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Holy frac...T-Mobile family plan for 4 lines down to $100/month


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Interesting opinion - it seems like their lower churn, improving margins, strong customer growth don't really support your facts...

irev, Nextel did exactly the same thing. It's very easy to lose money while gowing your customer base. Can you do gow your customer base while you still make money? And it's one thing to have 2 year contracts and tie the new customers you just bought for two years it's another thing for them to be able to just move to AT&T whenver they want...

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The problem is that they're selling service below their long-term cost of CAPEX to maintain or improve the current network; building out A-block 700 and whatever they get from the upcoming auctions won't be cheap, and I think they're going to be caught with a lot of customers not under contract who can easily switch to AT&T (and in the future as VoLTE rolls out Sprint and Verizon), all three of whom could more sustainably match or beat T-Mobile pricing while keeping their networks operating smoothly (VZW and AT&T because customer adds are a drop in their bucket, Sprint because of the ability to evolve NV).




Please expand on why you think they are selling service below their long-term cost of O&M+capex.


You are basically saying that T-Mobile needs to spend the equivalent of $70,000 on each tower for upgrades, every year, and assuming that T-Mobile's revenues are flat.  That doesn't really make sense to me.

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