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T-Mobile says the U.S. market is not big enough for four major carriers

0. phoneArena posted on 16 Nov 2012, 23:02

The U.S. had 321.7 million mobile subscribers in the second quarter, and while that equals the U.S. population, T-Mobile believes it is not enough business for four major carriers to divide; as a result, the nation's fourth largest carrier sees one of the top four carriers disappearing...

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posted on 17 Nov 2012, 08:10

17. myclevername (Posts: 94; Member since: 07 Jun 2010)

Numbers from AT&T's last quarterly profit report. Yeah, there are just too many companies in the U.S. and clearly, they aren't doing very well. At&T and Verizon need more business and more profits. T-Mobile is an annoying gnat that needs to go away.

$0.63 diluted EPS compared to $0.61 diluted EPS in the third quarter of 2011; $0.62 compared to $0.59 when adjusted for sale of Advertising Solutions, up more than 5 percent year over year
EPS up 6 percent year to date; up more than 8 percent year to date when adjusted for Advertising Solutions
Record cash from operations of $11.5 billion and record free cash flow of $6.5 billion in third quarter; full-year free cash flow guidance increases $2 billion to $18 billion or higher
$3.8 billion in stock buybacks in the third quarter; 101 million shares repurchased

posted on 17 Nov 2012, 13:17 1

23. Jyakotu (Posts: 854; Member since: 12 Dec 2008)

This really sounds like T-Mobile USA is really just ready to give up in the US market. I think there's plenty of room for 4 national carriers. Most of the other carriers in the US are mainly prepaid MVNOs and regional carriers.

posted on 17 Nov 2012, 16:34 1

24. roscuthiii (Posts: 2244; Member since: 18 Jul 2010)

Looks to me like Alling smells a pay day in certain bonuses, benefits, stock options, etc. from Deutsche Telekom if he can unload T-Mo off on another company.

Had something similar happen when the company I work at was bought out and the new parent company wanted the HQ moved to a new city. Our CEO got a super bonus for moving the company by a certain date well ahead of the actual migration deadline, even though the migration was frantic, mismanaged, & poorly executed causing major disruption to what was left of the business. He didn't care... he made his millions.

posted on 17 Nov 2012, 19:56 1

25. davidpoitier (Posts: 6; Member since: 07 Feb 2012)

Basically at some point Sprint and T-Mobile will merge and they will still be smaller than At&t and Verizon... #MarkMyWords

posted on 18 Nov 2012, 13:29

27. SprinT4You (Posts: 7; Member since: 11 May 2010)

It does sound like T-Mobile is suggesting that it may go away. I don't know why I believe this. I can say that if T-Mo did away with 2G Voice and upgraded to 3G and IMPROVED in-building coverage they would have better success, happier customers and their subscriber numbers would go up. Our regulators and political partisanship favored AT&T and Verizon for many years - because of these actions: two behemoths were born. These two duopolys have deep pockets and have the cash to build top notch networks. Making it difficult for carriers to grow and decrease competition. (If they spend the money like Verizon has) so - yes these two duopolys have an advantage and a whopping 50 million more customers and growing.

Don't give up just yet - T-Mobile!!! Next year you should be able to sell the Iphone, Ipad and Ipad mini. Continue with your 4G buildout. I have heard about the good reviews. When all is said and done - Tmobile, Clearwire and Sprint will have the breathing room to grow and steal customers from Big Red and Ma Bell after they are done with their 4G buildouts.

posted on 18 Nov 2012, 17:32 1

28. Mr.Mr.Upgrade (Posts: 474; Member since: 30 Aug 2011)

Tmobile what a joke lol

posted on 19 Nov 2012, 22:11

33. OccupyAJob (Posts: 7; Member since: 19 Nov 2012)

Sounds like grade A whine.

Here's a question, if any of these companies were to hit financial trouble would the government have to bail them out? The answer is, "yes." It means they are all too big already. Determine the max number of subscribers we're willing to accept lost if a telecom goes bankrupt and regulate telecomm maximum size on that number.

Somehow, I think we will see room for more than a dozen telecoms actually competing after that.

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