This is not rocket science. If you sell something for less than it costs, you lose money. If you lose customers while doing that, you lose a LOT of money.
I am along with you but not thinking of getting back in as I have a feeling there will be a major Fire sale before long .TMUS can not back up these promotions without future help and my Idea is any future buyers if there might be one is not likely to feed the cash it will take to maintain them. Sprint stepped back from the bid table and has much more cash to work with and credit if need be. TMUS is still holding the high $20's on rumors someone may slap a bid down and my major question here is now that Sprint did step back from the table where are them so called bidders only a french company claims the are interested at $33 but they may also be rethinking their bid and could come in much lower. TMUS is going thru that break up Fee from AT&T like it is water and their lifeline is getting shorter.
Only my opinion
Sprint and TMUS are both missing the boat by not having a true 10 plan for only talk and text. Trak and Smart phone are making a fortune on theirs.
S and TMUS marketing specialist are missing the boat because a very large number of the people that sign up for a 10 dollar talk and text plan will automatically up grade to more expensive plans. Most people are never satisfied with the cheapest.
I used to get big dollars for this advice to companies.
ok answer your own question but use TMUS as a sample .
As for data Sprint candle much more then TMUS and in real life that data increase will not effect most customers as many use very little so what they do not use is now pushed over to the ones that do and that has been proven to be a very small group in many press reports.
So now I am curious to how you are going to answer your own question and lets not forget TMUS is fighting the same war
to deal with S price cuts. Double death throes between two minor players who never made the big time. Both of these will be struggling to survive in 12 months. JMHO
Im agree but sprint has much deeper pockets and agreements and a partnership with Dish. TMUS will live a short Struggle
Customers are continuing to leave Sprint for T-Mobile. You're right, as I've said several times already, a long-term price war benefits no one, but if two companies are fighting over the same pool of resources and only one is gaining any...
Great new about DT wants out and dropped the price to $35 and may not even get that as DT even said it would be risky for anyone as TMUS needs cash for more Spectrum and and to build out to compete with the other carriers.So now you tell me who has the best chance to win .
TMUS or the New owner can not afford the time it will take to complete a build out thats the main reason DT is lowering the Price and throwing the towel to the center of the ring they know TMUS will have a long road to travel to survive and they do not want to Risk it
Why is this?. maybe as they said it would be a Risky Bet for any Suitors as TMUS needs cash for the Spectrum auction and also to Build out and them are TWO Major Problems something Sprint has already has the most of Spectrum and coverage map compared to TMUS along with agreements and partnerships not to mention Sprints Build Out is about complete.
So depending on what happens to TMUS $35 to would be a good price cause in another month DT will be only getting market price for their shares when they start unloading them and at todays prices that could be $30 or less. But then again there is always the so called $33 French Bid if they are will to go with a break up fee and the fight to win approval from our Gov. FCC and FTC not to mention any anti-trust road blocks any carries may want to add and during this period of time what could happen to TMUS customers base ?.
Just a Train of thought
Why would it go to $50 - DT is on record as saying someone, anyone please give us $35 and you can have it. What that says to any savvy buyer is that DT is looking to get out at a desired price of $35, lets see how low they'll really go.
You rejected $33 a share because you thought Sprint was going to offer $40. Sprint walked away. The French company is re-evaluating their offer. DT comes out and says we'll take $35 or more. Ha...........you won't get more if you are willing to take $35 and if you are willing to take $35 now why wasn't $35 negotiable when you were offered $33?
DISH is one of the few suitors that DT can deal with. Iliad looks weaker financially. I think DT wants the outcome of the deal to be a competitive T-Mobile even if they are no longer a major holder. So they will likely continue to resist Iliads offer unless they find a partner.
DT could be goading Ergen to put an offer on the table. However, time is probably on his side: as Sprint joins in a price war and AT&T counters, the value of T-Mobile diminishes. Ergen might hold out for a quarter or two.. long enough for impacts of the price war to be felt, perhaps enough to send chills down DT CEO' back. Ergen may be able to pick up TMUS for around $30 billion.
I myself look for that $33 to drop . TMUS is in a mist of #$%$ and DT has already made that public. TMUS is a risky bet as they need Spectrum / Cash / and a much bigger build out to compete so Unless DT forks over much need cash That bid price could hit the mid $20's.
I think any bidder would be smart to hold of until DT shares become unlocked here in the next month or so as everything about TMUS share price has been due to merger chat so unless a bid hits the table the shares have no place to go but south. Only so many price cuts can be made before TMUS Bleeds .
I think the 35 or better language from DT was due to the realization that the govt is not going to allow a US company to buy them, so wants to get some M/A talk going again after S fell through due to govt interference/regs etc.