2011 wasn’t exactly the best year for T-Mobile and the earnings, as well as number of customers, are enough evidence the competition got the best of this company. However, T-Mobile has another thing coming, as it decided to shift things a little bit to become once again attractive to its customers. The solution was a new strategy based on LTE which would be enough to recover the lost clients.
After the much sought after AT&T and T-Mobile deal failed, Deutsche Telekom had to figure something out to avoid losing any more money. And since the break up deal with AT&T included a nice gain, such as a large package of AWS mobile spectrum, Deutsche Telekom decided to give T-Mobile a chance to shine once again.
As a result, starting next year, T-Mobile will launch its own Long Term Evolution (LTE) services and make its first steps in a market run by titans of the telecom market. Basically, LTE might be T-Mobile’s only solution to recover the staggering loss of 802,000 customers in last year’s final quarter.
However there are still some things that might ruin Deutsche Telekom’s dreams of success in the U.S. market. First of all, T-Mobile is the only carrier that doesn’t have the iPhone, aspect which should definitely be taken into account since consumers are big fans of Apple’s smartphone.
Philip Humm, CEO and President of T-Mobile USA, explained that “not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011”. The “$1.4 billion investment in its network modernization initiative” is expected “to get the business back to growth”.
Secondly, before T-Mobile will actually get to launch its new strategy, AT&T first has to hand down the AWS mobile spectrum. As stated in the failed merger’s contract, in case of a break up T-Mobile will receive from AT&T a significant package of AWS mobile spectrum in 128 Cellular Market Areas (CMA). And a dozen of the total CMA to be received are part of the Top 20 most productive ones.
When the merger with AT&T failed, Tom Sugrue, senior vice president for government affairs with T-Mobile, stated: “This additional spectrum will help meet the growing demand for wireless broadband services. We hope the FCC will move swiftly to approve the license assignments”.