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Prediction 4: Low-cost carriers will experience a resurgence - 2009 Predictions

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The decision by Leap and MetroPCS to settle all litigation between the two regional carriers long thought to be headed toward a merger was big, but the 10-year roaming agreement between the two was even bigger.

Couple this with MetroPCS and Leap's decisions to offer nationwide plans and the fact that the economy is officially in a recession, and that's a potent brew for the two carriers to experience a renaissance of sorts. These low-cost operators with their all-you-can-eat bucket plans that don't require a two-year commitment are looking very appealing to consumers that want to tighten their budgets but still have cellular service.  

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Comments (3) | Post a comment
More stories about Mergers and Acquisitions   metropcs   Leap   Litigation   Regional Carriers  

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with boost mobile unlimited new plans on the idn network coming in Feb , these two companies will suffer , even with the roaming agreement , they still can’t compete with the coverage and plans boost mobile coming with .

Perhaps as a corollary to this, in 2009 we will see more Congressional/FCC scrutiny of carrier price plans to ensure fairness and competitiveness. That will include SMS plans, contracts, overall pricing, data roaming, etc. This will bring prices down further for majors.

Virgin Mobile is looking to benefit too. I would expect Virgin to keep growing and increase their DARPU.

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