Click to Skip Ad
Closing in...
  1. Prime Day Fire TV Deals
    12:56 Deals

    Amazon’s early Prime Day smart TV deals are unreal, including a 70″ 4K Fire TV…

  2. Prime Day Deals
    10:03 Deals

    Prime Day starts Monday – but these amazing Prime Day deals start now

  3. Prime Day Deals
    09:43 Deals

    These early Prime Day deals have prices so low, it’s like Amazon made a mistake

  4. Amazon Deals
    10:30 Deals

    Today’s top deals: Free $15 Amazon credit, $530 70″ TV, $4 smart plugs, $8 sma…

  5. Best Smart Home Devices 2021
    08:45 Deals

    10 smart home devices on Amazon you’ll wonder how you ever lived without




Wireless companies are making more money, which is bad news for the rest of us

July 15th, 2018 at 2:11 PM
Best cell plan 2018

The recent announcement of T-Mobile and Sprint’s merger has everyone thinking a little more than usual about wireless competition. The US has enjoyed a fierce battle between carriers for the last five years, which has seen prices plummet and new features like unlimited plans made widely (and cheaply) accessible.

But according to a handful of wireless analyst reports seen by Fierce Wireless, it’s time for carriers and not consumers to reap the rewards for a change. Analysts note that pricing has “stabilized,” fees are going up in some cases, and competition is down — all good news for investors, but bad news for the customers whose higher bills are fueling those extra profits.

“This will mark the first full quarter the industry laps the ‘unlimited’ price wars of 2017, and several positive data points have sweetened the narrative for US Wireless in recent periods,” Deutsche Bank Research analysts told investors in a note. “From a high level, pricing has stabilized (we have actually seen several fee increases in recent months), competitive intensity has moderated (churn is near all-time lows for VZ/T/TMUS), and the industry’s two biggest disruptors (TMUS/S) have announced plans to merge. In addition, Cable MVNO pricing has not been overly aggressive.”

Both Deutsche Bank and Jefferies analysts see an improvement in margins in the coming set of financial results — margins being the difference between what a carrier charges for things and what it costs them — and without any significant reduction in costs, those margin improvements will inevitably be driven by fewer device promotions and higher costs for plans.

It has been a notably long time since T-Mobile hosted a major “Uncarrier” event, which in the past have been the spark for competition between the carriers. Previous Uncarrier events included the debut of unlimited data plans, or offers for free Netflix, features that other carriers have mostly been forced to match.




Popular News