Banks Lining Up to Fund Sprint Acquisition of T-Mobile
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I don't get it...
If T-Mobile is so hard pressed on cash they are willing to let Sprint lend a hand (one of their competitors) why is T-Mobile throwing such insane promos as the ETF deals? How are they planning on paying off the fees?
Unless I'm missing something, which I would like to be enlighten then.
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Think about it... create as much churn as possible, hoping that this dislodges as many customers as possible from the two biggest carriers, and then do something insane - create a third carrier that is almost as big as either of the two biggest, all at a time when as many people as possible are out of their contracts or in the act of looking to switch carriers. Could these moves be designed to dislodge as many people as possible in advance of a new big merger? Could this be a power-play by the two smaller carriers, knowing that they are about to merge, and thus orchestrating these crazy competitive profit-killing stunts right now? If Sprint is the company that will retain their name, then it is in the interest of both companies to let T-M...
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Small fry carriers always do this sort of thing. Hell, I should know it seems like I was always working for one. SunCom did this sort of thing to make themselves attractive to ATTWS. Air Touch Cellular did the same. The only small fries that DIDN'T spend like the Federal government were AllTel and US Cellular. Give away phones, have cut rate plans and a weak foot print and wait for one of the big dogs to buy you out. When I was with Verizon they acquired a carrier out of New Orleans that only sold All You Can Talk plans for $35. It was unreal. Verizon had a hell of a time convincing those yokels to "upgrade" to Digital Choice plans that were more expensive with 500 peak minutes. Ultimately they succeeded though by doubling the 500 t...
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