T-Mobile’s Un-carrier Onslaught Rolls On


T-Mobile’s Un-carrier moves continue to eat into profits

T-Mobile’s Un-carrier onslaught rolling along

Yesterday, T-Mobile’s Un-carrier 8 announcement added monthly rollovers for any unused monthly data.  ” Apparently ‘Stash’ is cool and ‘Rollover’ is such a 1980s term, at least that’s the way T-Mobile’s CEO answered the media question – why don’t you just call it “Rollover”?  According to CNET (here) AT&T actually still owns the rights to use the term “rollover.” “We own equity in ‘rollover’ and we have for years,” said a spokesman for the company.

The T-Mobile announcement ignited the usual press furor to the “un-carrier” announcements – I assume that the plan, because the rollover idea is nothing new.  Many of the media folks went back in to the annals to dig up Cingular and the rollover voice minutes, but what about the announcement from C spire earlier this month (C spire sets data caps rolling)?

Either way you just gotta love T-Mobile’s marketing machine, just look at this press release…

“T-Mobile (NYSE: TMUS) today announced its next industry-rocking Un-carrier™ move − eliminating the infuriating wireless industry practice of confiscating unused data you’ve already paid for. With Un-carrier 8.0, high-speed data you don’t use each month automatically rolls into a personal Data Stash™ so you can use it when you need it for up to a year.…”

Have you ever seen a more emotional call-to-action in a press release than “eliminating the infuriating wireless industry practice of confiscating unused data you’ve already paid for”.  A little more of this and I’ll have trouble deciding whether Legere is a reincarnation of Mother Teresa or Robin Hood.

But seriously, while this un-carrier move is nothing really new the T-Mobile marketing machine is doing its job.  Just look at the subscriber additions T-Mobile has made over the last few quarters, impressive, yes?!

T-Mobile’s Un-carrier play is gaining subs but  sucking out profits

T-Mobile’s Un-carrier play is gaining them subs

The big problem is that despite significant increases in subscriber numbers, T-Mobile posted a quarterly loss of $94 million even though revenue rose 10 percent to $7.35 billion.   The cut-throat data price war in the US is putting pressure on carriers’ bottom line.  Profits are being squeezed by the need to match heavy discounts and promotions to control churn.  Other operators have warned of lower profits too, yes even Verizon!  How long can operators keep this up?  Until someone give the go-ahead for a T-Mobile acquisition maybe?

More Here… [T-Mobile]


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