The war of price cuts and winning the hearts of customers between Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) is getting all heated up. Last week, Sprint Corporation (NYSE:S) announced its $60 unlimited data plan that was a great step by the company’s new CEO. But how could T-Mobile US Inc (NYSE:TMUS) let this move go unnoticed. Today, T-Mobile US Inc (NYSE:TMUS) has announced that it is offering an additional two gigabytes of data, talk and text for $45 per month in its “Simple Starter” data plan. Discussing this price cut war between the two companies in a program on Bloomberg, Mediatech Capital Partners Managing Partner Porter Bibb, and New Street Research Analyst Jonathan Chaplin said that this ongoing tension between the two companies is really great for consumers.
Bibb said that Sprint Corporation (NYSE:S) is losing this battle of price because it is in a dire need of huge capital and currently, it is losing its customers. He predicted that Sprint Corporation (NYSE:S) will be back to fourth rank in the list of data providers by the end of this year or early next year. He also thinks that T-Mobile US Inc (NYSE:TMUS) and Sprint Corporation (NYSE:S) will have to expand their services and quality in order to win customers rather than cutting the prices
“This is a battle of the disruptors, right now, between Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) and investors probably are going to be on the short end of the stick but it’s a great situation for consumers because they both have advocated price cutting and I agree with Mr. Legere’s idea of disillusioning price cut that Sprint Corporation (NYSE:S) came out with,” said Bibb.
Jonathan Chaplin said that T-Mobile US Inc (NYSE:TMUS)’s CEO is playing great moves for the company and has created a lot of new customers and profits. He added that Verizon and AT&T are losing their customers as well and the competition is not just limited for the third position in the wireless market. However, he thinks that price cut is the only option remaining for the companies to make a quick space in the market.
Billionaire investor, Leon Cooperman is one of the biggest shareholders of Sprint Corporation (NYSE:S), having approximately 39.7 million shares of the company.
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