| |
|
The most interesting latest news on the topic: T-Mobile |
|
|
|
|
|
|
|
|
|
|
|
|
AT&T and Verizon are both trying to boost revenue with the same tactic: shared data plans. But the strategy comes with hidden consequences.
Right now, family plans allow members to share voice minutes, but carriers allot separate data plans for individual devices. That will change soon on these two major U.S. carriers, which will give plans with multiple devices one pool of data to use later this summer. The new plans are designed to make data more affordable to consumers, and could likely relieve heavy traffic congestion and spectrum strain for carriers as well. Roger's, one of Canada's major carriers, already adopted the approach and saw a boost in data usage, so AT&T and Verizon likely expect the same thing happening for them. But the strategy carries two distinct risks. 1. Data Sharing Could Lose Money The plans might not bump up costs for consumers, which means the carriers won't increase profits. Frugal families may end up paying less for the combined plan than they did with multiple data packages if they choose a small group package and don't go over the limit. If that happens, AT&T and Verizon will not benefit from the change. With AT&T and Verizon effectively killing off unlimited data, people are likely to keep an eye on their data usage to prevent caps, and if they notice the family plan could increase their fees, they may overhaul their data usage to save money. Data consumption is rising in general among consumers eager to stream movies and perform more tasks on tablets and smartphones, but awareness of data usage could also grow, curtailing revenue growth in this avenue. 2. Data Sharing May Drive Customers Away AT&T and Verizon are trying to sell this change as something consumers want, but the only way it will benefit the carriers is if it charges customers more money to generate revenue, which may breed contempt and cause defections. Both major U.S. carriers are taking a bet and assuming the payoff is worth the risk of alienating customers, but it may give smaller companies like Sprint room to edge into the competition. Sprint is still offering unlimited packages as a way to differentiate itself, but A&T and Verizon both throttle or slow data when users reach certain limits, so if the family plan strategy backfires on the two major carriers it could help Sprint gain more traction in the market. For its part, T-Mobile has disavowed family data plans. T-Mobile believes consumers don't want a "one size fits all" approach to shared family data plans, according to T-Mobile's senior vice president of marketing Andrew Sherrard. T-Mobile is instead boosting a new prepaid mobile broadband data plans for tablets, which allows customers pay in daily, weekly or monthly installments for data, starting at 300-megabytes per week for $15 and going up to 5-gigabytes per month for $50. All carriers are banking on rising data usage to fuel revenue streams in the future, but the dilemma is how best to offer the service to consumers. AT&T and Verizon are betting on shared family data plans as one way to entice more consumers to adding data to their plans, but Sprint and T-Mobile offer other approaches that could help them gain a footing with consumers turned off by the "one bucket for everyone" plans. Risky business, indeed. |
|
|
|
|
Deutsche Telekom is considering merging T-Mobile with MetroPCS to stay competitive in the wireless business, but T-Mobile will need more than spectrum to keep up with Verizon and AT&T.
A merger with MetroPCS would improve T-Mobile's spectrum situation, and give it a slight bump in customers, as well as offer the company more tools to compete in the U.S. wireless market. The added spectrum would give T-Mobile the needed bandwidth to help build out its HSPA-plus and LTE network, offering faster service necessary to lure data-hungry subscribers. But while a merger would improve T-Mobile, MetroPCS wouldn't be enough to put the company on the same level as AT&T or Verizon. Rather, a combined company would have the most direct effect on Sprint. Sprint, the country's third-place carrier, has kept T-Mobile at bay, and even dipped into MetroPCS's business, with its aggressive push in the low-cost market. Verizon and AT&T, by contrast, target the higher end. So a MetroPCS and T-Mobile merger consolidates their cheaper subscribers and adds pressure on Sprint to strengthen their services enough to keep current customers from jumping ship. Despite MetroPCS's improvements, T-Mobile will need to make strides into Verizon and AT&T's business, if it wants to survive. Should a merger help T-Mobile speed up its LTE buildout, which in turn would allow it to land the next-generation iPhone, then analysts will look back on the move as a game changer for the company. The partnership helps T-Mobile come closer to solving some of its problems, but the carrier will still lack the infrastructure, smartphone catalog and overall reach necessary to compete with the top players in the U.S. Without these major developments, slight improvements to T-Mobile would only serve to improve the carrier's credibility, rather than its ability to challenge Verizon and AT&T and impact the wireless market. If Deutsche Telekom is really looking to get T-Mobile headed in the right direction, it has to consider combining it with MetroPCS as the first step, not the finish line. The German telecom is reportedly in talks with MetroPCS, as well as several other undisclosed companies about similar possibilities. |
|
|
|
|
Deutsche Telekom is in talks to merge T-Mobile with MetroPCS, but T-Mobile will need more than spectrum to keep up with Verizon and AT&T.
A merger with MetroPCS would improve T-Mobile's spectrum situation, and give it a slight bump in customers, as well as offer the company more tools to compete in the U.S. wireless market. The added spectrum would give T-Mobile the needed bandwidth to help build out its HSPA-plus and LTE network, offering faster service necessary to lure data-hungry subscribers. But while a merger would improve T-Mobile, MetroPCS wouldn't be enough to put the company on the same level as AT&T or Verizon. Rather, a combined company would have the most direct effect on Sprint. Sprint, the country's third-place carrier, has kept T-Mobile at bay, and even dipped into MetroPCS's business, with its aggressive push in the low-cost market. Verizon and AT&T, by contrast, target the higher end. So a MetroPCS and T-Mobile merger consolidates their cheaper subscribers and adds pressure on Sprint to strengthen their services enough to keep current customers from jumping ship. Despite MetroPCS's improvements, T-Mobile will need to make strides into Verizon and AT&T's business, if it wants to survive. Should a merger help T-Mobile speed up its LTE buildout, which in turn would allow it to land the next-generation iPhone, then analysts will look back on the move as a game changer for the company. The partnership helps T-Mobile come closer to solving some of its problems, but the carrier will still lack the infrastructure, smartphone catalog and overall reach necessary to compete with the top players in the U.S. Without these major developments, slight improvements to T-Mobile would only serve to improve the carrier's credibility, rather than its ability to challenge Verizon and AT&T and impact the wireless market. If Deutsche Telekom is really looking to get T-Mobile headed in the right direction, it has to consider combining it with MetroPCS as the first step, not the finish line. The German telecom is reportedly in talks with MetroPCS, as well as several other undisclosed companies about similar possibilities. |
|
|
|
|
T-Mobile is working with Ericsson and Nokia-Siemens on a $4 billion plan to build out its LTE network, hoping to carry the iPhone 5 and keep up with competition.
The Bellevue, Wash.-based company is also expanding its HSPA-plus network, which will allow the iPhone 4S to run at 4G levels speeds. T-Mobile's network upgrade puts it in a better position to land the next-generation iPhone, as well unlocked versions of the handset. Customers can use an unlocked iPhone on the carrier's network, but the device's data speeds are much slower than if used on Verizon, AT&T or Sprint's services. An iPhone-compatible HSPA-plus network will allow the 4S to run at the fastest speed possible. The 4S's ability to run at its maximum speed at T-Mobile may draw some iPhone customers to the carrier, but the company still does not offer the device at a subsidized price. Apple has resisted officially offering the iPhone at T-Mobile, but the carrier's plans to rollout an LTE network next year may help its chances of getting the next-generation version of the device. Analysts expect Apple's next iPhone to be powered by LTE. Although there is no confirmation a new iPhone would come to T-Mobile, the carrier is at least keeping itself in the running by having its network up to date. Apple's smartphone has been the source of major booms at AT&T, Verizon and Sprint, and T-Mobile suffered mightily without it. The ability to offer a new iPhone would go a long way in helping the fourth-place carrier level the playing field with its competition. Regardless of whether Apple and T-Mobile can work out a deal to offer the next iPhone or not, the network upgrades are still a good step for the carrier. The improvements to the HSPA-plus network will make current devices even faster and LTE service means T-Mobile will be a likely landing spot for top-of-the-line Android and Windows Phone devices in the future. Still, while T-Mobile is taking the next step with its network, the company may always be behind the pack if it can't offer the iPhone. |
|
|
|
|
Nearly 30 million Americans, or one in six mobile users, experienced "bill shock," a sudden and unexpected jump in monthly cellular bills, and the Federal Communications Commission is battling to combat the problem. |
|
|
|
 Tags: AT&T, Companies, Cover Story, Featured, Lifestyle, Sprint, T-Mobile, Verizon, Reports, RootMetrics, PCWorld
|
18 April 2012 |
AT&T and Verizon are battling it out for claim to the fastest 4G service, and consumers are left scratching their heads. Which one is faster? The answer is, it doesn't matter. |
|
|
|
|
T-Mobile plans to offer $10 mobile-to-mobile unlimited calling add-on, without contract, to its mobile packages, as part of the carrier's ongoing campaign to keep up with rivals. The Bellevue, Wash.-based carrier's deal is an add-on, and mirrors similar offers from AT&T and Sprint. The move comes as T-Mobile pushes to reposition itself as a cheaper alternative to larger rivals. Carriers are scrambling to support current data packages amid the spectrum squeeze, and the phone-to-phone deal suggests companies like T-Mobile are looking for other ways to attract and appease customers, since cheaper data plans are not practical for carriers at this time. Companies likely lower the cost of traditional mobile calling to distract from lackluster data plans. T-Mobile is expanding its coverage, developing a 4G LTE network compatible with the upcoming iPhone 5, so the carrier cannot afford to slash data prices to attract customers. Originally, T-Mobile intended to focus on flexible payment plans instead of LTE expansion, but the carrier determined its best chance to remain competitive is through LTE. The carrier's rebuilding strategy, following its failed merger with AT&T, also includes a focus on higher-end smartphones. The carrier is promoting another flagship Samsung Galaxy handset, and also making strides to carry the next-generation iPhone. Customers are gravitating towards high-caliber phones, so T-Mobile's tactic shows it understands the consumer shift to high-end handsets. These high-end smartphones offer access to data-intensive apps, however, so customers on these plans may be less concerned with mobile-to-mobile deals and more preoccupied with driving down the cost of data. The company's unlimited mobile phone add-on could attract some customers or satisfy existing users in the short term, but as smartphone users consume more data but rankle at the higher costs, T-Mobile's plan may not hold lasting appeal as users' demands shift. |
|
|
|
|
T-Mobile plans to sell the Samsung Galaxy S Blaze 4G on March 21 for $150 with a two-year contract, showcasing the carrier's focus on high-end services. The Bellevue, Wash.-based company announced the Samsung Galaxy S Blaze 4G will arrive nationwide on March 28, but some stores will get an early shipment the week before. Samsung promoted the handset's 4-inch AMOLED screen, advanced GPS system and high-quality entertainment apps at CES and the Mobile World Congress, and now the phone has an official price point, starting at $150, after rebate and a two-year contract. Along with the Galaxy Blaze, T-Mobile is planning to carry the iPhone 5, signaling the company's dedication to high-end products. Carrying Apple's signature phone will boost T-Mobile's credentials, and offering the latest from rivals like Samsung lets the carrier attract Android loyalists as well. The Galaxy Blaze is set to run on T-Mobile's HSPA+ network, but the carrier announced a heavy investment into LTE, meaning the Blaze may switch over to the cutting-edge network once it launches. T-Mobile's decision to invest in LTE reflects its desire to compete with leaders like AT&T and Verizon, as the rival carriers already boast developed LTE networks and the iPhone does not support HSPA+. T-Mobile's bolstered product lineup will the carrier regain momentum lost in its failed merger with AT&T, but spectrum troubles may hinder further growth. T-Mobile walked away from the botched deal with a chunk of money to invest in spectrum, and it is choosing to concentrate on LTE. T-Mobile still lags behind giants like AT&T and Verizon in the market. To strengthen its position, T-Mobile is starting legal battles to prevent the dominant carriers from snagging too much spectrum. As T-Mobile seeks to get its LTE network off the ground, the company faces constant competition from bigger carriers making similar spectrum grabs. The Galaxy S Blaze 4G boosts T-Mobile's roster and reputation as a carrier which offers a selection of top-quality handsets, signaling an upswing in the company's fortunes. In addition to Blaze's promise, the company has its hands full juggling spectrum management and the continued acquisition of strong handsets to stay competitive. |
|
|
|
|
Carriers should stop subsidizing smartphones, a T-Mobile executive suggested, in a move that would lower the cost of service plans, and change the structure of the wireless market. The Bellevue, Wash.-based company's chief marketing officer, Cole Brodman, said phone subsidies are hurting the industry, affecting the way customers view products. "It actually distorts what devices actually cost and it causes original equipment manufacturers, carriers -- everybody to compete on different playing fields," Brodman said at the GeekWire Summit in Seattle. "And I think it is really difficult, especially from a consumer perspective, because it causes consumers to devalue completely the hardware they are using." Brodman said dual-core, multiprocessor devices, which cost close to $1,000, are "thrown away" each year because consumers receive new subsidized devices a such cheap prices. The claim, which may hold weight, won't affect the business model anytime soon. But market conditions are changing, and carriers are increasingly generating revenue from data-services over phone sales, which may shift the industry to reconsider its business model, and may trickle down to other players in the market and eventually become standard procedure. Eliminating phone subsidies may end a customer's ability to upgrade each year, but the change may also lead improved contract conditions. Since carriers charge full, up-front prices for devices, contract prices and data plans would drop in price significantly. The main concern is whether the drop in monthly cost would offset the higher price tag on unsubsidized smartphones. |
|
|
|
|
T-Mobile will abandon its plans for expanding its HSPA-plus network in favor of LTE, the carrier announced at the Mobile World Conference 2012. Previously, the fourth-place carrier said it will double its HSPA-plus 42-megabits per second network to 84 megabits. Those plans won't go through, however, as T-Mobile instead invests in a LTE network. The moves comes at time when T-Mobile, like all carriers, is attempting to best manage its spectrum resources to support the growing smartphone and tablet consumer base. Instead of developing an outdated resource like HSPA-plus, T-Mobile is choosing LTE, signaling an interest in staying current in the wireless market for the future. T-Mobile will invest $4 billion in the LTE network, setting up infrastructure for the next wave of high-speed network usage. The decision is expected to boost T-Mobile as it steadies its footing after the failed buyout from AT&T. T-Mobile acquired a settlement that included $1 billion in spectrum and $3 billion, which will help fund the LTE network. T-Mobile is looking to launch the LTE-enabled iPhone 5 when it comes out this year, a first for the carrier, and the LTE network will provide service for customers who convert to the device. LTE, combined with the iPhone 5, will likely T-Mobile attract new customers, and keep current customers interested in Apple's device. The move underscores T-Mobile's building competitive momentum, and the implementation of LTE could be a valuable investment during an industry-wide spectrum crunch. By using its infrastructure and financial resources to build a LTE network, T-Mobile positions itself to support top-of-the-line devices as they come out. A stronger LTE platform also also increases T-Mobile's value to another carrier in a merger, similar to the one proposed by AT&T. Top competitors, AT&T and Verizon, are already well on their way to success with high-speed LTE networks. Verizon plans to make all its devices LTE, while AT&T is competing by rolling out new devices that includes the first-ever LTE-powered Windows phone. In order to get the LTE network up and running, T-Mobile will use the spectrum it allocated for HSPA-plus 82-megabits per second, which will lessen the 2G network. T-Mobile is slowly phasing out 2G-compatible devices, but the move shouldn't affect existing customers. T-Mobile has lagged behind Verizon and AT&T in the market, but choosing to invest in LTE over HSPA-plus is a strategy to keep pace. If T-Mobile unrolls it fast enough, it could reclaim consumers who've branched out in the name of the latest and greatest handset technologies. |
|
|
|
|
|
|
|
|
