsidies stop. After all, we're putting them in the poor house with all of our smart phone upgrades. (sarcasm)

i won't be getting rid of AT&T any time soon. they blanket my entire area with LTE coverage, i still have unlimited data and to be honest i have been buying iPhones at full price every launch day anyway so however they decide to construct their new business strategy won't effect me.

 

[SomeGuyDude]

i won't be getting rid of AT&T any time soon. they blanket my entire area with LTE coverage, i still have unlimited data and to be honest i have been buying iPhones at full price every launch day anyway so however they decide to construct their new business strategy won't effect me.

And that's a totally valid reason, IMO. That's a case where it works best for you because you're grandfathered into the glory days when they weren't gouging customers. For others? I cannot see why anyone who lives in an area with good T-Mo (or even Straight Talk or Black) coverage wouldn't use them.

 

[Applejuiced]

^^^^This^^^^

Competition is always the best!

I am balancing one of my business checking accouints and seeing a fee that I have never seen before called: Cash Deposit Fee of $15.

I called the bank and it is due to one of my tenants paying their rent in cash and now the bank charges me to deposit it! Competition is making me look at other banks today!

That's a nonsense fee.
Charge you $15 to deposit money to your account?
I'd start looking for a better bank too.

 

[parseckadet]

I think this pretty much answers the original question in this thread:
AT&T Hits Back at T-Mobile with Up to $450 in Credits for Switchers

Notice that the deal is only available to those switching away from T-Mobile. AT&T wouldn't be opening up their pocket book like this if they weren't feeling threatened.

 

[parseckadet]

Freaking LOVE TMobile's coverage in Colorado and Texas LTE all the way!!

ATT def feels the hurt...

TMobile might be the underdog right now...but wait

You got that right about Colorado! It's unbelievable how they have improved the coverage on LTE. 4G is still spotty but LTE is almost wall to wall in my city.

No kidding! I get LTE indoors ( Westminster) heck even in the basement!! . Same experience in Texas ( DFW )

I'll echo the praise for T-Mobile coverage in Texas and Colorado. I had T-Mobile in Colorado from '03-'07 and never had an issue with coverage, even back then. And my mom has been with them this entire time and the only place she has problems is in the neighborhoods in the hills of Colorado Springs, where all the providers have problems. Now I have them again in Houston and have excellent coverage here as well.

 

[I7guy]

I think this pretty much answers the original question in this thread:
AT&T Hits Back at T-Mobile with Up to $450 in Credits for Switchers

Notice that the deal is only available to those switching away from T-Mobile. AT&T wouldn't be opening up their pocket book like this if they weren't feeling threatened.

I don't think they are threatened, what's good for the goose is good for the gander.

Saying ATT is threatened is like saying Honda is threatened when Toyota put it's cars on sale. Just business as usual.

 

[Lucille Carter]

That's a nonsense fee.
Charge you $15 to deposit money to your account?
I'd start looking for a better bank too.

Agreed! Went back and looked and I made three cash deposits $1400, $950 and $900. I have a meeting with the local branch manager but I will not make headway against Wells Fargo Bank! Not real fond of these people but they took over my original bank during the "bank stress tests" when we went into the recession!

 

[SomeGuyDude]

I don't think they are threatened, what's good for the goose is good for the gander.

Saying ATT is threatened is like saying Honda is threatened when Toyota put it's cars on sale. Just business as usual.

Bad analogy for a few reasons. One is that people can have a Honda and a Toyota. They aren't monthly fees. Once you buy your Honda, you bought it. Honda isn't losing your business on a previously bought vehicle if you switch brands. There is an enormous difference between single-purchase items and subscription fees.

Think of it like this: AT&T needs your business EVERY MONTH. Honda doesn't expect consumers to buy a new car more often than every couple of years. Their marketing is for new customers and they just need that big sale. They need to attract someone who's looking at purchasing a car, not retention for ongoing sales. You bought a Honda? Excellent, Honda is no longer concerned with you, and Toyota's already lost the sale.

Secondly, AT&T isn't offering this deal to Verizon customers or Sprint customers, ONLY T-Mo. When a company specifically targets a single competitor with something like that, that's evidence that they feel threatened. They're frantically trying to get back as many of the customers as possible that they lost TO T-Mo last year.

 

[2298754]

Secondly, AT&T isn't offering this deal to Verizon customers or Sprint customers, ONLY T-Mo. When a company specifically targets a single competitor with something like that, that's evidence that they feel threatened. They're frantically trying to get back as many of the customers as possible that they lost TO T-Mo last year.

Couldn't we flip this around at T-Mobile? Why do they constantly single out AT&T? Do they feel threatened?

 

[SomeGuyDude]

Couldn't we flip this around at T-Mobile? Why do they constantly single out AT&T? Do they feel threatened?

They're not "threatened" because they don't have the throne. T-Mo is the underdog, so of course they're targeting the big dogs VZW and AT&T. Those two rule the roost, thus any companies who want to break in have to target them.

Think of it like boxing. Of course the underdogs are going to call out the champ, but if the champ suddenly starts responding specifically to ONE challenger, it means he knows the guy is a threat.

 

[I7guy]

Couldn't we flip this around at T-Mobile? Why do they constantly single out AT&T? Do they feel threatened?

TMO has more to lose, like going out of business or being valued as a penny stock, than ATT.

 

[MattMJB0188]

They're not "threatened" because they don't have the throne. T-Mo is the underdog, so of course they're targeting the big dogs VZW and AT&T. Those two rule the roost, thus any companies who want to break in have to target them.

Think of it like boxing. Of course the underdogs are going to call out the champ, but if the champ suddenly starts responding specifically to ONE challenger, it means he knows the guy is a threat.

But they don't target their biggest competitor, which is Verizon. They single out AT&T. Sprint should be next, but they ignore them too, which I can understand, but definitely not Verizon.

 

[parseckadet]

But they don't target their biggest competitor, which is Verizon. They single out AT&T. Sprint should be next, but they ignore them too, which I can understand, but definitely not Verizon.

First, they're picking on one specific carrier because they feel focusing on one will have a bigger impact than spreading their ammunition out among all their competitors. Second, they chose one of the big two because there's a larger audience to target than if they had gone against Sprint. Finally, they chose AT&T because, among the two, they feel AT&T is more vulnerable to the type of campaign they are running. Thus, they focus everything on AT&T.

 

[MattMJB0188]

First, they're picking on one specific carrier because they feel focusing on one will have a bigger impact than spreading their ammunition out among all their competitors. Second, they chose one of the big two because there's a larger audience to target than if they had gone against Sprint. Finally, they chose AT&T because, among the two, they feel AT&T is more vulnerable to the type of campaign they are running. Thus, they focus everything on AT&T.

Well they sure didn't think that way two years ago when they wanted to get in bed with AT&T, did they?

 

[Lucille Carter]

Competition is always good! T-Mo was taking a few of ATT's customers so AT&T is now responding. The ball in now in T-Mo's court!

I will stick with AT&T

 

[parseckadet]

Well they sure didn't think that way two years ago when they wanted to get in bed with AT&T, did they?

They were losing how many subscribers per quarter two years ago? Yeah, they should keep using that do-nothing strategy today.

 

[I7guy]

But they don't target their biggest competitor, which is Verizon. They single out AT&T. Sprint should be next, but they ignore them too, which I can understand, but definitely not Verizon.

With the big two nixing unlimited data plans, tmobiles plan is a pipe dream. It's only a matter of time until tmobile nixes this plan.