CEO Humm on the iPhone, their very own LTE network, and the new Vibrant 4G
At an investors meeting in New York, T-Mobile USA CEO Philipp Humm and Deutsche Telekom CEO Rene Obermann discussed the company’s future. Trailing in 4th place behind Verizon, AT&T, and Sprint Nextel, T-Mobile’s sales growth has slowed in recent years and the competition is only getting tougher, with the ever-expanding iPhone and burgeoning of rival 4G networks.
To combat these new challenges and get the company back on its feet, Humm announced a series of bold strategies aiming to bolster sales growth by $3 billion in 2014. In the short term, T-Mobile hopes to attract Americans about to join the smartphone craze, an estimated 150 million people. With $10 data plans and $100 phones, the company will offer some of the nation’s most competitive smartphone packages.
T-Mobile missed the iPhone boat and it’s costing them. Humm explained the company’s seen a 10% churn rate, or loss of business to rival providers, purely because of Apple’s tantalizing device. Because of technological inequalities, offering the iPhone is just not in the cards for T-Mobile, at least not for a while. Humm said the company will focus on Android devices, attempting to curb the flow of business to iPhone-friendly providers.
Speaking of Android, T-Mobile also announced that the long-awaited Samsung Vibrant update to Android 2.2 begins rollout January 21st. Humm explained the holdup was purely technical and T-Mobile has to adjust to a clientele of smartphone owners who expect regular upgrades. They also officially unveiled the Vibrant 4G, T-Mobile’s third HSPA+ smartphone and expected to reach speeds of up to 21Mbps, unmatched by the company’s current devices. T-Mobile released no details or specs, but those will surely surface at the Mobile World Congress in mid-February.
To compete with the new 4G networks on the block, T-Mobile plans to soup up their capacity to 42Mbps on HSPA+ by the second half of this year, although it’s uncertain whether devices able to harness those speeds will be as readily available. But in the long run, T-Mobile will need to switch to true 4G technology. Although they brand their existing HSPA+ network as 4G, it’s not universally accepted as such. Humm explained that they’re favoring LTE because the transition will be easier.
T-Mobile plans on selling non-essential assets, like cell towers, to raise capital for an LTE network. … Read the rest












