The much-awaited merger of the two greatest carriers of the nation just went to dust when it was announced this Saturday that the two companies were unable to find mutually agreeable terms. Consequently, leading the merger and any related thought to go down the drain.
The news was not much of a shocker to many for a report by Japanese publication Nikkie stated the merger talks would be off for the companies could not agree over the ownership of the combined organization.
The merger would have given the two companies, Sprint and T Mobile certain leverage over the two top carriers in USA Verizon Wireless and AT&T. But no such notion exists now that the merger talks have ceased.
However, there is nothing to fret for the consumers. The calling off might have affected the potential investors, yet the consumers are at a big advantage. For if not called off, it would have ushered in industry wise changes that would have affected the people. Many of the offers given by the carriers would have been lost.
As it has been previously known that the above mentioned carriers have been through some setbacks. But it they successfully overcame it by quite catch offers for the users. Especially if talk about Sprint and the competition it faced from the other carriers, which it successfully overthrew by lowering its carrier cost. Positioning itself as the lowest-cost carrier among the top 4 carriers (which also include Verizon VZ and AT&T). Even going as far as, offering a full free year of service.
Now consider if the merger was to take place, you would have found yourself devoid of any such offer and all those catchy deals. So it’s kind of a win win situation for the consumers if you ask me. For a merger would mean three companies, less competition, fewer offers, and completely no irrational competition or stupendous deals.
Additionally, the future of unlimited plans would not have been guaranteed. Unlimited plans first came on the scene with the introduction of the smartphone, but eventually fell out of favor because network speeds were being slowed down. Recently though, these offerings re-emerged as a way to attract more new customers.
However, had competition been reduced as a result of a merger, customer acquisition would have ceased to be a priority for wireless carriers.
While the network would have expanded more if the merger was successful, one should not be vary of the fact that despite it, the networks individually were quite widespread. And upon being merged, the expansion would have took its sweet time, because frankly speaking, network expansion in no building sand castles.
Both the companies use different technology to power their 2G networks. Sprint uses CDMA technology (like Verizon) and T-Mobile uses GSM (like AT&T). The big difference between CDMA and GSM is that CDMA phones do not have SIM cards, with the exception of newer LTE-enabled devices that need a SIM card. Nevertheless, the merged company would need to transition to one form of technology GSM being most likely, experts said so the change would take some time.
With that being said, it is obvious that the consumer is on the safer road. Although the merger posed a very appealing network, yet the thing not happening was still in huge favor of the consumer. For in this competitive jungle, every network is bound to bring out its A-Game. Meaning the consumer in the end is the winner in the whole vicious cycle.