Future Goals of the Third Largest Mobile Operator T-Mobile
T-Mobile is the third largest mobile carrier that is continuously disrupting the industry through their Un-Carrier initiatives. T-Mobile serves up to about 70 million customers and is known to undercut the competitions prices. This organization is focused on the future. They are focused around their customers and they do not plan on stopping no It is no wonder that when they look towards the future they don’t plan on stopping there. Looking back is important because there is so much to learn. But it is more essential to look forward into the future to see the limitless opportunities to grow. T-Mobile has big plans for the future like purchasing and merging with Sprint, to implementing 5G technologies, and looking into non-cellular connections. T-Mobile plans to reach more customers and broaden their service to move forward as a company in their future plans into 2019.
If being the third largest mobile carrier in the United States wasn’t an accomplishment of its own T-Mobile doesn’t plan on stopping there. This past year alone T-Mobile purchased Metro PCS to create Metro by T-Mobile. In 2019, T-Mobile plans to buy Sprint and merge to become one mega cellular company. An article on Reuters stated “The agreement capped four years of on-and-off talks between the third and fourth largest U.S. wireless carriers, setting the stage for the creation of a company with 127 million customers that will be a more formidable competitor to the top two wireless players, Verizon Communications Inc. (VZ.N) and AT&T Inc. (T.N).” This merger would make T-Mobile the largest wireless carrier in the United States and take out its competitors.
T-Mobile plans to have Sprint purchased by 2019 but it will be awhile before the merger is fully complete. With so many customers on the Sprint network the merger would require quite some time to have a large amount of customers transfer and switch to T-Mobile plans. A recent article in android authority confirmed that the merger would take time to complete by stating that, “The deal wouldn’t even be finalized until 2019, and T-Mobile estimates it would take about three years to migrate subscribers from the Sprint network to the T-Mobile network.” With adding about 58 million more people onto a network and switching their previous plans there is no question that this would require a great amount of time to complete.
With this merger of this size there has to be careful consideration to be done by the government on whether or not to approve or decline the merger. The reasoning behind this is because with a network of 128 million customers if this deal goes through there is a possibility of it turning into a monopoly which is illegal. An article on Bloomberg stated, “ Almost four years ago, a previous attempt to unite Sprint and T-Mobile was rejected by the U.S. Department of Justice and the Federal Communications Commission. At the time, both agencies said that competition could be harmed if the number of national carriers shrank from four to three.” However things have changed in the past four years, more TV cable companies are trying to enter the wireless mobile industry thus creating a more competitive environment without the risk of anything turning into a monopoly. This merger would bring a great deal of benefits not only to T-Mobile and Sprint but as well as the millions of customers it will have an affect on.
A huge benefit of T-Mobile and Sprint merging is that it will allow T-Mobile to expand the company into the Cable tv industry. The increased number of customers available to them will allow them to integrate into the industry quicker and with more success. Right now Comcast is the largest cable provider and Charter Communications is the second largest, according Mike Sievert, chief operating officer of T-Mobile. Mike Sievert goes on to state how a merger could lead to a service that could be used for 52 percent of zip codes and have close to nearly 10 million subscribers. This is forecasted to happen by 2024. AT*T and Verizon have also professed interest into competing with cable.
T-Mobile simply can’t compete as well as it could with the merger. The increased resources and licenses that T-Mobile could have with merger would greatly improve the performance of their 5G network. Neville Ray, T-Mobile’s chief technology officer, states how the merger could allow the average nationwide speed to be 451 Mbps by 2024. He compared this to being able to download a movie in 1 minute. However, Neville Ray goes on to state how without the merger, Sprint’s average speed will be 115 Mbps, while T-mobile’s even worse at 100 Mbps. Mike Sievert gave a small hint that the cost of the company’s services will be much cheaper compared to other cable companies. However, these figure are not found in the public records of T-Mobile’s filings. This lack of sharing the information may not sit well with the FCC in approving the merger because companies haven’t always followed through with the promises made during a merge.
T-Mobile biggest weakness right now is that iit can’t compete at the same scale as AT&T and Verizon. This weakness will become a strength with the merger of Sprint. By combining customers with Sprint, T-Mobile will have a chance to match the profit margins of Verizon and AT&T. Altice and Dish have asked for the merger not to be approved because they think it will be bad for competition. They have asked for certain conditions be put on the merger so that competition is balanced. T-Mobile and Sprint have replied by stating that the merger will lead to healthy competition for the consumer’s attention. It seems to be that companies fear the potential of business that this merger can cause.
The race to become the world’s first 5G provider is on, and other major powers like China have been a competitor to America. Fifth generation technology which is also known as 5G has many new and exciting benefits that can be offered to people. Those being; the ability to download entire movies in seconds and speed up processes of our wireless systems that would normally take several minutes to an hour. Besides having a number of benefits for consumers, there are barriers that each country must get across in order to be able to be the new 5G leader.
As mentioned by Arthur Herman of Forbes Magazine, “The rollout of 5G also demands billions of dollars to install the fiber-optic networks needed for these high-capacity systems, and billions more to operate them.”(Herman, 2018) This will be one of the barriers that the U.S will need to overcome. The second barrier is to not only lead in 5G but to dominate over China. China has plans of controlling 90 percent of the world’s most advanced technological systems, 5G is also part of their plan according to Forbes. A story that this article mentions is that a tech company in California called Supermicro found out that China has also been known of using their subcontractors to install back doors to motherboards of hardware systems. These “backdoors” are a point of access to a program, application or security system. They are used as a way to bypass any security that is set in place. This leads us to believe that if the country has the capability of being malicious in this way, how would they behave if they do dominate the future of 5G.
American Technological companies and mobile and wireless carriers like T-Mobile should understand that the race is not only competitive amongst other US firms but across borders as well. China has already begun to build and create costly as mentioned, fiber-optic networks and their own version of 5G to sell to other nations for bargain prices. The IT company that they use is called “Huawei”; and they are also associated with China’s military and intelligence agencies. China has already penetrated in to a few US allies, one of them being Italy, and soon they can work their way in to Britain and Germany as well. This poses a huge risk of control in other countries. Once fiber optic networks are installed in those countries, information that is passed through them can be controlled by the communist country on the other end. They would be able to control where that information goes and to whom it goes to.
With the risks mentioned above, there will be threats then posed to other markets as well. Herman mentions the possibility of China’s agenda being forced through the establishment and sale of their fiber optics network, Huawei. If other countries don’t push the establishment of their own 5G network then the only other option remaining would be to opt for what China is offering. The US and its allies need to figure out a way that they can extend their frequency for signal(called a bandwidth) for domestically owned companies like T-Mobile, Verizon, etc. Extending bandwidth would make prices for consumers affordable and would allow them to not being forced to rely on China’s developments which pose larger threats.
T-mobile is focused on working toward a Fifth Generation or 5G network, and being a leader for it. Whichever nation can introduce their 5G network and do it the best will have great power when it comes to ruling that market. T-Mobile took over Metro PCS about 5 years ago. Introducing 5G to Metro PCS is one of the biggest improvements for the company. “Carriers have been racing to be the first to deploy a 5G wireless network, in order to prepare infrastructure for self-driving cars and phones that’ll be able to support 5G in the future. But most of it appears to be marketing-speak, like how AT&T once used the term “5G Evolution”to just describe faster 4G LTE speeds” (Lee, 2018).
Verizon did introduce 5G for home internet to its customers first but not at the level that T-Mobile is working on. Racing to be the first is not what T-Mobile wants. CEO John Legere seemed careless when he heard Verizon was the first to debut the next generation of speed. As we can see, T-Mobile wants to create something that is realistic and the best. AT&T is still behind even though they were the first to suggest 5G. Customers want to see things get done, rather than suggestions that mean nothing. T-Mobile is working on debuting a real 5G experience.
T-Mobile and it’s idea of 5G not only affects smartphone users but other industries as well. With 5G, things that were impossible are now possible. “Ubiquitous high-speed 5G service and Internet of Things (“IoT”) capabilities will ignite innovation across industries and create the conditions for U.S. firms and innovators to lead the globe in the 5G era” – not only will 5G help T-Mobile grow, but it will help other companies jump into 5G broadband in order to grow into the new era” (T-Mobile, 2018). This can affect industries in a positive way. Through research I have found that 5G spectrum is able to created headphones that’ll translate a language you are not familiar with, to something you understand. This can help companies do business with other countries and expand their network.
According to T-Mobile NewsRoom, “5G is expected to create 3 million new U.S. jobs and $500 billion in economic growth by 2024…” (2018). This is what we all need. We need something that’ll help our country grow, as well. T-Mobile promises to create the best 5G so that these goals are fulfilled. These goals surpass Verizon and AT&T’s purpose of 5G. Telecommunication companies are growing in a way that boggles the mind. Being a consumer, one would want a service provider that offers the best service at the greatest price. T-Mobile is able to do this with prepaid plans and 5G capabilities. Who knew a telecommunication company introducing 5G could affect so many other industries. T-Mobile’s plan is to disrupt every industry and slowing grow within those industries through 5G.
The cellular market industry is a critical component of our society. Customers are constantly connected due to the simplicity of a mobile carrier. T-Mobile is focused on disrupting the cellular industry. The company has branded themselves as the Un-Carrier because they are focused around being different. This approach is successful because they favor their customers and they are continuously finding ways to implement new things for the organization at large.
One way T-Mobile has worked on increasing their revenues and sales is through the acquisition of Layer3. T-Mobile was looking to branch off into a new direction with their Layer3 decision. At this current moment, it’s a very limited service that is only available in certain areas and has not made a huge impact yet. Layer3 is T-Mobile’s future ticket to success. According to Fierce Wireless, “’We have our heads down creating the first TV service for the 5G era,’ boasted T-Mobile’s Sievert of the carrier’s acquisition of Layer3 TV. He said the offering would free users from a cable box and provide them with ‘hundreds of high definition choices,’ and would ultimately connect their TV with their social, digital and mobile life.” T-Mobile is continuing to market their company by taking the Un-Carrier approach.
The company is focused around tailing their services to their customers. The future of the wireless industry is focused around and T-Mobile believes that they can disrupt the industry through their sales approach. For instance, Jeff Baumgartner stated, “He said T-Mobile is still on track to launch is new pay-tv service this year, and a ‘second phase,’ focused on mobility, to follow in 2019.” This TV service is going to improve their sales because they are expanding their current p of services offered by the organization.
As soon as this service launches everywhere, it will potentially serve the company well. We are currently in an error where cable costs are rising and people are choosing to cut costs by cord cutting. Customers are getting rid of their traditional cable services to focus on the internet based streaming options. T-Mobile is taking the right steps by focusing on the establishment of the digital service. Layer3 is working on providing customers with an opportunity to cord cut and save money. This marketing approach is going to successfully improve the company overall.
Crushing and fixing pain points in the technology industry is a key focus for T-Mobile. Through the implementation of a strong 5G network, the carrier is attempting to segment into the home broadband market. Home internet is an essential component to the majority of households. T-Mobile is looking to undercut Charter and Comcast. These are two direct competitors for T-Mobile in the broadband market and the wireless market. Charter and Comcast now offer mobile services and they segmented into this new market. T-Mobile is looking to save customers money and there is no need to compromise.
According to Jeremey Horwtiz, “T-Mobile expects to increase its speeds by 2024, offering 300Mbps downloads to over 250 million potential customers and over 500Mbps downloads to another 200 million people, depending on region.” When you look at the speeds T-Mobile is planning to offer, you cannot go wrong with their offerings. Its comparable and ultimately will improve their sales. When looking at their sales goals. They are currently focused on the cellular industry, yet they are segmenting into new markets. This will improve sales and it will increase their customer base.
Aggressive pricing and greater convenience may help T-Mobile win over broadband users. Company COO Mike Sievert suggests research “has confirmed that there is a large market for New T-Mobile’s in-home broadband offering at the anticipated pricing and service levels” and said that the company’s wireless hardware will let customers self-provision in-home equipment, rather than waiting on and paying for in-home installation.
Home broadband will be the next greatest thing for T-Mobile. Many internet service providers are focused around making money and they rarely care about their customers. T-Mobile is looking to win their customers away because they are bringing the next best thing to your household. 5G internet is the key to success. Its attractive to the point where it will bring more customers to the table.
T-Mobile is really starting to think big and move into increasing their sales. According to Mike Snider, “But Legere hints the company could attempt to disrupt other industries, although some of the suggestions are most likely tongue in cheek. ‘And we’re not gonna stop with Big Cable. What else should we take on? Big Pharma? Banking? Consumer goods? Who knows!’ T-Mobile is moving in the right direction and they are focused around increasing their sales by disrupting industries. Their sales outlook looks great because they are diversifying their product and service profile. The track they are currently taking will help them grow and succeed. Their quarterly earnings statements have been increasing year after year and it only looks better going forward.
As it has been reviewed earlier I would like to reiterate just how T-Mobile is in store for a big-time enhancement as a company once and if they’re fully able to commit to attaining something no other carrier other than Verizon in 4 states total as of right now at least have obtained and that is the launch of 5G. One thing to keep in mind here is not only is this the revolution of all technology to come to us in the world but it is being brought to us in any format such as home internet options and regular cellular service on our cellular devices. Right now, 5g is known to be as one of the fastest speeds and can produce up to 20 X faster than what we are currently getting with 4G LTE today.
Keep in mind that with the launch of 5G it does not mean the utter annihilation of 4G LTE at all as a matter a fact it is going to be kept even with the launch of 5G. I do feel that T-Mobile is making strides greatly to achieve this goal and to want to become one of the supreme brands to come and overthrow Verizon, this is going to be a war between the cellular providers and it is going to end with one of them either staying at the top in Verizon or being overthrown by its counterparts unifying together with one another in T-Mobile and Sprint. This can be a huge deal for the next decades to come and I know that this all is going to play out as a win for all the customers in sense of a revolution in technology and what we can do to increase our timing in making things much faster at medical facilities and providing education to our future generations of children to come.