Investors Whine As T-Mobile Finally Forces Verizon Wireless To (GASP) Compete On Price
from the boo-hoo dept
Enter T-Mobile, which in recent months has been a rare disruptive force in the market, working to eliminate long-term contracts and ETFs, while slashing prices and embracing a number of new, pro-consumer policies (like free international data when roaming overseas) that heretofore had been quite foreign for a largely duopoly-controlled industry. T-Mobile's shenanigans have resulted in investors whining for months about the possibility of Verizon and AT&T *GASP* actually having to compete on price, as this recent, unintentionally-hilarious Reuters report illustrates:
"The most disappointing thing is that AT&T is reacting to T-Mobile," said Jefferies analyst Michael McCormack. "How long is it before Verizon reacts?"...McCormack (is) worried about the implication that industry revenue could be cut by $20 billion. "That's clearly not a healthy sign."Yes, how disappointing and unhealthy that a government-pampered duopoly has to suddenly compete on price, eroding artificially-inflated revenues resulting in better, cheaper service for everyone! McCormack's hellish, truly-Lovecraftian fears came true this week, as Verizon finally buckled to T-Mobile pressure and started competing more seriously on price. The company began offering loyalty discounts to existing customers, and unveiled a suite of new data options that boost data allotments for many users. While still not in range of T-Mobile's pricing, it's a start of something more closely resembling real competition in the wireless space.
The horror. The horror.