How the iPhone Led To the Sale of T-Mobile 276
Hugh Pickens writes "Kevin O'Brien writes that Deutsche Telekom's announcement to sell its American wireless unit, T-Mobile USA, to AT&T for $39 billion ended a decade-long foray into the American market that was undermined, in part, by the advent of the iPhone (reg. may be required). Deutsche Telekom had been generating decent sales from its American operation, but after the iPhone went on sale, sold exclusively at first for AT&T in the United States, T-Mobile USA began to lose its most lucrative customers: those on fixed, monthly plans, who defected to its larger American rivals — AT&T and Verizon Wireless. 'The iPhone effect cannot be underestimated in this decision,' says analyst Theo Kitz. "Without being able to sell the iPhone, T-Mobile was in an unsustainable position and T-Mobile USA became a problem child." Ironically, AT&T's acquisition won't help T-Mobile customers get access to the iPhone anytime soon, as T-Mobile will remain independent, albeit under AT&T's stewardship, for around a year, and won't offer the iPhone to its customers during that period."
this is the weirdest story ever (Score:5, Interesting)
the iphone has zero to do with tmobile being sold, which, in case people haven't noticed, still has to be approved by the government. This deal actually might not be, in which case a lot of people will be happy.
What a joke of an article. It only looks at customers lost from the iphone, and not customers gained once tmobile picked up the G1, their first android phone. Talk about spin.
Have been prepaid for years now (Score:5, Interesting)
I switched to prepay about two years ago, having had my share of $50 plus per month cell contracts. Watching people pay $80 or more per month for their phones both amazes me and depresses me. They are still too much status symbol than need so the price doesn't have to be justified in the minds of many. Figure nearly a thousand a year just to have a 'smart' phone, for some its more.
Once you adapt to prepaid phones; this means adapting your friends to the fact you have one too; you rack up a lot of free time. By free I mean, not stuck on the phone or jumping at every e-mail/etc notification. Then to top it off with $50 or more in savings a month you start getting into the habit of looking at other expenses (monthlies) and realizing there is money to be saved everywhere, let alone time. Take that $1000 a year and put it into an IRA. You will get more from that than your cell phone could ever return.