Monday, June 9, 2014

Is T-Mobile's SoftBank Merger a Good Move for Consumers?

Rumor has it that T-Mobile will be changing its name to SoftBank after an acquisition by Sprint's mother company.  This poses a number of problems and, at the same time offers some solutions.  What is best for the customer?

(modified from original, credit: times blog)
I sincerely believe that T-Mobile does not need to merge with anyone at this point.  Their momentum and clearly communicated path is enough to help them rise to reach the top of its market.  It will take time, more UNcarrier moves, but  is already on the right path.

As for the name change, I do not like it.  I would much prefer T-Mobile, but at least they are not threatening to change it to Sprint.  For the layman, T-Mobile has resonance in terms of VALUE.  It would be foolish to change it to a new, unknown name.  The term BANK evokes quite a sore feeling with Americans after what occurred the last decade.  SoftBank can BANK on the name T-Mobile for what it stands for.

IF, however, the merger occurs, this will make T-Mobile's strategy sluggish as its CEO will have to respond to what is currently the establishment, a group of people with different ideologies.  I hope that if they do come together, John Legere will be given free reign to make the changes that will continue to revolutionize the industry, and use SoftBank's deeper pockets to expand their network to address the PRIMARY PAIN POINT customers have: COVERAGE.  

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