Financial analysts are divided over how much of an impact T-Mobile US' new family plan promotion will have on the carrier's subscriber growth and financials, and how the promotion will affect T-Mobile's rivals. The plan could put pressure on AT&T Mobility and Verizon Wireless, but analysts see the impact as being minimal at this point.
T-Mobile US is launching a new family plan promotion that undercuts similar plans from other carriers by around $60 per month for a family of four.
T-Mobile US CEO John Legere fired back at the Federal Trade Commission, accusing the agency of "sensationalizing" a lawsuit it filed against the carrier for allegedly charging customers hundreds of millions of dollars for purported "premium" SMS subscriptions that, in many cases, customers never authorized.
T-Mobile USA is trying to lure customers to its network by offering a free test drive for seven days with the iPhone 5s. Plus, as a further enticement, the company is offering Simple Choice customers unlimited access to six music streaming services, including Pandora, Slacker, iHeart Radio and Spotify, without incurring data charges on their 4G plans. Samsung's Milk Music and the forthcoming Beatport music app from SFX will also be offered to customers free of data charges.
The T-Mobile US brand will continue to thrive and the Sprin brand will likely take a back seat to T-Mobile if the two companies merge, according to a CNBC report.
Sprint and T-Mobile US are reportedly closing in on a deal for Sprint to pay around $32 billion for T-Mobile, and while the deal is not yet final, financial analysts say that Sprint would need to slash its prices to match those of lower-cost T-Mobile if the deal went forward.
T-Mobile US CEO John Legere would likely lead a combined company if Sprint and T-Mobile were to merge, according to a Bloomberg report. Legere is just one of the personalities at the center of the deal, which is being driven by SoftBank CEO and Sprint Chairman Masayoshi Son.
T-Mobile US CEO John Legere again intimated that the carrier would benefit through larger scale, likely via a merger with Sprint, and served warning to the company's larger competitors about a potential deal.
Sprint CEO Dan Hesse said that, without a stronger No. 3 U.S. wireless carrier, Verizon Wireless and AT&T Mobility will continue to gobble up the lion's share of profit in the industry. However, he said that in any hypothetical merger between Sprint and No. 4 player T-Mobile US, Sprint would have to work hard to convince regulators to approve it.
For the first time ever, Verizon Wireless in the first quarter recorded a net loss of handset subscribers. During a quarter when AT&T Mobility netted 176,000 new phone subscribers and T-Mobile US posted a whopping 1.256 million new phone subscribers, the analysts at New Street Research pointed out that Verizon lost 156,000 phone subscribers. Although Verizon managed to juice its first quarter net additions into positive territory with tablets and other devices, the carrier nonetheless suffered a serious setback. What's perhaps more concerning is that Verizon executives don't appear to be worried.