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Friday, February 21, 2014

The T-Mobile Juggernaut


T-Mobile was in trouble. With the introduction of the iPhone in 2007, T-Mobile began to lose customers to larger carriers. The iPhone, exclusivity offered by AT&T and later Verizon, made Sprint and T-Mobile irrelevant to customers looking for the latest and greatest experience. It was such a problem that Sprint, in 2011, signed a $20 billion dollar deal to purchase at least 30 million iPhones over the next 4 years from Apple. Sprint finally got its hands on the best selling phone on the market leaving T-Mobile as the only network without Apple’s golden goose. After rolling out its 3G network, T-Mobile had no clear path to 4th generation network technology (LTE). Investments in building out its network were deemed unwise due to the consistent loss in customers and profits. Its parent company, Deutsche Telekom, was now looking to get out of the US market.