http://www.dslreports.com/shownews/TMobile-Sprint-Lose-039-Per-Subscriber-Per-Month-135730
"In 2015 so far, Verizon and AT&T have earned roughly $17/subscription/month while T-Mobile and Sprint have collectively lost $0.39 on every subscription/month," wireless industry analysts Chetan Sharma states in his latest dissection of wireless industry profits. T-Mobile and Sprint offer promos and work to expand their smaller network footprints, while offering users unlimited data. AT&T and Verizon, in contrast, have "optimized their business on margins."
Granted these efforts are working for T-Mobile, who continues to add more postpaid phone subscribers per quarter than any of the other three major carriers. Most of T-Mobile's new subscribers continue to come courtesy of AT&T. Both AT&T and Verizon meanwhile have focused on connected cars (which help drive users past their usage allotments).
As for T-Mobile and Sprint, any hopes for a major merger or acquisition to help the two companies out (say by a cable company or Dish) isn't likely, argued Sharma.
"Given that the spectrum auction is coming up and the U.S. presidential cycle in 2016, the window of any major M&A in the service provider segment is almost closed and we might be looking at 2017 and beyond for any major transactions," he said.
"This means, T-Mobile and Sprint who were hoping for some form of a transaction by now will have to keep on competing and outdueling rivals for the next few quarters."
That's good news for us, and less so for the carriers.
"In 2015 so far, Verizon and AT&T have earned roughly $17/subscription/month while T-Mobile and Sprint have collectively lost $0.39 on every subscription/month," wireless industry analysts Chetan Sharma states in his latest dissection of wireless industry profits. T-Mobile and Sprint offer promos and work to expand their smaller network footprints, while offering users unlimited data. AT&T and Verizon, in contrast, have "optimized their business on margins."
Granted these efforts are working for T-Mobile, who continues to add more postpaid phone subscribers per quarter than any of the other three major carriers. Most of T-Mobile's new subscribers continue to come courtesy of AT&T. Both AT&T and Verizon meanwhile have focused on connected cars (which help drive users past their usage allotments).
As for T-Mobile and Sprint, any hopes for a major merger or acquisition to help the two companies out (say by a cable company or Dish) isn't likely, argued Sharma.
"Given that the spectrum auction is coming up and the U.S. presidential cycle in 2016, the window of any major M&A in the service provider segment is almost closed and we might be looking at 2017 and beyond for any major transactions," he said.
"This means, T-Mobile and Sprint who were hoping for some form of a transaction by now will have to keep on competing and outdueling rivals for the next few quarters."
That's good news for us, and less so for the carriers.
