Why The T-Mobile And Sprint Merger Is A Bad Idea


Hey everybody, David and David here from payetteforward.com
and upphone.com, and in this video, we’re going to tell you everything you need to know
about the T-Mobile / Sprint merger. So Sprint’s been lagging behind for a while now. They
have the lowest customer base and they have the worst network. T-Mobile has the third
largest customer base and they have a — they have a decent network. They said, “Hey,
what if we combine forces and then we can kind of catch up to AT&T and Verizon?” Right.
So they said, “Hey, let’s merge!” and some… they’ve had some complications with that.
I think that it can really be summed up by The Verge’s headline of their article, which
says, “The court let T-Mobile by Sprint because Sprint completely sucks.” Yep. And then later
on in the article it says, “Judge Marrero thinks Sprint is a bad company with a crap
Network run by dummies.” Yeah. So the federal courts just said this is okay. There’s still
one legal battle to overcome and that’s in California. If California blocks the merger,
they’re going to appeal to federal court, and because of the way the courts are set
up right now, Sprint and T-Mobile will probably win that case. Another hurdle right now is
that Deutsche Telekom, the parent company of T-Mobile, is trying to renegotiate the
buying price of Sprint. Right. Which may delay things a little bit further. Right. So the
only way this was going to happen, because of the antitrust and monopoly stuff, is if
there are four major wireless carriers in the US. So DISH mobile — DISH Network — DISH
mobile is going to be the next one. Apparently. Allegedly. Allegedly. So this sort of imaginary
network that DISH is going to build is going to exist, and sometime in the near future.
It doesn’t exist yet. There are some rules to this merger. T-Mobile has to allow DISH
to use their Network for three years. Now after three years, they can cap the amount
that DISH can use the network. So they have three years, what? To build out an entire
nationwide network? Because T-Mobile can just be like, “Now we’re going to cap the amount
that you’re allowed to use our Network,” which will essentially make them an inferior carrier.
Yep. I sort of suspect that DISH is going to crash and burn and that someone like Google
or Amazon is going to buy them out in five years or so. But this just doesn’t seem like
it’s gonna work out for DISH. Right. It doesn’t seem like that at all. And the judge had a
couple of quotes that I wanted to share with you guys in set. He said that, “DISH’s track
record and numerous awards for innovation and customer experience, as well as evidence
of the currently confidential and creative strategic Partnerships that DISH is planning
suggest that DISH would compete as a disruptive ‘maverick’ in the wireless markets, offering
low prices for innovative and high quality services.” Yep. It sounds like a lot of maybes.
Yeah, but here’s the thing too: T-Mobile has promised that for the next three years, they’re
not going to raise cell phone bill prices, and T-Mobile’s prices are already pretty low.
So I don’t know how DISH is going to compete in that way. Yeah. It really doesn’t make
a lot of sense. Yes, you’re thinking, ” What does this mean for me, the consumer?” Well,
is this good for T-Mobile customers? Your plan is probably not going to raise in price
for three years after that. I don’t know. We don’t know. There’s gonna be three major
carriers. I mean, that’s my prediction. I think it’s yours as well. And yes, I don’t
think that DISH Mobile is going to be able to compete as a major carrier versus Verizon,
AT&T, and now Sprint plus T-Mobile. If you have a Sprint phone and it’s CDMA locked,
you might actually have to buy a new phone to get onto T-Mobile’s network, which could
be an issue for you. One reason people are excited about this merger, though, is that
it’ll probably help 5G roll out faster. Right. T-Mobile is already sort of leading the way
with the low-band, bottom-of-the-barrel 5G coverage nationwide. That’s what they’re always
talking about. And there was a recent commercial that Verizon put out. It’s got T-Mobile’s
5G Network versus Verizon’s 4G LTE network, and Verizon’s network is twice as fast. Yeah.
So 5G — and we have a video about this, too — we’ll link to it in the description
section below; card up above — 5G consists of a whole bunch of different types of services:
high band, mid-band, low band — it’s not just one technology like 4G is. It’s a lot
more complicated, so companies are really taking advantage of that to try to sell it
to the consumer. Even though, for instance, the highest speed ones… If you notice, in
Verizon commercials, everybody’s outside because it doesn’t go inside the building. So great
for sports stadiums. Great for being outside… look how fast it is. I’m going on top of a
roof! But as soon as you go into your apartment, you can’t use it anymore. Yep. I can go on
a rant. Check out our other video about what it is. So what does this mean? Maybe you’re
an employee of Sprint or T-Mobile, and you’re thinking, “What does this merger mean for
me?” I would say start… start updating your resume. Yeah, because there are reports that
there will be layoffs. Especially if you’re a Sprint employee. Yep. I mean, now, maybe
you’re saying, “I own stock in T-Mobile or Sprint,” and you’re saying, “What does this
mean for me?” Well, your portfolio is probably doing pretty well right now because the stock
price keeps going up for those two carriers. Yeah. What do you think, David? Should I buy
Sprint right now? I wouldn’t, because they’re gonna… although we are not legally giving
stock advice, or financial advice, or any of the other things because we’re totally
not qualified, and please don’t sue us. This is not financial advice. Right. Just to be
clear. Yes. We are clueless! If you take our advice, you’re a moron! Yep. Alright. One
other thing to think about here is that John Legare — I think I’m pronouncing that right
— is the CEO of T-Mobile and kind of the face of the organization right now. He’s stepping
down and being replaced by another guy and T-Mobile guys like him. I don’t really know
much about him, but John Legare is out. So if you liked him… I didn’t know who he was
before David told me about him. So he was kind of the guy who rebranded T-Mobile has
the “Uncarrier” and kind of revolutionized what T-Mobile is doing. He said, here’s our
great new plans and changed the game in the wireless carrier space. I like T-Mobile as
a company. We met with a guy from T-Mobile at CES last year and T-Mobile is just like…
the people of seem to be approachable in a way that AT and&T Verizon people were not.
They’re kind of like, “Stay away.” Yeah. They were too big for their britches. Yeah. They
didn’t want to talk to little old us. Yeah! The guy gave us a free hat too. Free hats:
How can you hat that? Yeah. So some concerns that I have personally: Antitrust laws and
now talking about moving to three, and we’ve already seen in Canada where there are three
major carriers right now, and the cell phone bills are so bad in Canada that the major
parties — the liberal party and the new Democratic Party — part of their platforms
are like, “We’re gonna lower cell phone plan bills.” An idea! That’s how bad the problem
is, that the candidate, Justin Trudeau, is talking about capping cell phone plan bills.
People are literally tying strings to the ends of cans and running them across the street
to their neighbors. So we’re going to probably gonna see… I think we’re going to see something
similar in the U.S., because this is going to fail. Yeah. And yeah, I don’t think they
stand a chance. And I don’t think this judge thinks they stand a chance either. Yeah, I
don’t know where the money’s going, but money’s being money’s going somewhere in this deal.
Another thing that annoys me about this is that carriers aren’t even delivering reliable
4G to the entire country right now, and they’re already trying to move, you know past 4G to
5G now. But a lot of the country doesn’t even have 4G access. Yeah, and we don’t even need
5G access. They’re coming up with these crazy use cases for, you know, like we’re gonna
have drones that can talk to each other and you know, okay, there might be some need for
this, but I’m telling you 5G is not going to change the way that you use your technology
or you use your phone, because we have Wi-Fi and we have wired internet. I mean, 5G is
like this magical thing that they’re saying is going to be faster, but the technology
just does not exist. Right. There’s no point to that. I don’t know. We’re not super excited
about. Don’t even get me started. Yeah, but 5G. Yeah. And they’re charging more money
for it. Verizon has these plans where you have are 10 dollars a month more to get 5G.
There’s 5G iPhone. I guarantee you that there are people that have these unlimited plans
on Verizon that have iPhones. Yeah, they should be shot. It’s turned into a 5G video. Yeah.
Well that’s good. It’s part of — the big part of the roll-out to those that the Sprint
/ T-Mobile part of their thing is we want to roll out 5G faster, and we can do that
if we combine forces. Yeah, DISH mobile. Also they were talking about the “innovative new
strategic creative partnerships” that they’re talking about have to do with them becoming
more of a software-based network, and not like an infrastructure, so they would rely
more on Amazon and more on Google for this cloud-based stuff. But as far as I know — now
maybe I don’t know a lot, but I think you need cell phone towers — You need hardware
to be able to make this crap work. Right. So if there’s no hardware, it’s not going
to work. Yeah, I don’t understand what they’re… yeah. Yeah. So short-term for consumers, though,
the prices should stay pretty steady short-term. But after that three year window is up, I
mean, yeah, all bets are off. Yeah. Who knows what’s gonna happen with DISH Mobile there?
They’re going to — to fail. Yeah, they’re going to fail. Amazon is going to buy them,
and yeah, Google — and then we’ll have less competition. Not good. I don’t support the
merger. I don’t know what you think. I think it’s a bad idea. I give it two thumbs down.
Thanks for watching this video. Give it a thumbs up if you enjoyed. Leave a comment
down below. Tell us your thoughts about this merger or if we missed something in this video
that’s important, and don’t forget to subscribe to this channel for more great videos about
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