December 15, 2014
The Big Four cell phone mobile carriers from the United State have major financial problems at the end of this year, as their value dropped almost dramatically in only one month, from November to our present day. All of this mostly because their continue pursuit for getting new customers which mean a lot of investment. So, the four giants, AT&T, T-Mobile, Verizon and Sprint lost in only a few days a total sum of 45 billion dollars which represents a giant fortune! Most problems seem to be on Sprint’s side, as their value went down with 18 percent.
But the other three also have reasons to concern, as their value dropped between 9 percent (AT&T) and 11 percent (T-Mobile) with Verizon having lost 10 percent of its initial value. Sprint looks to be the most affected because they tried to attract customers from other networks by cutting in half their bill, but still keeping the same services. The first warning came from Verizon representatives which warned that tough competition won’t do any good, but will definitely affect profits. And it looks like that they were right at that moment.
Because the perspectives aren’t too bright for the following year and the gap has a great potential to enlarge, all four big carriers might try to invest in fighting their competition and do whatever necessary to keep the customers that they already have. Maybe this dispute, according to some analysts, can end when the prices of all four will be regularized or when one of them will start to think and to act in the direction of making profit and concentrate less on the policy of cutting prices.