Real quick here - I wrote you on Friday about T-Mobile USA's moves to unbundle handset subsidies and to reduce pricing. Apparently this is having an impact as all the major carriers have now reacted. Sprint has lowered its unlimited contract pricing and AT&T and Verizon have also partially unbundled handset subsidies. I believe US consumers will benefit.The big loser here will be handset makers.
We have a price war now - both in terms of mobile telecom contract pricing and in terms of handset subsidy unbundling. Sprint had already made its move on the contract pricing when I wrote on Friday. Yesterday, however, AT&T and Verizon moved to meet T-Mobile.
What has happened is that T-Mo is the low man on the totem pole nationally, the smallest carrier with the worst network coverage. ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.