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03-Nov-2017 00:43

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Currently a user of their network is a customer they "own" -- they deal with that customer directly.

Now they have Google sitting between them and the user, which effectively commoditizes their service; Google could switch them out for another network down the road without the user ever knowing or caring.

But then there aren't many providers in the US that aren't dumb, so maybe the long-term threat has just been completely missed by them? What I don't get is, what's in this for Sprint and T-Mobile? They need land, licences, power, and a network to connect that tower to (assuming it isn't just a relay). In an ideal world they would be able to recruit enough users to consume each tower's capacity by 100% at peak.

Both Sprint and T-Mobile have to build physical infrasture, both to offer basic services (e.g. But because they're competing against other networks (with more users) and have to look competitive, they've over-built their network both in scope (e.g. If Sprint and T-Mobile were confident that they could recruit enough users to fill their network they likely wouldn't agree to this deal. However the likely reality is that both Sprint and T-Mobile are well over capacity in certain areas and every penny that Google can bring in by stealing uses from the big two is just further helps Sprint and T-mobile, even if they just use it to further build out their respective networks.

Instead what's going to happen, T-Mobile and Sprint both agree to offer the same performance, or focus on different regions.

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Which is an important distinction as that is their USP: cost savings by refunding unused data.

For those who don't want to read the FAQ or find the video incredibly unhelpful [1]:a. It automatically switches you to the "fastest" network available. Sounds like it prefers Wifi, then 4G LTE, and then degrades down to 3G or 2G.c. they also refund you all the unlimited data at the end of the month.d. Edit: clarified domestic talk pricing, and refunding data.

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