Feature Article

November 19, 2012

T-Mobile Making Deals Amidst Uncertain Future

You can’t fault T-Mobile for taking some pretty interesting and perhaps odd steps when it comes to its business plan. The company is one of America’s big four cellular providers, but it is also a company that finds itself as one of the only big boys that is not currently carrying the iPhone. The company thinks it may have strengthened its standing thanks to a merger with Metro PCS and CTO Neville Ray says that merger might just be the tip of the iceberg.

“Are there opportunities for us to continue to grow scale on our business through combinations or acquisitions?” Ray said at a conference organized by Morgan Stanley in Barcelona. “Historically we’ve always been open and looked at those opportunities and will continue to do so.”

The company still needs to make some more moves if it really wants to compete with the big boys. The merger still has the company trailing Verizon, AT&T and Sprint when it comes to the number of subscribers. One of the ways the company could lure customers over to them would be to continue to highlight its nationwide 4G networks. They also allow for unlimited data, which makes using a 4G network that much more attractive.

The company also believes that a change at the top might mean a bit of a surge in the market. John LeGere was named the CEO in September and he has already been spearheading a move in more investments. These network investments should pay off with faster services that will be based on LTE technology. The company believes it will be able to have these speeds fully operation by the midpoint of 2013.

All of these changes come at the same time that there has been a lot of talk about the United States limiting the number of companies that offer nationwide service to three. One has to wonder where T-Mobile would be standing should that decision come down the pike.

Edited by Brooke Neuman

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