osewalrus (osewalrus) wrote,
osewalrus
osewalrus

T-Mobile Not Cutting Prices To Avoid Proving DoJ Case That They Help Competition By Cutting Prices

According to this article, T-Mobile will loose customers because it is abandoning its strategy of aggressive price cutting in the wake of AT&T and VZ raising prices. Why? Because the Department of Justice alleges that T-Mobile is an aggressive cost cutter, and that it's elimination from the marketplace would be bad for consumers because AT&T and Verizon would then be free to raise prices unconstrained by fear of T-Mobile cutting costs.

Of course, T-Mobile's actions will increase customer loss. But T-Mobile wants that to happen, since it supports AT&T's argument that T-Mobile is a dying company.

Oddly, I keep thinking of this scene from Blazing Saddles. What is amazing to me is how closely regulators in D.C. often resembles the gullible townsfolk.

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