Killed Sprint-T-Mobile deal may mean lower prices

[Sherman A1]

NEW YORK • The collapse of Sprint’s push to buy T-Mobile US could mean fresh options in wireless plans and lower prices for U.S. consumers. But in the long run, tougher competition on prices could lead to slower service and slower expansion of coverage.

Sprint’s chairman, Masayoshi Son, said the company would shift its focus from “consolidation” — that is, buying up competitors — to “competing aggressively in the marketplace.” He is hiring Marcelo Claure, an entrepreneur who hasn’t run a wireless carrier before, to be Sprint Corp.’s new CEO, signaling that Son is looking for a new strategy.

Investors expect a price war to be part of that strategy, and shares of the four nationwide U.S. wireless companies — Verizon, AT&T, Sprint and T-Mobile — fell Wednesday.

Sprint may mimic changes made by T-Mobile US Inc. Last year, T-Mobile CEO John Legere tossed out the industry playbook, including the ubiquitous two-year service contract, and has drawn millions of new customers. Legere also cut prices, prompting AT&T to cut its prices. In the most recent move, T-Mobile launched a promotion last week with a cheap family plan that’s about $60 cheaper than the competition.

http://www.stltoday.com/business/local/killed-sprint-t-mobile-deal-may-mean-lower-prices/article_b96b4b69-0ace-5b46-bf48-44fd8b71777e.html

[customerserviceguy]

1. Glad to hear this collapsed

If T-Mobile merged with any of the big three cell carriers, I'd have to leave.

[Sherman A1]

2. Agreed

Of course there is the question of where to go if there was a merger. I certainly prefer more competition in the market.

[customerserviceguy]

3. It is a good question

But as I live in the greater NYC area, I probably have a few more choices than most. I just wish there were dozens of cell phone providers, it would really make the market competitive.