T Mobile merger with Metro PCS

T Mobile merger with Metro PCS

Introduction

Mobile phones seem to be a necessity for the new and old generation. Mobile phone customers are using this technology for various means of communications and experiences; such as photo uploading, social media, music, browsing, and networking for a more effective business. Some top competitors in the phone market with nationwide coverage are Verizon, AT&T, and T-Mobile. Tessler (2013), “Wireless companies are clamoring for more airwaves to keep up with the explosive growth of online apps, mobile video and other bandwidth-hungry wireless applications”. As 3G is now considered something of the past more consumers are veering towards 4G LTE for the faster internet capability options. Although advanced technology is fantastic and fun many customers are also looking for right pricing and versatility of plans or no plan at all.

Discussion

Question 1

Many companies are beginning to merge so that their business can gain more coverage. Merging has proved successful in businesses and has its own benefits and economic efficiencies on a large scale. For example, T-Mobile merged with Metro PCS Communications in a deal that will boost customers and expand to other major cities. T-Mobile is a UK based mobile company. This mobile company is a collaboration of two countries and is a joint network of Germany and France owned mobile network. It is operated and owned by EE. Merging is when two or more companies merge together to join forces and increase efficiency. Another merger that was in the headlines recently was when AT&T was in the process of negotiating on buying T-Mobile. However this negotiation was declined because of the high position of these two nationwide companies, high prices to customers, and the concern of diminishing other competition. Cheng (2013), “Verizon and Vodafone now are exploring a range of options, from ending the joint venture to merging the two companies”. This venture is still in the talks but the possibility of the merge is highly anticipated.

Question 2

As T-Mobile watched the third largest carrier reap the benefits of gaining more customers, the fourth largest carrier choose a different path. T-Mobile decided to become a Samsung champion carrier. By doing that they carried the most Samsung phone models of any carrier, since Samsung is the largest cell phone manufacturer and the biggest Android phone supplier, which is the I-phones biggest competitor (Kwon, 2008). By being a Samsung champion T-Mobile designated their busiest locations to have a Galaxy Zone within their stores. These zones are an interactive zone for customers to experience what Samsung is bringing to the cell phone industry, and also to combat the fact that T-Mobile does not have the i-phone to sell, but rather several phone models that are superior the I-phone. Now when we look at the deployment of LTE services, both chose different routes. Sprint started their cell site upgrades and new construction in 2011, but with the cost to supply the I-phone sprints LTE plans have taken longer than expected. Sprint expects to have blanketed 200 ...