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www.JayBartels.com The pre-paid cell phone industry is booming and many people are looking to claim their share of the market. This is not just a trend but will eventually replace contract driven phone plans according to industry leaders. The key is to be able to accommodate as many cell phone users as possible and not be forced to work with a limited market. So what's the market share of each of the major carriers?Which phones work with each carrier? T-Mobile's customer base is about 35 million. Sprint's is 50 million. AT&T and Verizon (NYSE VZ) have about double the Sprint count. AT&T Wireless and Verizon Wireless have rich parents, each of which can draw money from their dwindling but profitable landline businesses, as well as wireless subscriber units that also have high margins. Each can afford to pay for aggressive infrastructure expansion of 4G ultrafast wireless networks. Each easily can afford to pay Apple (NASDAQ: AAPL), the most important chess piece in market share battles, the subsidies it demands for the iPhone. T-Mobile has just announced it will cut 900 positions. The cuts will continue. DT is not likely to want to support a business that it must already know has no future. Sprint and T-Mobile are faced with the difficult reality that each is too small and has no ready chance to grow. The technologies of the two companies are not entirely, or even partially, compatible. This makes a merger between them unlikely. Either could marry with smaller MetroPCS <b>...</b> |
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