Thursday, October 4, 2012

With the MetroPCS merger, T-Mobile firmly embraces the ‘bargain basement' label

With the MetroPCS merger, T-Mobile firmly embraces the ‘bargain basement' label

. When thinking about Deutsche Telekom's most recent attempts to merge T-Mobile with other carriers, consider the following three points. First, AT&T's (T) average revenue per user is $65, while MetroPCS's (PCS) ARPU is $41. T-Mobile has now pivoted from trying to merge with the highest-ARPU mobile operator in America to merging with the lowest-ARPU mobile operator in America. This is profoundly weird. The strategic objectives of these two merger attempts are perfect opposites. AT&T's ARPU is so high it's $9 above Verizon (VZ). T-Mobile switched from courting Kate Middleton to hooking up with Khloe Kardashian.

Boy Genius Report , With the MetroPCS merger, T-Mobile firmly embraces the ‘bargain basement' label, With the MetroPCS merger, T-Mobile firmly embraces the ‘bargain basement' label