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T-Mobile becoming stronger competitor from more spectrum and Moore's Law declining costs

Broadband competition is increasing! Just listen to what T-Mobile USA President Robert Dotson has to say as quoted in Communications Daily today:

  • "We are now at parity with competitors" he said because they nearly doubled their spectrum holdings in the U.S.
  • Dotson also believes T-Mobile has a new competitive advantage because his $4.2b acquisition of spectrum was at bargain prices, roughly 39% cheaper per pop (potential user) than the price paid previously for this type of spectrum.  
  • Dotson also highllighted the benefit of declining costs to enhancing T-Mobile's competitiveness: "The next generation of 3G handset will cost carriers like T-Mobile anywhere from $150 to $300 on average versus the $250 to $500 our competitors are paying today. The same can be said with regard to 3G infrastructure."

Not only is wireless broadband becoming increasingly, rapidly, and directly competition to DSL and Cable, but wireless broadband competition itself is getting increasingly competitive!

Those who fear and claim this market is a duopoly trending to monopoly long term are blind to the facts and dynamics of this competitive marketplace.


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