Home - , , , , , - Boost Mobile Founder and NWIDA President Unite in Opposing merger of T-Mobile and Sprint

Boost Mobile Founder and NWIDA President Unite in Opposing merger of T-Mobile and Sprint

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Peter Adderton (the founder and former chief executive officer of Boost Mobile) and Adam Wolf (the president of the National Wireless Independent Dealer Association) have released a joint statement expressing their disapproval of the proposed merger deal between major US wireless carriers T-Mobile and Sprint.

According to Adderton and Wolf, it is likely that the merger of the third and fourth biggest mobile operators in America (under the T-Mobile brand name) will negatively impact prepaid mobile users and wireless dealers in the United States. Interestingly, both men issued their joint statement just as Adderton's ALL4PRICE.com launched on the Internet. This website was created in order to provide information to consumers about possible issues and concerns that might arise as a result of the proposed T-Mobile/Sprint merger.

Adderton and Wolf firmly believe that the union of the two national wireless service providers would greatly reduce competition in the US prepaid market. Right now, the three top prepaid brands in the country are Boost Mobile, MetroPCS, and Virgin Mobile, which enjoy a combined market share of close to 50 percent. Sprint happens to own Boost and Virgin, while MetroPCS is operated by T-Mobile. If they get lumped under one big merged brand (T-Mobile), the resulting prepaid market concentration would lead to decreased competition, eventually giving way to higher average prepaid pricing for customers, and possibly, even lower quality in service.

Moreover, Adderton also took the opportunity to point out how T-Mobile’s and Sprint’s executives were not transparent enough in addressing what will happen to the 30,000 independent wireless dealers across the nation after the merger becomes official. Both him and Wolf have also expressed their concerns regarding the future of more than 300 mobile virtual network operators (MVNOs) that are currently leasing network capacity from T-Mobile and Sprint. These smaller carriers are already contending with slim margins even with the wireless industry’s Big Four set-up. If that structure is reduced to a Big Three (and with no wholesale pricing protections established), MVNOs will probably encounter increases in wholesale pricing, which could hurt their revenues or worse, force them to shut down.

Adderton believes that Boost Mobile will be directly impacted by the merger deal. According to him, the new T-Mobile business entity resulting from the deal will likely consolidate Boost with T-Mobile’s MetroPCS, presumably to save on costs. The ex-CEO has already requested the Federal Communications Commission (FCC) and the US Department of Justice (DOJ) to pressure T-Mobile and Sprint executives to sell off one or more of the prepaid brands as a condition for granting their approval of the proposed merger.



Source: FierceWireless

11 comments:

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  1. MVNOs haven't been competitive in years and Boost dealers haven't been relevant since forever.

    From a consumer's perspective, nothing of value will be lost.

    This is really just a bunch of self-serving, ass-covering propaganda in defense of their own income streams.

    As a consumer, I also take offense to having my voice hijacked by these pompous doomsayers, both of whom are pretending to speak on my behalf despite being members of the gilded executive class.

    They should speak for themselves and their associates, but definitely not Chuck Everyman.

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  2. Sorry, I find it hard to lend a sympathetic ear to the lament of the middleman.

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  3. Boost service is so bad they should take any and every hand out. Two TMobile tin cans would be an improvement

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  4. "Adderton believes that his Boost Mobile will be directly impacted,,,"
    Well, this wording is ironic since he doesn't own Boost....yet.
    The reason Adderton is against the merger is that he reportedly wants to buy Boost after the merger. He really wants FCC to require that Boost be spun off or for FCC to impose onerous MVNO rules as a condition of the merger approval. So he actually wants the merger to happen, but in a way that benefits him.

    "MVNOs will probably encounter increases in wholesale pricing..."
    According to whom? This is just a scare/pressure tactic aimed at the FCC and Justice. T-Mobile and Sprint have said just the opposite. They want to grab as many customers as they can from the Duopoly after the merger, and raising MVNO prices have the opposite effect. MVNO agreements help carriers gain customers who are not attracted to carrier plans. Both T-Mobile and Sprint CEOs state that they will be a much stronger competitor under the merger and that prices will continue to go down. They have a plan to field a nationwide mobile 5G network faster than the Duopoly based on their combines 600+2500 MHz spectrum, and will poach customer while Vzw and AT&T are still building fixed 5G with their mmwave spectrum and doing limited mobile 5G deployment. Continued, strong MVNO sales would help the new Tmo grow faster.

    "the union of the two national wireless service providers could create a monopoly in the US prepaid market."
    Well, I guess they slept through Econ 101 and 102. 50% market share held by one of three major wireless carriers does not qualify as a monopoly. And with DISH beginning their nation-wide IoT network they plan to grow into a full 5G network; cable companies ready to merge or partner with wireless companies; Apple still trying to launch wireless with their content; and Google and Qualcomm launching a new wireless partnership there will be several other choices for consumers once the merger is approved. Plus it would take 2 years to merge the two networks, and by then there will be more 5G alternatives.

    This "team" cares much more about their own plans and profits than they do about consumers. Be very skeptical.

    BTW, when will PPPN republish articles that support the merger? There are plenty out there now. No balanced news here?

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    1. ""the union of the two national wireless service providers could create a monopoly in the US prepaid market."

      You need to crack open a dictionary, bub. After such a merger, there will still be many many US wireless carriers. "Monopoly" means something.

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    2. Looks like you AGREE with @8:59AM, not the original post.

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  5. I agree, a merger will be really bad for consumers. Less competition means higher prices and less quality, basic logic.

    Beware of trolls in favor of merger, don't get discouraged to rise your voice.

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    1. "Less competition means higher prices and less quality, basic logic."

      That might sound good to YOU, but the history does not bear out your statement. Look at the cell phone era, please, and get back with us. You will see lots of mergers... and along the way a many-times over combination of lowering prices AND increased value.

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  6. My prediction for the fight... uh, I mean future:

    PAIN

    I think consumers will be the big losers if this merger is approved.

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  7. I am hoping that it would expand T-Mo's native network and their MVNO's will be able provide coverage.

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  8. I oppose the merger as well. I am glad it is getting push back.

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