IDG Contributor Network: If prices are cut, users are all in for T-Mobile, Sprint merger
HarrisX says consumers would support the merger of T-Mobile US and Sprint if it does three things. If it results in lower pricing. If it boosts wireless coverage in underserved and rural areas. And if it results in economic growth. Let’s take a closer look at these three areas and see what we can expect.
Regarding wireless pricing. Unfortunately, based on other mergers, what I see is higher prices, not lower. Now this merger could be different. However, based on what we have seen in the past, I think prices will rise. They will stay lower than Verizon Wireless and AT&T Mobility, but they will likely be higher than today.
Wireless price will likely rise with T-Mobile, Sprint merger
The reason is simple. Today, both T-Mobile and Sprint need to capture the imagination of the marketplace. They need something to win market share. If they had the biggest or best network, they wouldn’t have to focus on price. However, to win market share they must give the customer something else. So, they focus on price.