T-Mobile vs. Sprint: The Gloves Come Off for Third Place

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Aug. 25 (Bloomberg) -- Mediatech Capital Partners Managing Partner Porter Bibb and New Street Research Analyst Jonathan Chaplin discuss the competition between T-Mobile and Sprint for customers. They speak on “Market Makers.” (Source: Bloomberg)

And jonathan chaplin, analyst at new street.

Is a neutral rating on both companies.

I want to read to you a tweet we have from john ledger.

Here is one.

Our plan data strong network, listen to customers.

Sprint lan, trick customers with confusing offer, keep crap network, watch them run.

John ledger clearly talking a lot of smack.

-- john legere.

This is the battle of disruptors right now between sprint and t-mobile.

The investors probably will be on the short end of the stick that a great situation for consumers because they both have advocated price cutting.

I agree with his idea of the price cut sprint came out with.

Offering 10 and 20 gigabytes of data for very low price.

The average consumer cannot use more than one .5. who does that?

Teenagers.

Splints network operates about half the speed and most of the country to everybody else's. if you can get it.

20 gigabytes of data on the sprint network.

Can you afford these plans?

Cutting prices against one another to compete.

Both of those, sprint especially needs capital.

They have to build out the network.

They need billions of dollars and are losing customers.

Sprint is probably going to fall between now and the end of the year to number four, which is gaining t-mobile.

This is a fixed cost business.

Losing revenue is devastating, particularly when they're going through an investment cycle, which is friends at the moment.

Trying to get our attention with the of noxious tweets.

Is he getting customer attention?

Building a following clearly on twitter.

But can you see his effort reducing the cost of customer acquisition to t-mobile?

What he is absolutely doing its growing customers at the fastest rate t-mobile has in maybe 10 years.

The fastest-growing business in the wireless industry.

That is from a year ago being to wear sprint is today.

He has executed a phenomenal transformation of business in a short amount of time.

Initially it destroyed ebitda numbers.

Next year we think it will be the highest in history of the company.

What does it mean for at&t? they are laughing because they are not in the price bottle.

-- battle.

They are gaining customers.

Here you have them with deutsche telekom.

They want to sell.

They tried to sell.

Sprint saying they want to merge with t-mobile.

Both of them have tons of resources.

They're not available to either one of the operating companies.

Baby dish or charlie ergen will open up one or another.

That is still a regulatory issue.

It is clear these guys cannot survive on price cutting alone.

I disagree that they get out of this unscathed.

I think they will get hammered as well.

I think verizon lost customers for the first time ever.

At&t lost customers in the fourth quarter.

They responded to that with the price cut as well.

They should.

My phone bill in the u.s. is twice as expensive.

The iliad guy who made the bid for t-mobile, he is back talking to deutsche telekom.

If he can find more capital, he has a three-year-old price for monthly wireless service in france.

That would kill the u.s. market.

He says he will do that.

How much does it matter to verizon that they are losing these customers?

This is the retail customer.

At&t and verizon have huge corporate client basis.

As an analyst, how much value do you put on the retail customer versus the corporate customer?

The choices are made by individuals, not corporations.

Most warped rations will give you -- most corporations will give you -- [inaudible] exactly.

And they lost customers for the first time, they responded.

They responded to pretty dramatic price cuts for verizon at the time.

Clearly sensitive.

When we look at the carriers face, we do not think any of them are growing faster.

They are all business space.

This text has been automatically generated. It may not be 100% accurate.

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