AT&T And Verizon Wireless Investors Unhappy With Increased Competition

If there is one thing investors do not want from the U.S. carrier market, it is increased competition, but in 2014 T-Mobile and Sprint showed they wanted to compete on all fronts.

Several investment firms have noted AT&T and Verizon Wireless should return to “rational” pricing and not try to compete heavily on price with Sprint, or heavily on features with T-Mobile.

However, the investors seem to have a short-sighted ambition of higher profit rates, since the downside of not competing with the other two carriers means more customers are likely to switch.

In 2014, T-Mobile secured 8.4 million new customers, Sprint secured 1 million in quarter four and looks to continue this trend of upwards growth in 2015.

Verizon Wireless managed only 5 million new subscribers, despite being available in more states than T-Mobile. AT&T managed 8 million, but has been more competitive with T-Mobile than Verizon Wireless.

In 2015, Sprint is preparing to cut more of its pricing plans, to beat the two main carriers. It will not compete with T-Mobile, currently in fourth place , due to T-Mobile’s cheap contracts.

T-Mobile will also continue working on its Simple Customers package, where most of the Un-Carrier announcements actually go to, hopefully adding more for the customer to enjoy.

Both T-Mobile and Sprint also feature executives that have shown capabilities in the business and social media field. Part of the T-Mobile USA brand is about John Legere, the CEO and customer savior; Sprint’s CEO Marcelo Claure founded Brightstar and grew it into a profitable $10 billion wireless giant.


Leave a Reply