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Top message:  AMP'd T-Mobile rumor...(no not a merger) by mahoodlum   Jan 17, 2006, 2:21 PM

Replying to:  Re: AMP'd T-Mobile rumor...(no not a merger)... Wouldn't work by nextel18   Mar 28, 2006, 1:14 PM

Re: AMP'd T-Mobile rumor...(no not a merger)... Wouldn't work

by digitmasher    May 15, 2006, 7:01 PM

First off, it's illegal for a competitor to buy out a customer's contract that he/she has with another provider, it's considered an illegal churn. The contract the customer signed is an obligation between him/her and the carrier they signed it with.

Secondly, what would be the point in that anyway even if it was legal? Why would a company buy out a competitor's contract knowing full well that the same could happen with the customer they just acquired if they decide to go to another carrier or even to the original carrier?

It might make sense from the standpoint as an incentive for a customer to change carriers but a carrier already takes a hit from a new customer as it is, they already get larger discount on the handset pricing, the company has to invest money in building an account, generating a bill, and maintaining that customer in their billing system.

Another $150-250 may seem like a drop in the bucket for a billion dollar telecom company but think of how much that would add up to if each carrier were to buy out their competitors contracts, keeping in mind that is only if such a thing were becomd legal.It just wouldnt make financial sense for the company.

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