No more contract, no more contracts, no more contracts.
Done.
Buying a phone used to be a long thought process, because
you had to be stuck with it for the next year or two. By then, the phone looked like a big, dirty
rock in your pocket.
Now, the big names are turning toward NO CONTRACT. Cricket Wireless made the bar drop. The trend made AT&T and T-Mobile reverse their
product lines. Verizon, too. They had to figure out
where the money would come in at.
INSTALLMENT PAYMENTS.
“Chances are that
the carriers will still make some money on hardware sales. They buy in bulk and
would get discounts. Reselling for list price will possibly let them make more
money than they used to. Consumers will likely look for cheaper phone retailers
and just get the service without the need for new hardware (http://www.cbsnews.com/8301-505124_162-57593983/cheaper-mobile-is-coming-at-a-price/).”
In order for
AT&T to catch the trend they just purchased the parent company of Cricket
Wireless. The lesser company was in
competition with MetroPCS. Their sales
were spectrum in terms of city to city.
New customer sprang from lower prices and no burden of one and two year
contracts. AT&T didn’t view the
parent company of Cricket, Leap Wireless as a threat at all. The companies had different products.
AT&T
announced their intentions to buy Leap Wireless for a nice $1.2 billion. Those little cheap, lime green buildings are
worth $1.2 billion, now. Only in
America. If you knew so, your stocks just
took a 112% leap, recently. Very nice.
Why? You could ask this question.
“This not only
improves our spectrum position, it advances our offerings in prepaid service,” says
Brad Burns, a spokesman for AT&T. “We’ll make the prepaid market more
competitive. Leap’s customers will be able to ride on our fast LTE network.”
AT&T will win even more spectrum with the deal in the densely populated
areas where it’s having difficulty meeting current demand (http://www.businessweek.com/articles/2013-07-15/at-and-t-buys-leap-for-spectrum-gets-low-paying-customers).”
Spectrum is the
name of the game. Having vast amounts of
spectrum is the key. Spectrum is the
most valuable resource in the mobile phone industry. Who wants a phone where the calls drop, and
you miss messages, etc. AT&T will
have to reinvent their product line on a small level.
T-mobile on the
other pink hand has sucked up MetroPCS.
“The merger was announced in October 2012. According to the proposal, T-Mobile's parent company,
Deutsche Telekom, will pay $1.5 billion in cash for a 74 percent stake in the
company. MetroPCS's shareholders will own the other 26 percent of the combined
company. The new company will be called T-Mobile. Unlike AT&T's proposed $39 billion bid to
acquire T-Mobile in 2011, this merger has had a relatively smooth ride through
the regulatory approval process. Last week, the Justice Department allowed a
critical waiting period required under antitrust law to lapse, effectively
signaling its support for the merger. The Justice Department's statement today
simply means that the agency did not find any reason to block the merger due to
antitrust concerns. And the FCC has now
given its official stamp of approval, effectively stating that the merger is
within the public interest. The agency will now allow the transfer of wireless
licenses as part of the deal. (http://news.cnet.com/8301-13578_3-57573867-38/feds-approve-t-mobile-merger-with-metropcs/)”
Awesome, no more
contracts. It isn’t going to hurt anymore. You can cut your cell phone bills and worries
without missing all the new technology.
