T-Mobile to Lose Clients… or Lose Deal

Filed in Gather Business News Channel by on October 7, 2011 0 Comments

Last year T-Mobile US saw 390,000 customers walk away from its doors. This year 1.2 million will be doing the same. If last year “everyone” left the cellular service provider, this year “everyone, their mother, and their second cousin” would be changing providers.

What usually happens at this point is a promotion; T-Mobile slashes the price of their service; gives away free texting with purchase of a certain phone; or gives away phones with every qualifying purchase. But not today. No, today T-Mobile US is trying to look more expensive than they are. Not as a social symbol, but to convince the Department of Justice that the merger between AT&T and T-Mobile won’t be such a big deal. T-Mobile is trying to give the impression that there isn’t that big of a price gap between their services and that of their competitors’, so that the prosecutors won’t have much fuel for their justice-hungry fire.

At this point, T-Mobile US must choose between cutting prices and struggling to survive as a company, or being cut by current clients and maybe being bought out by AT&T.

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