Also, as a counterpoint, when do you expect Sprint's operations to be in the black? Sprint customers continue to jump ship like fleas off a dog, and their new approach is to undercut the competition by selling products and services for less than they cost. What part of that business model results in positive revenue?
A downvote is not a valid response to the question. It just means you don't like thinking about the question or its answer. I can understand that though, if I were a Sprint backer I wouldn't want to think about it either.
Yes, I get it, you're trolling me. But I'm bored today, so I'll take the bait. Here's the answer that you've gotten several times already.
"...now we've discussed this in two different threads. But just to reiterate:
The only reason they are NOT profitable is because they are taking all of their profits and reinvesting it into infrastructure and resources. Put more simply, they are acquiring spectrum whenever possible and building more towers. Their goal is to offer a highly competitive PRODUCT, because you're right, simply undercutting the competition won't work forever. In order to improve the quality of the products and services they offer, they cannot take profits at the moment. You'd know that if you read their financial reports; the cost of customer acquisition is a minor expenditure as compared to what they're investing in the company itself. And acquiring customers will increase their revenue, which means they can either improve their network faster, or take a profit when revenue exceeds expenditures.
Now, if there's a merger or buyout that results in a capital infusion, they can take profits sooner, because they won't need to re-invest their revenue. If there's no merger, they can continue to take all of Sprint's customers and AT&T's (fun fact: the largest customer migration from any carrier to another during Q2 was from AT&T to TMUS).
Remember that they won't always need to expand at the rate they are now. There have been 30 new MetroPCS markets since the merger last May, and dozens of new TMUS corporate locations. They've built out 4G and VoLTE. They've added more spectrum for better building penetration. All it would take is a single quarter of scaling back their expansion and buildout efforts to be profitable, but that's not happening NOW because they're investing in the long term, not providing instant gratification payouts at the expense of the future of the company.
TMUS is letting a large group of customers escape to Trak and Smart phone. There are a few million customers out there that would be interested in a very low cost phone for only talk and text. Get these people on board and they will continually upgrade. S and TMUS should send me a big bonus check for this info. .
profit is not in the business plan of tmus. dt will get rid their entire share of tmus before or get rid one share at a time starting in oct., 14. tmus should take any bid which is above $3 a share, because that is where it is going.