Kagan: T-Mobile US faces growing problems of their own creation

T-Mobile must have thought once they won merger approval with Sprint a year ago, all their problems would be over, and they could do anything they wanted. Not so. The Department of Justice says they now have “grave concerns” about T-Mobile and their plans to shut down their CDMA network which will hurt Dish, a brand-new wireless competitor.

Both T-Mobile and Dish are on different sides of this issue. So, let’s take a closer look at who is right. The answer is not as clear cut as you may think. However, government officials like the DoJ and California are starting to raise some difficult questions.

Remember, there is a right way and a wrong way to do things. Why T-Mobile simply cannot simply do things the right way, is a real question an increasing number of people are asking.

DoJ has “grave concerns” with T-Mobile shut down of CDMA hurting Dish

The CDMA shutdown by T-Mobile is a slap in the face to Dish, especially after Dish came to their rescue and helped them complete the merger with Sprint.

In fact, without Dish, I am not sure the Sprint merger would even have been approved.

T-Mobile should be thankful and in debt to Dish. They should be trying to help Dish. Instead, T-Mobile is hurting Dish by shutting down this network.

Shutting down CDMA was always part of the grand plan, but according to the DoJ, this should not be happening yet. By doing this now, it is hurting their competitor, Dish, who they should be helping.

I have to say that I really want to get behind T-Mobile and pat them on the back for a job well done. In fact, I have done so during this last year.

However, these recent actions and news from the DoJ and now California make that very difficult.

T-Mobile is facing a growing consensus against their actions. Something they do not need.

Dish came to T-Mobile rescue during merger with Sprint

The right thing would be for T-Mobile to nurture Dish and help them move into wireless. After all, it was T-Mobile that sounded like that’s what they would do, in order to get their Sprint merger approved.

So, what’s the problem today?

It looks obvious that T-Mobile does not want to do anything to encourage the Dish move into wireless. What a turn-around from last year during the merger battle.

T-Mobile should help Dish become wireless competitor

To tell you the truth, I think this behavior could hurt T-Mobile. These actions are catching the attention of a growing number of regulators like California and the DoJ who says they now have grave concerns about the nationwide shutdown of CDMA and how it will leave a substantial portion of Boost customers with no service.

If I were senior management at T-Mobile, I would think very carefully about their next move.

It’s not too late for them to wake up and start doing things the right way and helping Dish into wireless as a real competitor.

Dish and AT&T struck MVNO wireless resale agreement

Dish has seen the writing on the wall, and they recognize T-Mobile is not looking out for their best interest. So, they are moving away from T-Mobile and have struck a deal with AT&T to be an MVNO reseller of their network.

This now opens a new door for both AT&T and Dish to develop a strong, long-term, and mutually beneficial relationship.

This business is one more thing that T-Mobile is losing with their behavior. They say it’s no big deal. However, if Dish becomes a real competitor, that is a big loss of business for T-Mobile.

T-Mobile does not think they are doing anything wrong

The thing is T-Mobile does not think they are doing anything wrong. They say that they are just being competitive. They say Dish is the problem with their slow move into wireless.

That argument does have some validity. Dish is taking longer than anyone expected to move into wireless. They have a focus on being both a network, and an MVNO reseller. The network will take time. The MVNO reseller can start immediately.

As Dish struggles to enter wireless as a competitor, my next question is why is T-Mobile cutting them off at the knees?

Remember, whatever problems T-Mobile faces going forward are of their own creation.

So, what will happen next? That’s the big question we are all pondering. Let’s hope T-Mobile finally does the right thing. Stay tuned.

Comments are closed.