Pre-emptive strike: AT&T to offer T-Mobile users $200 to switch

[GinaDee]

AT&T feeling the heat:  http://www.geekwire.com/2014/att-offer-200-credit-tmobile-switchers-preemptive-strike-smaller-rival/?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed:+geekwire+(GeekWire)

[Ascertion]

T-Mobile's plans are working.  Legere's To-Do list says to remove the Pain Points from Families.  How else to do so other than forcing competition to offer incentives to switch carriers? 

[GinaDee]

This is why I don't want Sprint to gobble Magenta up.  If for this reason alone.  

[Bob Newhart]

T-Mobile's plans are working.  Legere's To-Do list says to remove the Pain Points from Families.  How else to do so other than forcing competition to offer incentives to switch carriers? 

 

Speech is free, expanding coverage will cost T-Mobile real money.

[Boosted20V]

If T-Mobile goes it alone, do you really believe they can afford to keep offering such incentives?

[Destroyallcubes]

I think AT&T has more Money to do things like this. AT&T could keep doing a promotion like this. If they did it for all 3 carriers they could gain A decent amount of subscribers. I wonder if sprint would Offer it. Also remember Carriers have done this type of stuff before. But it has not been publicly advertised Like this could be(At least I havent seen advertised )

[Nickel]

Why don't we have a 'AT&T Network and LTE discussion' thread?

[GinaDee]

If T-Mobile goes it alone, do you really believe they can afford to keep offering such incentives?

 

Are you assuming that Sprint powered by Softbank is the ONLY option for T-Mobile USA to remain viable?  This is the same argument AT&T used.  

[GinaDee]

Speech is free, expanding coverage will cost T-Mobile real money.

 

That's what paying customers are for and T-Mobie needs more for sure.  They have to do it organically until a better choice rears its head. 

[Boosted20V]

Are you assuming that Sprint powered by Softbank is the ONLY option for T-Mobile USA to remain viable?  This is the same argument AT&T used.

 

Not at all. They can remain independent if they really chose to, but they will have no money for spectrum and upgrades if they keep hurting margins.

[dnicekid]

Are you assuming that Sprint powered by Softbank is the ONLY option for T-Mobile USA to remain viable?  This is the same argument AT&T used.  

No, but tmo and sprint will continue to need real money to constantly try and keep up.. merging would make it a lot easier..

verizon is said to be ready to start volte real soon.. handsets that support it should be out this year.

sprint is trying to get lte out, tmo is still trying to get rid of edge.. Both doing a lot of work just to saty in the game.

[JeffDTD]

So.... why not just have an all out tmo/att pricing war? Its not the network, its the price! Right? I fail to get excited. The day networks are equal everyones price adjusts.

 

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[GinaDee]

Not at all. They can remain independent if they really chose to, but they will have no money for spectrum and upgrades if they keep hurting margins.

 

I hold the opinion that there will be alternate suitors rearing their heads in early 2014.

[GinaDee]

No, but tmo and sprint will continue to need real money to constantly try and keep up.. merging would make it a lot easier..

verizon is said to be ready to start volte real soon.. handsets that support it should be out this year.

sprint is trying to get lte out, tmo is still trying to get rid of edge.. Both doing a lot of work just to saty in the game.

 

I agree additional funding always helps.  Sprint got SoftBank for their funding. 

 

T-Mobile will eventually be bought out or merged.  Whether it's Sprint, Dish, Vodafone, Carlos Slim etc. we'll likely know more later this year.  

[GinaDee]

http://9to5mac.com/2014/01/03/with-t-mobile-att-will-give-you-450-to-switch-kind-of/

 

 

Executive Statement

This is a desperate move by AT&T on the heels of what must have been a terrible Q4 and holiday for them. I’m flattered that we have made them so uncomfortable! We used AT&T’s cash to build a far superior network and added Un-carrier moves to take tons of their customers – and now they want to bribe them back! Consumers won’t be fooled…nothing has changed; customers will still feel the same old pain that AT&T is famous for. Just wait until CES to hear what pain points we are eliminating next. The competition is going to be toast!

-John Legere, CEO of T-Mobile USA

[jp1992]

Not something you would expect from a normal CEO. 

http://www.theverge.com/2014/1/3/5271130/john-legere-calls-att-desperate-after-advertising-to-his-customers

[JeffDTD]

The strategy is all end game to pump up DT's sale price. Smart though. And I admire any taunting of Randall Stephenson

 

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[Rawvega]

The strategy is all end game to pump up DT's sale price.

 

Exactly. IMO It would be premature of SoftBank/Sprint to try and buy them at this juncture. Let this play out for another 12-18 then see where they're at.

[Rocket87]

How can he call tmobiles network superior? Yea their plans are better but come on tmobile is worthless outside most cities.

 

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[jamisonshaw125]

How can he call tmobiles network superior? Yea their plans are better but come on tmobile is worthless outside most cities.

 

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I am so glad I am not the only one that was thinking that. 

[thewezgrays]

There is a LOT of T-Mobile talk on here and across the rest of the tech industry.  I truely do love them, they are the most competitive company out there and they are making the "other" three worried.  I like the way their CEO is playin' the social media game.  I love their pricing.

 

I just can't get over the fact that literally 3/4 of their coverage is 2G with no (public) plans to modernize.  If I lived in the middle of NYC or CHI or something, I would totally be there.. but being a country guy all my life, they are worthless to me at this point.

 

I do NOT want to see them merge with Sprint though, as they are what is really driving the innovation in pricing and no-contract pricing right now and I feel that Sprint/Softbank would shut that down instantly to return the industry to status quo.

[Rocket87]

I think the financing aka one up stuff is here to stay and maybe take over. All sprint keeps telling us is to push it if they are eligible and that is our most important thing for sprint right now. From what i understand is it is highly profitable. Right now sprint is shooting for a 50% one up rate on sales but from what ive seen is most stores only getting 20-30%. And that is because too many people are not approved for it because of credit or payment history. I truely believe though that in a year or two sprint will move to a one up only model.

 

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[richy]

How can he call tmobiles network superior? Yea their plans are better but come on tmobile is worthless outside most cities.

 

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Because it isn't run by Satan's mother in law

 

Networks vary location to location, we all know this. There are places, albeit in cities, where on occasion tmo does offer a better experience. Perhaps because their faux G was less congested or had more spectrum allocated to it. If you rarely needed rural coverage wouldn't you say tmo's network could be better? Cheaper and in some places faster? Admittedly it doesn't have the coverage and LTE isn't as widespread. If all 4 networks were pretty much identical we would be stuffed, no choice what so ever. It's all a matter of perspective. For some folks tmo (and Sprint) offer a better experience than the the other two. I'm not saying tmo (or sprint) is universally superior, although they are at least 400% less evil, but depending on your needs their network may be better.  

 

AT&T would have to do a lot more than offer $200 to make me switch. I did consider them a while back but honestly, the security of being able to avoid data overage induced bill shock and a few other things convinced me to stay with tmo until sprint rolled out NV here. 

[GinaDee]

 

 

I just can't get over the fact that literally 3/4 of their coverage is 2G with no (public) plans to modernize.  If I lived in the middle of NYC or CHI or something, I would totally be there.. but being a country guy all my life, they are worthless to me at this point.

 

 

 

 

I think you just answered your own question.  Most of the US population lives in higher density populated areas.  Perceptions are based on everyone's individual reality.  

[GinaDee]

How can he call tmobiles network superior? Yea their plans are better but come on tmobile is worthless outside most cities.

 

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What do you consider worthless?  Not being able to make/receive calls in rural areas or having slow 2G/3G data in areas with poor backhaul?