OnDemand WTP Pricing Research

Collapse Of T-Mobile-Sprint Deal Could Spark A Price War | Business Insider

File photo of T-Mobile logo being positioned on a shop front

“We are talking about billions of dollars of capital spending in front of this company before the network is ready,” MoffettNathanson analyst Craig Moffett said, noting that Sprint likely has to cut prices to compete with the industry’s top players.

“Unfortunately raising capital spending and cutting prices at same time is recipe for a very ugly financial situation.”

Some analysts fear that Sprint’s decision to give up its dream of merging with T-Mobile US Inc <tmus.n> could lead to a wider price war as the top carriers slug it out in a nearly saturated market.

“Without the ability to compete on scale they are going to have to compete on price, so the two smaller competitors may become increasingly desperate to maintain market share and could become irrational in pricing, which could cause disruptions in pricing in the industry,” said Mark Stodden, analyst at Moody’s Investors Service.

Read complete article here:

Collapse Of T-Mobile-Sprint Deal Could Spark A Price War.

Post a Comment

WP-SpamFree by Pole Position Marketing