Newsletters
Business News for Technology Decision-Makers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Business Briefing Mobile Industry News Small Business Tech Trends More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Mobile Industry News
Real-time info services with Neustar
Average Rating:
Rate this article:  
T-Mobile Investing $4 Billion into LTE Network
T-Mobile Investing $4 Billion into LTE Network

By Jennifer LeClaire
February 23, 2012 11:08AM

Bookmark and Share
"T-Mobile is trying to make up for lost ground," said telecom analyst Jeff Kagan. "If you look at the top national carriers, AT&T and Verizon and Sprint have been rapidly building and growing their high-speed data networks. T-Mobile hasn't. T-Mobile was sitting out this network phenomenon that we've watched occur since the iPhone came out."
 



The day after Verizon Wireless posted another LTE network disruption, T-Mobile announced plans to invest $4 billion in its own 4G network. T-Mobile plans to launch a high-speed LTE network in 2013 in hopes of stopping a near-mass exodus of customers to competing carriers.

T-Mobile calls it its "challenger strategy," and plans include deploying advanced hardware at 37,000 cellular sites. T-Mobile said it would tap into the wireless spectrum band AT&T is offering as part of their merger-kill agreement, if the Federal Communications Commission approves the transfer.

"Though we are not satisfied with the contract customer losses and the decreased total revenues, the quarterly margin improvement year-on-year was impressive," said Rene Obermann, CEO of Deutsche Telekom, T-Mobile's parent company. "The spectrum gained through the break-up fee empowers T-Mobile USA to start LTE-based services in key U.S. markets and strengthens its competitiveness."

Blaming iPhone 4S

T-Mobile has to do something. Deutsche Telekom was betting heavily on the AT&T merger to pan out as the carrier continued to bleed market share -- and the bleeding hasn't stopped. T-Mobile lost 802,000 customers in the fourth quarter of 2011. That compares with a loss of 251,000 in the year-ago period.

The churn affected T-Mobile's revenues, albeit only slightly. T-Mobile posted $5.2 billion in fourth quarter 2011 revenues, compared with $5.4 billion in the year-ago period. On the year, total sales dipped 3.3 percent year-over-year to $20.6 billion.

T-Mobile pointed to negative impacts in the fourth quarter from the iPhone 4S launch at AT&T, Verizon Wireless and Sprint. As the only major U.S. carrier without an iPhone in play, T-Mobile is an underdog in the smartphone wars.

"Not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011," said Philipp Humm, CEO and president of T-Mobile USA. "In 2012 and 2013, T-Mobile USA will invest to get the business back to growth, including an incremental $1.4 billion investment in its network modernization initiative, which will total a $4 billion investment over time."

Making Up for Lost Ground

Jeff Kagan, a telecom analyst in Atlanta, is not surprised by the customer bleeding or the $4 billion investment. Many analysts expected T-Mobile to make a big move with the multibillion-dollar break-up fee it received from AT&T.

"T-Mobile is trying to make up for lost ground," Kagan said. "If you look at the top national carriers, AT&T and Verizon and Sprint have been rapidly building and growing their high-speed data networks. T-Mobile hasn't. T-Mobile was sitting out this network phenomenon that we've watched occur since the iPhone came out."

Kagan's research shows that the market for wireless data has crossed over the 50 percent line. In other words, well over 50 percent of wireless network usage is wireless data. Over the next three years, he predicted, the wireless data side of the network is going to account for 97 percent of the traffic, leaving only 3 percent as voice.

"We are in the middle of a major transformation, and in the beginning T-Mobile didn't think this was real," Kagan said. "T-Mobile thought it was going to be over. Now they are spending billions of dollars trying to improve their network, which is what they should do. T-Mobile could transform themselves from being in the shadows to being a major player in this space over the next year or two or three."
 

Tell Us What You Think
Comment:

Name:



Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.


 Mobile Industry News
1.   Google, Rockstar Suit Stays in Calif.
2.   Google Earnings, Sales Disappoint
3.   Profit and Revenue Slip for IBM
4.   Malware Targets Facebook Users
5.   Intel Reports Lower 1Q Net Income


advertisement
Google, Rockstar Suit Stays in Calif.
Judge not fooled by Apple's tricks.
Average Rating:
Google Earnings, Sales Disappoint
Amid persistent downturn in ad prices.
Average Rating:
Malware Targets Facebook Users
iBanking app spys on communications.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
NewsFactor Business
Home/Top News | Business Briefing | Mobile Industry News | Small Business | Tech Trends | Business Intelligence | Sales & Marketing | Innovation
E-Commerce | CIO Issues | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.