Feature Article

Free eNews Subscription>>
November 30, 2011

You Can't Buy T-Mobile

AT&T is showing signs of accepting its fate and getting ready to pay Deutsche Telekom $4 billion for its failure. 

I have long been in favor of the merger because I saw it as a cheap way for AT&T to buy spectrum. I also thought that it made the migration to 4G easier.

Now comes the question of what comes next for both companies?

Let’s put AT&T to the side for a moment and focus on T-Mobile.

I have never been a fan of T-Mobile’s advertising strategy. The company positions itself with the Anne Hathaway lookalike girl as a cheaper solution. However, they have partnered with Google to be the first Android deployer (and of course previously with Google’s Andy Rubin when he was Danger Software and the Sidekick). 

Before the iPhone took the world by storm, the best way to get a cool phone from the rest of world (like the Nokia N95) was with T-Mobile. T-Mobile is still the most open carrier in the U.S. and it should play up that aspect of its strategy.

The Anne Hathaway look alike should not be talking to costly twins or dwarfs but to people who travel outside of the U.S. Open and Global- that should be the strategy.

Now comes the face saving part for AT&T. 

For the 4G, take the WiFi asset or at least form a WiFi consortium. In theory this is outside the jurisdiction of the DoJ and FCC. 

The real advantage is not only the off loaded but the on load thanks to Enhanced Packet Data Gateway [EPDG]. Using the WiFi network to enable roaming onto their networks could enable an expansion of third party applications.

And this does not have to be only for wireless. The reality is that the app world is embracing HTML5 and the any-to-any aspect is pushing for resurgence in computer applications as well.

This is the most positive spin I can put on the situation. The reality is that T-Mobile has now become toxic.

Can it stand alone without it looking handicapped? T-Mobile has been bleeding customers since the merge was announced and to reverse the fortunes they are going to need something dramatic.

Can anyone make the competitive argument that investing or acquiring T-Mobile is logical at this point?

LightSquared would have to wipe the egg of its face. Microsoft would make sense, but probably could expect as much wrath as AT&T. Google has been a good partner, but in order for them to invest or acquire they probably need to unravel their Clearwire investment. 

Given T-mobile’s commercials, MetroPCS would be a logical choice. Only problem is that T-Mobile would have to be the acquirer in this case.

So the result is that T-Mobile has been the victim. AT&T has again been punished for the past and regulators have failed to manage for the future.


Carl Ford is a partner at Crossfire Media.

Edited by Stefanie Mosca


FOLLOW MobilityTechzone

Subscribe to MobilityTechzone eNews

MobilityTechzone eNews delivers the latest news impacting technology in the Wireless industry each week. Sign up to receive FREE breaking news today!
FREE eNewsletter