T-Mobile know where it stands. With around 30 million subscribers, it lags behind Verizon, AT&T, and Sprint as the No. 4 wireless carrier in America. A wide gap lies between T-Mobile and Sprint, nearly 20 million subscribers, so it will take an aggressive strategy to get within striking distance. Rumor had it that T-Mobile would offer a $50 postpaid unlimited plan, severely undercutting the competition, but instead they just reorganized plans. In other areas, like handsets and coverage, though, T-Mobile could be on the right track.
We learned earlier this month that the company will expand its 3G network to cover 200 million people by the end of 2009. T-Mobile was the last of the major four to roll out a 3G network, so having basic 3G coverage isn’t enough. To that end they’re deploying 7.2 Mbps HSDPA to all of these 3G markets. AT&T has announced a similar measure, though it might not finish upgrading for another two years. T-Mobile, therefore, has an advantage.
While AT&T upgrades to 7.2 Mbps, T-Mobile will be busy upgrading to HSPA+ 21 Mbps speeds. The service already exists in Philadelphia, and the company estimates that it will reach all markets by the middle of next year. This will help T-Mobile compete with Verizon, which plans to have its LTE network deployed by about the same time. With the network in place and a strong handset lineup in place, T-Mobile could seriously compete with the bigger carriers.
This type of move doesn’t come without risk, of course, and T-Mobile is seeking a partner to share said risk. A partnership with a low-cost carrier like MetroPCS, in addition to a financial investor, could provide ample backing for T-Mobile’s ambitious plans. Once the network is in place there is a chance, albeit slight, that T-Mobile could see fit to engage the other carriers in a price war. It didn’t come true before, but with the other amenities it is a more feasible option. Again, that’s just speculation, and it’s doubtful T-Mobile strays far from the industry norms.
With the U.S. nearing the saturation point of mobile phone subscribers, carriers have to make moves to woo subscribers from other networks. T-Mobile seems to understand that, and are taking measures not just to catch up with the big boys, but to surpass them in network speed and handset selection. If this doesn’t work, nothing will.
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