08-03-2016, 02:55 PM
(08-03-2016, 12:47 PM)shadow_walker Wrote: [ -> ]This discussion leads me thinking if the incumbents start a price war now, it might in fact increase the deterrence for the 4th Telco wannabe. They might be better off doing an aggressive price war than to wait for the entrance of a 4th Telco. Nonetheless, their performance will still suffer albeit better off than if the 4th Telco enters.
(not vested)
I reckon, it is rational for incumbents to kill the new competitor at birth. They will do it, at the spectrum general bidding, base station leasing, and tiered plans to deter the new mobile operator, or more specifically, the new mobile operator potential investors.
The upgraded tiered plan, isn't very costly to incumbents, after the upgraded to A-LTE, with much lower cost per MB. The "upgrade" should be in the road-map, but pushed earlier, IMO.