Analysts say Sprint promos won’t affect T-Mobile, also weigh in on 600MHz auction

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Sprint has been running a half-off switcher promo since November that offers to cut in half the rate plans of folks that switch to Sprint from competing carriers. The deal has been extended a couple of times now because Sprint says that it’s gotten an “overwhelming response,” but some analysts don’t think that the deal will have any effect on T-Mobile.

In a recent note regarding T-Mobile’s upcoming results announcement, Barclays analyst Amir Rozwadowski says that he doesn’t think that Sprint’s promotion will have any notable effect on T-Mobile’s numbers. “While Sprint has extended its ’50 percent off’ campaign, we do not expect to see a material impact to T-Mobile’s porting levels,” Rozwadowski said.

Analysts at New Street Research also say that Sprint’s promos are unlikely to have a big impact on T-Mobile. The group says that while T-Mobile shares have fallen around 10 percent this year due to concerns that Sprint’s promos could affect T-Mobile, but that T-Mo’s Q4 2015 earnings should get investors to focus on Magenta’s growth and “diminish recent concerns regarding price competition from Sprint.”

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New Street Research also touched on the upcoming 600MHz spectrum auction. The analysts believe that the participation of cable companies “has favorable implications for TMUS over the immediate to long term.”

Recon Analytics analyst Roger Entner also shared his opinion on how the auction will go for T-Mobile, suggesting that participation from Comcast and the Social Capital investment firm could end up forcing T-Mobile to spend more for spectrum than originally anticipated. Social Capital CEO Chamath Palihapitiya previously said that he plans to raise between $4 billion and $10 billion to spend at the 600MHz auction to build a new wireless network.

T-Mobile has said that it plans to go hard in the 600MHz auction. CFO Braxton Carter said last year that T-Mo plans on getting 600MHz airwaves to fill in the parts of the US that don’t have 700MHz auction as well as metro areas with 700MHz coverage that need to be bolstered. At the time, Carter said that he didn’t expect T-Mobile to pay more than $1 billion or $1.5 billion to get what it wants, but Entner seems to think that that number could end up being higher. That said, T-Mobile could spend up to $10 billion in the auction if necessary, so T-Mo will have access to more money to acquire the important 600MHz spectrum that it wants.

Sources: FierceWireless, Reuters

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  • AS118

    If Sprint had a test-drive like T-mobile does, I’d be more interested in them, but the last time I had them, the coverage in my area was so bad, my whole family swung the other way and went with Verizon, even though we had to pay more.

    I will say this, Sprint’s pricing plans have always been more than reasonable, but that’s only a factor if their coverage is good where you live/work/travel.

    Edit: I have T-mobile now, and where I go, it’s pretty much as good as Verizon. Close enough that I don’t notice.

    • TBN27

      To touch on the subject of switching to sprint, they may cut your costs in half but their plans don’t offer goods like mobile without borders, free tethering allotment of you have unlimited, free international data roaming and texting. So it can be a waste especially if one uses those features that sprint doesn’t offer.

      • Kaulana1989

        sprint offer the same benefits as T-Mobile check it out

        • Mike

          I have T-Mobile as a personal phone and Sprint as a company phone. I can tell you Sprint does have 3G in rural areas where T-Mobile has Edge. In the city or metro areas T-Mobile is the better service faster LTE and better coverage. Sprint LTE is very spotty I noticed the data will go from LTE to 3G to often in the same areas T-Mobile has a steady LTE signal.

        • JLV90

          Not all the same benefits, some are better most are worse.

          Wifi calling cheaper router with smaller range.Their signal booster doesn’t do LTE and can negatively affect people in the same location boosting the signal of very slow 3G. Legal tethering is limited to 3 GB on unlimited plans. They get 1 GB high speed in some latin american countries, but you get 64 kbps speeds with their roaming partners in other countries compared to T-mobiles native network limits in Canada and Mexico and 128 kbps in other countries.

      • Kaulana1989

        i love T-mobile I saved $336 a year from switching from Sprint plus they gave me a 2 free Wi-Fi routers a 4G LTE cellspot that connects to your Wi-Fi router gives you 5 bars of indoor coverage LTE mini cell tower Plus 650 in credit to my account I don’t have to pay my bill for 5 or 6 months now

      • Daniel Marchand

        I compared the 2 and between my grandfathered plan and the T-Mobile perks (call free to Europe (add-on), free 128kbps roaming to Europe, tethering, binge on, music freedom, etc), and let’s not forget the half off deal is a limited time bait to switch you it goes up after a year if i remember right… And you have to lease new phones….. No way I’m switching.

    • Fabian Cortez

      At this point, Sprint offers no real competition to T-Mobile.

      But what Sprint provides right now is some slight form of price competition. This is good as it keeps T-Mobile in line. Also, AT&T offering unlimited data again gave us the wonderful $150 unlimited promotion.

  • mingkee

    Sprint’s half-off is good only on the latest plans not grandfathered ones.

    • JLV90

      and not valid on unlimited plans

  • shawn

    sprint is better then T-Mobile in many ways you people are getting fooled by T-Mobile sprint has more spectrum and by 2017 they are going to buy T-Mobile I promise you .