T-Mobile's Future: Straight from the top at Deutsche
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Kai-Uwe Ricke, chief executive of Deutsche Telekom, has ruled out making acquisitions or stepping up investments for its US mobile phone business in spite of the planned merger of rivals Sprint and Nextel.
The merger means T-Mobile USA will have half the US customers of Sprint-Nextel, Verizon Wireless or Cingular, prompting some concern that it will be unable to match its rivals' investment and marketing muscle in the long term.
However, Mr Ricke said he believed the US market, with 280m people and a penetration rate of only 60 per cent, was large enough for four players.
“It does not matter whether you ha...
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franc8200 said:...
Some of you have been wondering about this...so here is an official article:
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Kai-Uwe Ricke, chief executive of Deutsche Telekom, has ruled out making acquisitions or stepping up investments for its US mobile phone business in spite of the planned merger of rivals Sprint and Nextel.
The merger means T-Mobile USA will have half the US customers of Sprint-Nextel, Verizon Wireless or Cingular, prompting some concern that it will be unable to match its rivals' investment and marketing muscle in the long term.
However, Mr Ricke said he believed the US market, with 280m people and a penetration rate of only 60 per cent, was large enough for four players.
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mingkee said:I wouldn't expect him to announce that if Tmobile USA has plans to do what you're saying.
but the acquistion of Sumcom can fill the "HOLE" in both SC and NC
muchdrama said:mingkee said:I wouldn't expect him to announce that if Tmobile USA has plans to do what you're saying.
but the acquistion of Sumcom can fill the "HOLE" in both SC and NC
That would be a good acquisition, though--the Carolinas are a bit of a sore spot, coverage wise!
Aleq said:Yeah. I've got a good friend in South Carolina who would roam anywhere he went with his Tmobile phone (through agreements with other carriers).muchdrama said:mingkee said:I wouldn't expect him to announce that if Tmobile USA has plans to do what you're saying.
but the acquistion of Sumcom can fill the "HOLE" in both SC and NC
That would be a good acquisition, though--the Carolinas are a bit of a sore spot, coverage wise!
but his place has no Tmo native coverage
this HOLE must be filled up
mingkee said:It MUST be nothing. If Tmobile doesn't see a reason to plug it...they just won't plug it.
I'd like to refer a friend in SC
but his place has no Tmo native coverage
this HOLE must be filled up
muchdrama said:mingkee said:It MUST be nothing. If Tmobile doesn't see a reason to plug it...they just won't plug it.
I'd like to refer a friend in SC
but his place has no Tmo native coverage
this HOLE must be filled up
I don't know if this figures into it, but it may be that there's no spectrum for T-Mobile to do a buildout in the Carolinas. Perhaps cingular owns the majority of spectrum in the Carolinas. Maybe it's similar to the situation with the NYC metro and the CA/NV deal where both cingular and T-Mobile agreed to give up some spectrum in those areas as a trade so they could market in those areas. T-Mobile got CA/NV and cingular got the New York City metro. Bo...
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I've not heard of anyone speaking of a move into the carolinas, nor any news articles at work...I wonder how many people are out there that would really want us to expand there and try to gain liscenses. Of course now there's not a huge volume of calls about it as we aren't represented there. Roaming is available for free, but it doesn't help local consumers
The only thing I could think of right now would be the possible acquisition of suncom. However, I don't see T-Mobile making any purchases like that anytime soon realistically. Plus, suncom is a wholeseller of what used to be AWS's network. Cingular probably already has that as well. However, if it doubles up somewhere perhaps cingular will put a price tag on it??
franc8200 said:That was a great article, Franc. I think their "wait and see" attitude has led them down the correct path ...
Some of you have been wondering about this...so here is an official article:
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When that happens, believe me, it'll be a major problem for many carriers that jumped on the wagon too too early for 3G. I actually very much repsect DT's strategy of holding off on it for the time being. The market demand really isn't there and not too many handsets function with 3G for consumers to buy anyway.
It's true much of DT's success now depends on T-Mo, and really I mean T-Mo USA...But I'm sure that DT is working hard to find other revenue drivers.
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"The merger means T-Mobile USA will have half the US customers of Sprint-Nextel, Verizon Wireless or Cingular, prompting some concern that it will be unable to match its rivals' investment and marketing muscle in the long term."
You really didn't address any important point. T-Mo having half the customers of its rivals was a not a point...
On the contrary, if T-Mo is confident that it can grow organically, that's saying a lot more than those at AT&T Wireless who simply gave up and put themselves up for auction just to survive. That also says loads about Cingular's methodology of buying a company with many dissatisfied customers and putting it through the pains of managing a merged (bloated) enterprise. Right now, DT's strategy makes more sense than $41 billion for the Blue.
Also, it all comes down to the pure logistics: Network (more than just 1900m), size, ARPU, the U.S. marketing power, etc etc that tMobile will NOT have without looking up to Mommy & Daddy for their allowance. That will get old quite quickly, as trying to survive will become very costly; being snatched up by a provider that wants GSM is only to become a more viable likely option in the near future, as all the bragging in the world about hitting 14m, then 17m year end customers does not compare to what has leap-frogged into the game of having 30m-40m-50m customers w...
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Again, T-Mobile USA is not DT's only concern. We are one of several subsidiaries collectively housing over 90 million customers worldwide. I guarentee you cingular can't say that merger or not.
while cingular is competing with verizon, and "sprint-nextel", Dt is competing with Orange Telekom, Vodafone, and other major international contendors.
TMo USA is also the newest to the DT family, and it will take time ( more than just one or two years) to build us up to where the rest of the mobile networks under DT are.
The U.S. market is too unstable right now to make any major moves. I agree whole heartidly the "sit back and wait" approach has paid off for us, and will cont...
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T-Mo isn't just about the US. DT isn't just about the US. The US is a tiny spec in the world in it's a only a PORTION of what DT and T-Mo is all about.
Another guy said this before me already: T-Mo, on a global scale, is far greater in strength and scope than rival in the US.
Both T-Mo and Vodafone are global service providers with millions of customers around the world; the US is just one! T-Mo is more than twice as large than Cingular/ATT or Verizon. Don't you get that?
T-Mo doesn't need to ask Mom and Dad for money. As long as subsidiaries are well managed and profitable, they don't need con...
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franc8200 said:...
I'm not trying to insult you by calling you an "idiot merely pointing out that you're too prejudice without taking ample time to think...
T-Mo isn't just about the US. DT isn't just about the US. The US is a tiny spec in the world in it's a only a PORTION of what DT and T-Mo is all about.
Another guy said this before me already: T-Mo, on a global scale, is far greater in strength and scope than rival in the US.
Both T-Mo and Vodafone are global service providers with millions of customers around the world; the US is just one! T-Mo is more than twice as large than Cingular/ATT or Verizon. Don't you get that?
T-Mo doesn't need to ask Mom and Dad for money. As long as subsidiaries are well managed
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bizkitsngravy said:...franc8200 said:
I'm not trying to insult you by calling you an "idiot merely pointing out that you're too prejudice without taking ample time to think...
T-Mo isn't just about the US. DT isn't just about the US. The US is a tiny spec in the world in it's a only a PORTION of what DT and T-Mo is all about.
Another guy said this before me already: T-Mo, on a global scale, is far greater in strength and scope than rival in the US.
Both T-Mo and Vodafone are global service providers with millions of customers around the world; the US is just one! T-Mo is more than twice as large than Cingular/ATT or Verizon. Don't you get that?
T-Mo doesn't need to ask Mom and Dad for money.
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muchdrama said:...bizkitsngravy said:franc8200 said:
I'm not trying to insult you by calling you an "idiot merely pointing out that you're too prejudice without taking ample time to think...
T-Mo isn't just about the US. DT isn't just about the US. The US is a tiny spec in the world in it's a only a PORTION of what DT and T-Mo is all about.
Another guy said this before me already: T-Mo, on a global scale, is far greater in strength and scope than rival in the US.
Both T-Mo and Vodafone are global service providers with millions of customers around the world; the US is just one! T-Mo is more than twice as large than Cingular/ATT or Verizon. Don't you get that?
T-Mo doesn't
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BluetoOrange22 said:So Cingular polled all 20-something million ATTWS customers and found out that 90% of them enjoy the fact that they've been absorbed by Cingular? C'mon, give us a break. We're not that stupid.
Bloated by no means. The concept of becoming part of the largest company, network, and picking up the prized *Rollover* has been well recieved by 90% of our Blue customers.
Tmobile is growing at a pace that will keep it viable for years to come.
BluetoOrange22 said:Yeah, but the article also points out that Tmobile's intention has NEVER been to compete with its competition in an equal manner.
Of course he's gonna speculate with all positive, forward looking statements...he's the CEO!!! But as it says above, along with the rest of industry analysts:
"The merger means T-Mobile USA will have half the US customers of Sprint-Nextel, Verizon Wireless or Cingular, prompting some concern that it will be unable to match its rivals' investment and marketing muscle in the long term."
franc8200 said:
The merger means T-Mobile USA will have half the US customers of Sprint-Nextel, Verizon Wireless or Cingular, prompting some concern that it will be unable to match its rivals' investment and marketing muscle in the long term.
That IS rather a problem... the primary reason that the mergers went through is that nearly everyone, even the regulators, saw that in the US there were too many networks and not enough investment in each one. T-Mobile ends up as odd man out, and risks being seen as a niche player, the 'low-cost urban-only/mainly' provider.
However, Mr Ricke said he believed the US market, with 280m people and a pe...
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