T-Mobile Reports Second Quarter Numbers

There aren’t many ways for us to sugar coat the most important aspects of these second quarter numbers from T-Mobile so we’ll just come out and say it, there are some good aspects and some bad ones. Total customers declined last by 93,000 in the second quarter, compared to 77,000 net customer losses in the first quarter of this year. We have to express some surprise here considering we saw T-Mobile have their best sales s over the Fathers Day weekend. Part of this would be due to a significant climb in prepaid customer net losses of 199,000, which was up from 41,000 in the first quarter. On the bright side, T-Mobile gained 106,000 contract customers in the 2nd quarter compared to 118,000 net customer losses in the first quarter of this year

Moving along, we see that T-Mobile has 6.5 million customers using 3G capable devices, a 25% increase from the first quarter of this year. With a 3G network covering 208 million people and an HSPA+ network covering 85 million T-Mobile certainly hopes to make it with its late 3G launch by leading the charge on 4G like speeds.

The other piece of good news here is that service revenues were up, to the tune of $4.70 billion, an increase from $4.63 billion from the first quarter. Deutsche Telekom CEO, Rene Obermann gave a positive spin but we can’t imagine they aren’t exploring just what can be done to give T-Mobile a significant boost in the coming quarters.

“T-Mobile USA soundly delivered on its aggressive HSPA+ network build out and roadmap execution in the second quarter; together playing a large role in driving strong data ARPU, as well as achieving contract customer growth and improved service revenue trends.”

Outgoing T-Mobile USA CEO, Robert Dotson also gave a positive spin with as T-Mobile’s data revenues continue to grow,

“In the second quarter of 2010, customers embraced T-Mobile USA’s industry leading value which makes it simple and affordable for consumers to trade-up to next generation products and services,” said Robert Dotson, President and CEO, T-Mobile, USA.  “The number of 3G smartphones in the hands of our customers year-over-year has tripled to 6.5 million supported by a network that offers the broadest reach of 4G speeds in the U.S. as our growth continues through data revenues.”

We can’t say these numbers, at least in regards to subscriber growth aren’t a little disappointing and we can only wonder what the minds in Germany are thinking. We undoubtedly hope that a continued focus on competitive pricing combined with faster data speeds than the competition can bring T-Mobile back on track as we look toward the end of the year and the holiday season where there are plenty of opportunities to grab new customers by the truckload.

Want the full read:


$4.70 billion service revenues in the second quarter of 2010, an increase from $4.63 billion in the first quarter of 2010, but down from $4.77 billion in the second quarter of 2009

  • Blended data ARPU of $11.60 in the second quarter of 2010, up from $10.90 in the first quarter of 2010, and $9.90 in the second quarter of 2009
  • 6.5 million customers using 3G-capable smart phones as of the second quarter of 2010, a 25% increase from the first quarter of 2010
  • T-Mobile USA’s national 3G network covers 208 million people and the HSPA+ network upgrade now covers 85 million people delivering 4G speeds (as defined in Note 11 to the Selected Data below), including service in New York, Seattle, Los Angeles and Las Vegas
  • OIBDA of $1.42 billion in the second quarter of 2010, compared to $1.39 billion in the first quarter of 2010, but lower than $1.60 billion in the second quarter of 2009
  • Total customers served declined by 93,000 in the second quarter of 2010, compared to 77,000 net customer losses in the first quarter of 2010, and 325,000 net customer additions in the second quarter of 2009

BELLEVUE, Wash., August 5, 2010 — T-Mobile USA, Inc. (“T-Mobile USA”) today reportedsecond quarter of 2010 results.  In the second quarter of 2010, T-Mobile USA reported service revenues of $4.70 billion up from $4.63 billion in the first quarter of 2010, and OIBDA of $1.42 billion compared to $1.39 billion reported in the first quarter of 2010. Total customers served declined by 93,000 in the second quarter of 2010 compared to 77,000 net customer losses in the first quarter of 2010, but with positive net traditional postpay customer additions which are included within contract customers.  Additionally,customers using 3G-capable smart phones continued to increase significantly during the quarter, driving blended data ARPU growth.

“In the second quarter of 2010, customers embraced T-Mobile USA’s industry leading value which makes it simple and affordable for consumers to trade-up to next generation products and services,” said Robert Dotson, President and CEO, T-Mobile, USA.  “The number of 3G smartphones in the hands of our customers year-over-year has tripled to 6.5 million supported by a network that offers the broadest reach of 4G speeds in the U.S. as our growth continues through data revenues.”

René Obermann, Chief Executive Officer, Deutsche Telekom, said, “T-Mobile USA soundly delivered on its aggressive HSPA+ network build out and roadmap execution in the second quarter; together playing a large role in driving strong data ARPU, as well as achieving contract customer growth and improved service revenue trends.”


  • T-Mobile USA served 33.6 million customers (as defined in Note 3 to the Selected Data, below) at the end of the second quarter of 2010, down from 33.7 million at the end of the first quarter of 2010 and up from 33.5 million at the end of the second quarter of 2009.
    • In the second quarter of 2010, total customers served declined by 93,000, compared to a net decline of 77,000 in the first quarter of 2010 and net customer additions of 325,000 in the second quarter of 2009.
    • Sequentially and year-on-year, the number of net new customer additions decreased due primarily to fewer net prepaid customer additions.
    • Contract net customer additions were 106,000 in the second quarter of 2010, compared to 118,000 net contract customer losses in the first quarter of 2010, and 56,000 net contract customer additions in the second quarter of 2009.
      • Sequentially and year-on-year, the increase in net contract customer additions was driven primarily by improvements in net traditional postpay customer additions, which were positive in the second quarter of 2010 and benefitted from a variety of incentive offers.
      • Connected device customers, included within contract customers (as defined in Note 3 to the Selected Data, below), totaled 1.5 million at June 30, 2010 and continued to grow significantly during the second quarter of 2010.
    • Prepaid net customer losses, including MVNO customers (as defined in Note 3 to the Selected Data, below), were 199,000 in the second quarter of 2010, compared to 41,000 net prepaid customer additions in the first quarter of 2010 and 268,000 net prepaid customer additions in the second quarter of 2009.
      • In the second quarter of 2010, lower MVNO net customer additions were the primary reason for the year-over-year decrease in prepaid net customer additions.  MVNO customers totaled 2.1 million at June 30, 2010.
      • Sequentially, prepaid net customer additions declined in the second quarter of 2010 due primarily to higher prepaid churn as discussed below.


  • Blended churn (as defined in Note 2 to the Selected Data, below), including both contract and prepaid customers, was 3.4% in thesecond quarter of 2010, up from 3.1% in the first quarter of 2010 and the second quarter of 2009.
  • Contract churn was 2.2% in the second quarter of 2010, in line with the first quarter of 2010 and second quarter of 2009.
  • Prepaid churn increased in the second quarter of 2010 to 7.6% from 6.8% in the first quarter of 2010 and 7.0% in the second quarter of 2009.
    • The sequential increase in prepaid churn was due primarily to competitive intensity impacting traditional prepaid and MVNO customers.

OIBDA and Net Income

  • T-Mobile USA reported OIBDA (as defined in Note 6 to the Selected Data, below) of $1.42 billion in the second quarter of 2010, up slightly from $1.39 billion in the first quarter of 2010 but down from $1.60 billion in the second quarter of 2009.
    • Sequentially, higher service revenues (discussed below) were partially offset by a higher equipment subsidy loss driven in part by a variety of incentive offers and as customers adopt more costly 3G-enabled smart phones.
    • Compared to the second quarter of 2009, OIBDA decreased due to lower service revenues from fewer branded customers and a higher equipment subsidy loss.
    • OIBDA margin (as defined in Note 7 to the Selected Data, below) was 30% in the second quarter of 2010, consistent with the first quarter of 2010 but down from 34% in the second quarter of 2009.
    • Net income in the second quarter of 2010 was $404 million, compared to $362 million in the first quarter of 2010 and $425 million in the second quarter of 2009.


  • Service revenues (as defined in Note 1 to the Selected Data, below) were $4.70 billion in the second quarter of 2010, up slightly from $4.63 billion in the first quarter of 2010, but down 1.4% from $4.77 billion in the second quarter of 2009.
    • The sequential increase in service revenues was due primarily to data revenue growth, driven by the adoption of 3G data revenue plans and higher roaming revenues, partially offset by lower voice revenues.
    • Year-on-year, service revenues declined due primarily to fewer branded customers.  However, the -1.4% rate of decline year-on-year in the second quarter of 2010 was an improvement from -3.0% year-on-year in the first quarter of 2010.
    • Total revenues, including service, equipment, and other revenues were $5.36 billion in the second quarter of 2010, up from $5.28 billion in the first quarter of 2010 and $5.34 billion in the second quarter of 2009.
      • Compared to the first quarter of 2010, the increase in total revenues was driven primarily by higher service revenues as described above.
      • Compared to the second quarter of 2009, the increase in total revenues was due primarily to higher equipment sales as customers adopt 3G-capable smart phones, which was partially offset by lower service revenues as described above.


  • Blended Average Revenue Per User (“ARPU” as defined in Note 1 to the Selected Data, below) was $47 in the second quarter of 2010, up from $46 in the first quarter of 2010 but down from $48 in thesecond quarter of 2009.
    • Blended ARPU increased sequentially for the first time since the second quarter of 2008 driven by contract ARPU growth.
    • Contract ARPU was $52 in the second quarter of 2010, up slightly from $51 in the first quarter of 2010, and consistent with the second quarter of 2009.
      • The sequential increase in contract ARPU was driven by data revenue growth, partially offset by lower voice revenues.
    • Prepaid ARPU was $18 in the second quarter of 2010, consistent with the first quarter of 2010 but down from $21 in the second quarter of 2009.
      • The decrease compared to the second quarter of 2009 was due primarily to proportionally fewer FlexPaySM no-contract customers and a higher proportion of lower ARPU MVNO customers.
    • Data service revenues (as defined in Notes 1 and 9 to the Selected Data, below) were $1.17 billion in the second quarter of 2010, up 18% from the second quarter of 2009.  Data service revenues in the second quarter of 2010 represented 25.0% of blended ARPU, or $11.60 per customer, up from 23.8% of blended ARPU, or $10.90 per customer in the first quarter of 2010, and 20.8% of blended ARPU, or $9.90 per customer in the second quarter of 2009.
      • 6.5 million customers were using 3G-capable smart phones (such as the T-Mobile® MyTouchTM 3G Slide, HTC HD2 and BlackBerry® BoldTM 9700) on the T-Mobile USA network at the end of the second quarter of 2010, an increase of 25% from 5.2 million customers as of the first quarter of 2010 and more than tripling from 2.1 million customers as of the second quarter of 2009.  3G-capable smart phone customers now account for 19% of total customers, up from 15% in the first quarter of 2010 and 6% in second quarter of 2009.
      • The increase in customers using 3G-capable smart phones and the continued expansion of the upgrade of the 3G network are driving Internet access revenue growth with the increasing adoption of 3G data plans.  Additionally, messaging continues to be a significant component of blended data ARPU


  • The average cost of acquiring a customer, Cost Per Gross Add (“CPGA” as defined in Note 5 to the Selected Data, below) was $330 in the second quarter of 2010, up from $310 in the first quarter of 2010 and $270 in the second quarter of 2009.
    • Sequentially and year-on-year, CPGA increased in the second quarter of 2010 due primarily to a higher subsidy loss as T-Mobile USA offered a variety of incentives and as customers move towards purchasing more costly 3G-capable smart phones.
    • The average cash cost of serving customers, Cash Cost Per User (“CCPU” as defined in Note 4 to the Selected Data, below), was $23 per customer per month in the second quarter of 2010, consistent with the first quarter of 2010 and second quarter of 2009.
      • Sequentially and year-on-year, CCPU was consistent as a higher handset subsidy loss from a greater number of customers upgrading to more expensive 3G-capable smart phones was offset by lower network costs.

Capital Expenditures

  • Cash capital expenditures (as defined in Note 8 to the Selected Data, below) were $682 million in the second quarter of 2010, compared to $666 million in the first quarter of 2010 and $1.08 billion in the second quarter of 2009.
    • Year-on-year the decrease in capital expenditures was due primarily to higher network expenditures in the second quarter of 2009 as a result of the aggressive build out of the national UMTS/HSPA (3G) network in 2009, which covers 208 million people as of the end of the second quarter of 2010.
    • The upgrade to high speed packet access plus (HSPA+) technology,which delivers customers 4G data speeds (as defined in Note 11 to the Selected Data, below), now covers 85 million people, in markets such as New York, Seattle, Los Angeles, Washington D.C. and Las Vegas

Stick Together Highlights

  • During the second quarter of 2010, Robert Dotson, president and chief executive officer of T-Mobile USA, announced his intent to transition to new opportunities in 2011 after 15 years of service with the company.  In order to ensure a smooth transition of leadership, Dotson has committed to stay actively engaged in the business until May 2011. His designated successor is Philipp Humm, an experienced DT executive and former CEO of T-Mobile Germany. Humm was last responsible for sales and service in Europe as chief regional officer (CRO) Europe. After a period of transition with Dotson, Humm will take over as CEO of T-Mobile USA in February 2011, while Dotson will remain on as a non-executive board member until May 2011.
  • T-Mobile now offers 4G speeds (as defined in Note 11 to the Selected Data, below) to more people than any other network in the country reaching nearly 50 major metropolitan areas across the country.  T-Mobile is on track to deliver HSPA+ speeds in 100 major metropolitan areas, covering 185 million people in the U.S. by the end of this year.  Complementing the network expansion is a wider availability of the webConnectTM Rocket USB Laptop Stick and the Dell InspironTM Mini 10.  Additionally later this summer, T-Mobile will unveil its first HSPA+ capable smart phone.
  • On June 19, 2010, T-Mobile USA celebrated Father’s Day with an unprecedented industry-first promotion that offered a free cell phone to new contract family plan customers, including customers adding a line to an existing family plan.
  • On July 29, 2010, T-Mobile USA received the highest ranking among national wireless carriers in the J.D. Power and Associates 2010 Wireless Customer Care Performance StudySM — Volume 2.  The award further reflects T-Mobile’s commitment to providing an outstanding customer experience, whether in-store, online or on the phone.

T-Mobile USA is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY). In order to provide comparability with the results of other US wireless carriers, all financial amounts are in US dollars and arebased on accounting principles generally accepted in the United States (“GAAP”).  T-Mobile USA results are included in the consolidated results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports financial results in Euros and in accordance with International Financial Reporting Standards (IFRS).

This press release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP.  Reconciliations from the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below following Selected Data and the financial statements.

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  • bubbles

    Ugh, they need to add better devices, high end devices do sell. Look at sprint and verizon. Even not so tech savvy people buy high end devices, I know plenty people with droid, droid x,htc incredable and the evo. They need to stop adding this low or mid range Devices and they need better advertising. Everytime I see a did commercial I want to buy a droid and I don’t even like the droid or droid x, lol. Advertising goes along way.

    • Air One

      I couldn’t agree anymore Bubbles… T-MO NEEDS MORE HIGH END PHONES TO ENTICE MORE PEOPLE TO BUY MORE PHONES AND POSSIBLY GET MORE PEOPLE TO GET ON THE T-MO WAGON! I was on the phone with a rep yesterday expressing my frustration and was hoping they were recording the call. When the HD2 came out T-MO was on a role although it was OS 6.5, then they fell off with a Garminefone, really.. the Garminefone? You promoted the Garminefone as if someone really wants to buy a phone that specializes with GPS capabilities. C’mon, Gps works with almost all phones just fine. Waste of promo and a phone. T-Mo comes out with A Garminefone and Apple drops 4g phone, Verizon drops the incredible and now Droid X, and sprint hit us with the Epic 4G! ok we came with the Vibrant WHOO HOOO, but Captivate has rolled out also. I LOVE T-MO, been here for a while, but i want the best and we are not offering that, or something close to it.

      • joel

        You vented that frustration to a rep in the hopes that “they were recording?” No offense, but that’s a useless gesture. Even writing an email would have more of an impact. FYI, every call is recorded, but it has nothing to do with “someone higher up” listening and making note of your concerns about the direction of the company. They listen only for “quality or training purposes,” meaning they make sure the rep is doing their job, nothing more. Unless you called expressly to complain about phone selection and make the rep file a voice form, the most your venting to a rep will accomplish is a note that says “Offered genuine empathy for customer’s concerns” on their QA score(if that rep did offer empathy, lol) ;) … like I said, if you want to add your voice to the already deafening call for more high-end devices, find the “contact us” link on the website and write an email.

  • mikeeeee

    3 things.

    better phones.

    better coverage.

    fire the whole marketing department and get nerdy people of all ethnic backgrounds and focus on them.

    young kids are not buying wired phones, go for that market.

  • Adam

    Ok, so I am a T-Mobile fan! But I don’t think they can pull out with the HSPA+ (4G like speeds) only because people want the newest, latest and greatest technology. 4G like speeds don’t sound as good as 4G speeds. Its all in the marketing and with Sprint’s “The fist only happens once” campaign its going to be hard to say “there is still life in the OLD technology”.

    I hope T-Mobile can pull out but I really see them selling off the US market share or buying up another company like Sprint…but given T-Mobile’s past I bet they do something stupid and buy up some smaller companies to try and gain market share.

    Wish you luck T-Mobile!

    • Relikk2

      No one truly has 4g yet. Sprint calls it that but it’s really not, its a marketing lie. HSPA+ is much faster then Sprints WIMAX (4G), and T-Mobile really does have the fastest network available. T-mobile needs to learn how to market, they should say something like “Currently the fastest nationwide network available” but maybe they’re waiting on HSPA+ devices.

      The company that owns T mobile has more money then they know what to do with and should be able to hire someone who can market. If you didn’t know Tmobile’s parent’s parent company own’s some of the largest companies in the world including Spirit Aero Systems.

  • ex tmobile user

    Teen mobile is dead.. sprint is back if sprint is doing great what makes tmobile think they can succeed.. tmobile has no competing phone to go against everybodyelses exclusives.. sprint has evo att iphone verizon droid x… tmobile has n1 but so does at&t.. so tmobile is dead meat. Sprint said they have been takin alot of marketshare from tmobile according to fiercewireless..

    • Davidohio

      Hey ex t-mobile user where do you get your information from? Sprint is NOT doing well at all. Just look at the numbers. Just because they have a “cool” phone does not mean they are doing well. T-mobile is in a much better position than Sprint.

      • Air One

        He mr know it all, why did i read that t-mo may be joining sprint? i also read that t-mo was not in that great a position because of the lack of coverage and losing subscribers. Deutche Tele has faith in tmo and they are working on a better network, so we’ll see what happens.

      • iluvhatemail

        hey ohio, last quarter sprint added subsribers, tmobile didnt. I think that means they are doing well in comparison.

      • TheLight


        as much as Im Magenta lover and fanatic….I admit at the time 6eing Sprint is doing 6etter than us…I just seen that EVO is the #2 selling Android phone 6ehind the Droid…lets see the Droid has 6een out since last octo6er and verizon has the most customers so that’ll 6e hard to top//and still Sprint managed to sell as more EVO’s than VW sold Incredi6les…thats quite a feat to me 6eing the num6er 3 Carrier in America with the 2nd most android phones sold…Sprint took advantage when T-Mo6ile should have 6een pushing the envelope like they did with coming out with the 1st android phone..they dropped the 6all and they need someone who knows that and to fix it at DT..

        On a positive note…we have a speculated road map that seems to have a 6east of a line up on the way starting next month…if TMo6ile drops the 6all on any of these phones with weak marketing and twitter games we’ll still 6e num6er 4 next year… just my opinion…

      • ItsMichaelNotMike

        iluvhatemail… Sprint is doing well compared to T-Mobile?

        Let’s see:

        T-Mobile posts a net profit of $404 million for the quarter.

        Sprint posts a net loss of $760 million for the quarter.

        I am not sure, but the last time I checked both T-Mobile and Sprint are businesses. And what I learned in grammar school was that the goal of being in business is to make money.

        Fast forward to Q2 2010. Do I want an increase of subscribers or the money.

        I’ll tell you want, you can have Sprint’s numbers, I’ll take T-Mobile’s. ;)

      • TheLight


        I agree on that aspect of money…

        6ut Sprint is fighting their way 6acc from major losses at the sametime and we need to take advantage of that and steal their customers like their doing to us and AT&T..they still reported 110k contract customers added and 230 prepaid…that created upwards to 1.4 6illion in cash that they have to use…so in the long run T-Mobile wont catch Sprint if it doesnt do something drastic cuz thier on a great re6ound

    • J

      Sprint added customers but continued to lose money. You can’t lose millions of dollars every quarter and call yourself “successful”.

  • sanjay

    They have become so hum drum. I can’t get excited about T-mobile. I am stuck with the Touch Pro 2 since last fall. Want to upgrade but nothing exciting (I like WM phones) enough to warrant putting out full price. No exciting services, like TV, etc. When they do come up with new phones they are so expensive (yes I am on the EVEN MORE PLUS plan). They are totally opposite of the Ally Bank commercial because T-Mobile comes up with promotions and offers that are for new(er) customers and leave the loyal long time customers in the dark. I often think about leaving but so far inertia has won out. Why stick around? Not sure. I think I am waiting for WM 7 to see what T-mobile does there. If they flop there I will quite likely move to another provider (maybe Sprint).

    • nyuhsuk

      I feel the same way about the phone market. I have the TP2 as well but finally took the plunge and got me the HD2. Nobody (none of the other carriers either) is going to pump out a WM device until later this year so you might as well wait if you don’t want to do the HD2. At least the HD2 is WM6.5.x and has a somewhat modern specs. I have doubts that any new devices are going to be released with WM6.5.x unless you go Chinese KIRFs.

      What I would really want is another TP iteration with WM 6.5.x, that bangin’ keyboard, and some more MHz/GHz and RAM.

  • RJ

    I agree that it’s about a better selection of phones. I was at Tmobile yesterday returning my Vibrant (GPS issue) and looked around for something to exchange and nothing interested me. The HD2 should have shipped with Android and I still can’t believe T-Mobile hasn’t come out with a successor to the G1 yet. While I understand that there is still a market for dumb phones…more and more people are looking at the smart phone market. I love T-Mobile mainly because of the price and signal strength that I get in my area, but it always seems like we are behind on phone selection.

    • Leachpunk

      I have Android 2.2 on my HD2 with the only things currently not working are the Flashlight and Camcorder apps (and that is mostly in part to the rom being an HTC Desire rom)

      They still have to get Android to install to the NAND, but currently I’m running a WM rom, 6.5.3, Android 2.2, and Ubuntu 10.4 on the HD2, I can’t wait for WP7 to replace WM 6.5.3

  • chotpy

    seriously. more good phones more often, please. good smartphones. some with keyboards would be nice, too. >_>*

  • JaylanPHNX

    Advertising is key. They need to better explain there Even More Plus plans.

    • mad dog

      Even more plus plans aren’t the answer. The majority of us won’t pay full price for phones. Some will but not the majority.

      • hi

        exactly, that’s not the answer at all.

        If people cared about money then the most expensive cell companies in the nation (ATT/Verizon) wouldn’t have an insurmountable lead. It comes down to phone selection plain and simple. Just look at what Sprint was able to do with ONE PHONE.

  • zapote21

    So 200K prepaid cutomers left. 100K went to contracts, the rest bailed…
    Things will NOT change until TMO gets high end phones in the EVO/DroidX category…

  • AndroidLover

    OK, let’s look at strengths here:

    Pros: customer service, pricing
    Cons: coverage, phone selection

    Pros: coverage, phone selection
    Cons: pricing

    Pros: phone selection
    Cons: serious lack of coverage

    Pros: Um…iPhone
    Cons: pricing, dictator-like control over everything, customer service

    What T-Mobile needs to do is ratchet up their coverage (Chicago doesn’t have HSPA+ yet?!), and SERIOUSLY work out some deals with the phone manufacturers so they don’t keep getting snapped up by the competition. If that means a merger is required, then so be it.

    • AndroidUser

      Sprint con: lack of coverage

      are you kidding me?… lol. Go look at maps my friend

      • AkuNoHana

        Maps lie. Sprint coverage in my area is almost as bad as AT&T. And we don’t even have 3G on Sprint here so forget about “4G”. Tmo has 3G here.

  • nerd lust

    We need those rumored devices asap! That will level the playing field

  • Vision77

    I have said this for a while now….T-Mo needs a (T-Mo exclusive) signature high end device….And I will go as far as to say there needs to be some sort of re-alignment of the top dogs…especially with the person who has the final say so on device choices for the company. The Marketing department will need to change its strategy as its marketing efforts are seen as “timid” to Verizon’s droid campaign…I’m sorry but the vibrant, HD2, and, MT3GS are not cutting it. T-Mo needs to get aggressive in its pursuit of quality high end devices and in its marketing. Lets see what they do with the vision and project emerald…..

    • ThisGuy

      you must be dreaming….you know what kind of advertising the vision/emerald will get?

      NONE, they will run a commercial about how great it is to be in a family plan with basic flip phones for only 59.99 a month! lyke OMG!

  • Justin

    Phones are big part imo (Give Dad his sweet smartphone and the whole family will come along for the ride). Also they need to increase their coverage, voice and data.

  • 30014

    Stop focusing on family plans and go after the tech savy consumer. We are the one’s that buy those data plans that really are the companies bread and butter.

  • raymond

    yes tmobile does right now they arent even leveled they are falling

  • My2Cents

    Here’s a thought….get better coverage! In Georgia you can count on losing a signal once you get off the interstate unless you are in a large city. By contrast Verizon and AT&T work almost everywhere. I like speed and great handsets as much as everyone else, but if I can’t get a signal what’s the point? If my work didn’t give me a free phone I wouldn’t be using T-Mobile.

    • Bob

      You see, that is a major perception. And in your case it is true and T-mobile needs to work on that. But it is not that way everywhere. I am in Bartow Florida in about the most rural area you can think of. Across the street from me are fields of grazing cows as far as you can see. I am in the middle of cow country. I am far away from any interstate. But yet, here I have a full signal. I can use my phone anywhere in my home and never have a dropped call. So the perception about T-mobile is there but it’s not the reality and they need to work on that.

  • JD

    While low pricing is a major perk for TMo customers and prospects, the shift to smartphones and data plans is something that TMo could lead the market in. Obviously an improved selection of phones would help bring in and retain customers. However, if TMo wants everyone to move to a smartphone, they could really make waves by offering an unlimited web family plan. I have 5 lines on my account, but I can only afford to pay for 2 data plans. If they had a $50 family plan + $15 per extra line (or something similar), I would jump all over it. They already offer unlimited talk + text for families, so web seems like the next obvious move.

  • RWWackoStu

    I dont think I will be leaving TMO because as a 7 year customer no one else can beat the pricing I am grandfathered in to. That being said, TMo is getting it’s ass kicked because people see it as having crap phones. It gets the crap android. It gets the crap blackberries, or gets a good one later then everyone else. It dosent have the power to pull a Death Star type of exclusivity with Moto or RIM for a real high end, blow you away phone. You need to get new customers, but you also need to keep happy the ones you already have. Current customers who are happy are the best advertisement you can have.

  • firebird

    I agree coverage is an issue in some areas. But in this case, the bleeding seems to be from prepaid. Um, hello? Tats not any of the reasons mentioned here. Prepaid customers don’t use smartphones, aren’t affected by family plans, etc. Prepaid customers had options at other companies for more aggressive plans which are now available at T-Mobile, such as unlimited talk and text for $50 per month. That’s all it was. Didn’t you read the article? It said that prepaid customers churned because of the better prepaid offers at other companies.

    Whine whine whine. The phones have improved dramatically in the last couple of years and most customers are finding phones in the stores they are excited about. Other than leaving for the Iphone, phones are not an issue except for the occasional really picky person.

  • sd

    Of T-Mo’s millions of customers, 99.999999% of them are not hanging out on phone blogs and forums. So let’s quit thinking that what WE would want to see Magenta fix will take care of T-Mobile’s obviously bigger issues.

    The vast majority of my family — and many of my friends — are not phoneaholics. Several relatives tote around Blackberries and have only the vaguest idea of what they can do beyond voice and texting. Most T-Mo users couldn’t tell the differences between a Vibrant and a vibrator, never mind how a Vibrant differs from other smartphones and why it’s cool that T-Mobile offers it. They’ve heard of the iPhone, and they probably would go for one if T-Mobile offered it. But that has more to do with the iPhone’s iconic status and popularity than a detailed examination of why it might be a better phone for them than, say, an Android phone or even a “feature” phone.

    You see, this market is heavily driven by experience. One bad Samsung phone and they won’t choose that brand again. If someone’s entire family (or their kids) have a particular brand or phone OS, they’re likely to go for that one because they have someone who’s tried it (and liked it) and who can help them if they have questions or problems. That’s what sells Windows on home computers; that’s what sells Toyota Camrys, and that’s what sells dinner at Olive Garden. It’s got nothing to do with ultimate suitability for purpose; it has to do with not making a bad choice. So offering eight flavors of Android and WinMoPhoSo7 (w/e) really doesn’t buy T-Mobile anything with most customers beyond us.

    This market also is driven by cost. If T-Mo pushed their prices up to Verizon levels, they’d dry up and float away fast. I wonder what kind of success T-Mobile would have emulating another huge German company — ALDI — in offering products (in ALDI’s case, groceries) at rock-bottom prices through a limited selection (most of the stuff you need and little you don’t) and friendly (but no-frills) service. Even More Plus was a shot in that direction, but most Americans are not used to shelling out several hundred dollars for the phone up front — even if they make it back in less than a year. It’s just not the way Americans have been trained to buy things. But Magenta could offer one or two Androids, an iPhone, maybe a Symbian phone, a couple of BBs, a couple of texting-first phones, some really simple phones [for people like my wife who need a cell phone but really don’t want to use it], and maybe some varieties like the Garminphone, etc. Granted, betting your business on low cost is a risk. It’s not like T-Mobile can offer much else that’s really exclusive (national coverage, broadest line of phones, most sales sites, etc.).

  • Davidohio

    Look, i think we can all agree that t-mobile needs to get better phones and android devices. They have a great network and in the 8 years i have had them, i can literaly count how many calls i have dropped on one hand. They have finally started getting decent handsets. Not great ones but much better than before. The gravity t is pretty cool and so is the vibrant. I think this next two quarters we will see some pretty cool devices show up on t-mobile and that will be the begining of moving up the ladder!

  • Relikk2

    It seems like some of you are just uninformed when it comes to this stuff. I will blame T-Mobiles terrible marketing. Some of you are saying that the problem is t-mobile’s phones and though they have fewer smartphones then some of their competitors T-mobile currently has the most powerful phones available. The HD2 is by far the most powerful WM phone available. The Vibrant is by far the most powerful GPU phone available. The Nexus is by far the most powerful CPU phone available (if running 2.2). This is not an opinion this is bench marked facts. When Vibrant gets Froyo it will probably be the most powerful phone available. The Vibrant absolutely destroyed the EVO in every category, and even beat the Droid X. Some of you keep touting about Sprints EVO, but in reality the EVO sucks. All I can say is it’s not phone power that T-mobiles lacking, but maybe options. I personally don’t understand the appeal of FFC and flash’s, or 8 MP. Unless your printing posters off your phone most of these options are just gimmicks.

    Benchmark test

    • AndroidLover

      OK, to offset your arguments:
      – “The HD2 is by far the most powerful WM phone available.” Perhaps, but it’s still WM. Even the early hands-on previews of WM7 are hopeful but skeptical.
      – “The Vibrant is by far the most powerful GPU phone available.” Yes, it’s fast. It has a lot going for it, and if nothing else comes out in the next couple of months to replace my aging G1, it WILL be my next upgrade. It also has some serious GPS issues that we need to depend on a company like Samsung, who doesn’t have the best track record of supporting their phones (Behold 2, anyone?) to fix. Not counting included software, it has the least functionality of all the Galaxy S offerings across the carriers (no FFC, no QWERTY, no flash, etc.).
      – “The Nexus is by far the most powerful CPU phone available (if running 2.2).” Also has GPS and other issues, and is no longer available.
      – “I personally don’t understand the appeal of FFC and flash’s, or 8 MP.” Well, these are subjective, sure, but many people do understand them. FFC is probably a gimmick now, but so was texting at one point. I personally have a huge DSLR camera that I don’t want to have to lug around at all times, and having a decent camera phone is very convenient. If there is one area where the iPhone 4 slaughters the competition, it’s their camera. They include a flash, but only have 5 MP. But their technology makes such good use of light that it doesn’t need 8 MP. Other 5 MP cameraphones haven’t figured this out yet, so take crappier pictures.

      You’re also basing your argument on 3 phones that have taken a year to come out. Had the Vibrant just come out, your argument would be SUBSTANTIALLY weaker. Meanwhile, Verizon has kicked out 3 powerhouse phones in the past 3 months. This is what causes T-Mo customers to cringe. You say they want options – absolutely. Our current phone options are very low.

      • Relikk2

        I see your argument, and agree with you on some of it. My worry is that a lot of people see these numbers (8mp) and gimmicks ( Sprints 4G) and feel like their loosing out. In reality it’s a bunch of hoopla that most don’t use. Obviously it all comes down to a matter of opinion and what works for your life style. The three phones that Verizon kicked out are just basically the same phone with a new name. The EVO doesn’t do much either. I’ll give “props” to the Droid X but most of these new phones are just Nexusone clones. Hardware wise the only phone that really changes anything for Android at this moment is the Galaxy S. The only difference (I suppose to you and other is a big difference) as you stated is the other phones have FFC, flash and qwerty. IMO the flash is mostly useless and picture quality is very similar between all the phones except the Iphone4. I agree with you on that. Iphones 4 camera is impressive. But the Vibrant’s camera is still decent, especially for what I assume most people use it for (facebook, and picture viewing on the phone). FFC, will be useful one day but I don’t think it will take off until the next generation or two of phones. Most networks are not fast enough to support FFC (without WIFI). So for now, for most people it’s useless (yes, I’m sure that there’s someone out their using it right now). I was disappointed that Qwerty wasn’t included but since I started using SWYPE I don’t think I would break out the keypad. I’m really getting tired of writing this. This is really becoming a Vibrant review!! LOL. GPS works fine for me and I’m happy with this phone. I hope that one day Tmobile can offer a phone that fits the needs for everyone.

  • Relikk2

    Sorry to keep going on about this but,

    I pay $119 a month for two phones ($60 per phone);
    1500 minutes (free Nights/Weekends, unlimited mobile to mobile), unlimited web, and Text. I live in a HSPA+ area. My connection is between 3.5 to 5 mbps. No other provider comes close to that price.

  • Pat

    Ok people lets face the real issue here. WE ARE IN A DOWN ECONOMY!!!! There are a lot of people who have no work! People have no money to buy food. There are lines for food stamps! Some of you just worry about the fancy phones and how fast they are, but look at the real picture. Is a family who has lost income going to keep their cell phone service and get a smart phone or buy FOOD for their kids, shoes for school, find a place to live if they have lost there home. And all Some of you just want the best ever, fastest ever, etc. Let’s be a realistic and not hide under a bushel!! Just remember if there is no work there is no money.

    • Perry

      I agree Pat but let’s look at reality. While unemployment is up around 10% and many people are in fact hurting the truth is the majority of people are working and spending. People are still buying cars, televisions and going on vacation. Computer sales are up also. So we can’t use the economy as the reason Tmo is losing customers.

      The lack of high end devices causes many people to run to another carrier. Like I said in another post, Tmo does’t have an exclusive “must have” phone. The Vibrant doesn’t count as every major carrier has the same phone in some variation.

      That complied with the fact that the majority of Tmo android phones are running outdated software also factors into the equation. Isn’t it ironic that the first carrier to offer android is now on the bottom of the android bandwagon? It was those early Tmo android adopters that made android what it is today. What do you think happened to those early adopters when they saw phone after phone come out from other carriers, all better than the android device they had. Many of those folks are the ones who jumped ship and went to other carriers.

    • Bruce Banner

      So you blame the economy for tmobile’s woes, yet the 2 most expensive and largest carriers as well as sprint gained subscribers. Can I have some of what you’re smoking?

  • nell_z

    Why T-Mobile won’t up the 3G coverage puzzles me. They spend all of this money on HSPA+ before an HSPA+ phone arrives, and yet their 3G coverage sucks. That CEO seriously can’t get the boot fast enough.

  • wantspeedindc

    Hey geniuses, how about a commercial about your network speed and new devices?

  • morecoverage

    T-mobile needs to work on getting more coverage and better signal. That’s main reason they continue to report losses. Sure they are good in metro area but once you hit rural areas like NE PA(poconos) or off the interstate there is little or no service.

  • Perry

    Been a loyal Tmo customer for over a decade but I’m actually surprised the results are as positive as reported. I was expecting worse.

    As the first to bring android to the table Tmo is languishing pathetically behind the other carriers. Every other carrier has their android devices on version 2.0 or better while the majority of tmo customers are still in the 1.6 or 1.5 world. Why? A recent report of android shows that Tmo is responsible for the majority of handsets not running some flavor of 2.x android.

    Besides the Vibrant what other “must have” phone does Tmo offer? Verizon is eating our lunch in that area with the droid, droid incredible, droid X and soon to be droid 2. 4 phones that beat anything tmo offers except for the vibrant.

    Crappy midrange or lower scale phones hurt the bottom line. The Vibrant is also a non issue since all the carriers are getting their own version so Tmo can’t brag it has something the other guys don’t.

    I love Tmo and want to stay loyal but the fact that my MT3G is still running android 1.6 is a thorn in my side. I have actually looked at other carriers but decided to stay with Tmo because of the service which once again is tops and of course the pricing which is also good.

    Our marketing sucks the big one too. I see tons of EVO 4G commercials and various droid commercials and even some AT&T commercials but almost no Tmo spots. And the new Vibrant commercials are actually Samsung commercials not Tmo’s.

    Get with t he program guys. High end phones create buzz, generate revenue and increase subscriber base. And last but not least SOFTWARE UPDATES ON A TIMELY BASIS!!!!

  • Barry

    Sprint did gain a profit last quarter for the first time in a longtime. I wouldn’t necessarily list sprint’s phone selection as a pro either I’d list that in the category of. *sprint=evo at&t=iPhone* last quarter is simple mt3gs<evo mt3gs<incredible/DX mt3gs<iphone4. Maybe if the slide and the vibrant had reverse launches these numbers maybe different who knows? Idk if we're simplifying things more than what they are but isn't it as simple as better high end phones, better coverage, and better marketing.

    *I have the best idea how to market the hspa+ also*

    • ItsMichaelNotMike

      Sprint made a profit? I think you are confused. They gained subscribers for the first time in a long time, not a profit.

      Here’s Sprint’s announcement, that you can compare with T-Mobile’s. Some of it is insightful in figuring out what’s going on, trends, the future, etc.

      Also, what Sprint mentions also applies to T-Mobile, for example, during the second quarter the iPhone debuted. That affects sales, you know.

      Some of you need to read this stuff instead of talking through your butt and pretending to know what you are talking about.

      And you can bet T-Mobile executives read this, to stay up on what the competition is doing.

      From Sprint Connection – Kansas City:

      For the first time in three years, Sprint Nextel’s second quarter earnings report showed growth in subscribers on contracts.

      Still, the company continued to lose money, $760 million on $8 billion in revenues. The news came in the releasing of its earnings report for the second quarter of 2010.

      Sprint added a net 111,000 subscribers from April through June, in large part by staunching the loss of customers to other carriers. In the same period last year, Sprint lost 275,000 customers.

      In a conference call with analysts, Sprint executives championed improvements in independent assessments of its customer service. That, they said, will continue to reduce what the industry refers to as “churn,” or the rate at which customers cancel service. That turnover rate has dropped to a lowest-ever 1.85 percent, down from 2.05 percent a year earlier.

      “There’s a lag of brand with respect to improvement in customer services,” said chief executive officer Dan Hesse. “We still need a lot of good work to get that message across to people who have never been our customers. The Sprint of today is very different from the Sprint of a few years ago.”

      Yet the firm continued to lose its most lucrative customers, those in the so-called post-paid sector who sign up for two-year contracts.

      And while Sprint lost 228,000 customers in the quarter, that’s far less than the 763,000 it lost in the same spring period last year. The biggest drain on its customer base were the ongoing exodus of users on the Nextel network and the end of its acquired Helio service. That cost Sprint 364,000 customers.

      Hesse said he expects the losses to diminish throughout the year. He said the company has made progress with customers with simpler pricing plans — single prices for unlimited calling and data, for instance — that reduce calls for customer service, less frequently lead to customers walking away from unpaid bills, and sometimes nudging users into higher pricing categories.

      “Customers will pay a premium for simplicity,” Hesse said. “Our bundle plans are helping us with brand, with churn.”

      Sprint offset the continued but diminishing losses of contract subscribers by boosting customers in the growing pre-paid market and by selling service on its network to wholesalers. The company this year refined its branding strategy to create different plans for various demographic groups who prefer generally cheaper pre-paid service.

      Growth in its prepaid business should climb as the company doubles the number of Wal-Mart stores carrying its Common Cents Wireless bargain brand by the end of August, the Sprint executives said. Dan Schulman, the soon-departing president of Sprint’s pre-paid division, said a shortage of handsets stymied sales for Virgin, Boost Mobile and other brands owned by Sprint.

      “(But) we’re fully in stock now,” he said. “That inventory restraint has been lifted.”

      The quarter was boosted by the launch of the company’s HTC Evo 4G, the first handset in the country that could take advantage of the companies fourth-generation, broadband data network. There, the shortages of handsets has continued. Hesse said he has been pressuring manufacturer HTC to boost production, but that has been difficult in the face of global shortages of electronics parts.

      He also conceded that in the current quarter the company has come up against AT&T’s release of the iPhone 4.

      “We do feel it when there’s a new iPhone out there,” Hesse said. “We’ve mitigated that impact by having our own plan and handsets.”

  • Roger

    What tmo need to do is make their service compelling. For instance make some number of text messages (eg 30) be a standard part of every plan so that people use them and get hooked. Make data (but limited to a slower speed) part of every plan too, again to hook people on that.

    Look at what Google voice does and provide the same functionality. We want to be able to access voice mail from other places in addition to the phone. We want to be able to block particular callers. We want multiple phones to ring.

    They need to get people hooked on this kind of stuff and then try to sell them on bigger packages.

  • mario

    Funny how prepaid numbers nosedived when they stopped paying commission to managers for them, so managers could care less about prepaid sales. At least contracts moved the right way.

  • http://soapboxuniverse.blogspot.com/?spref=gb K. Ray

    In reviewing history let’s look at what the main focus is. T-Mobile started the Android ecosystem. Most people think that Andy is bad because of the cheaper phones being sold. Magenta has lost the position of innovation by not being first with the new phones. If Magenta gets the Iphone, that will not be enough to improve the numbers. I feel that there must be a combination of better marketing and obtaining class leading phones first. They need to stop saying 4G like. They just need to say our test show the phone can do…. Magenta needs to aggressively continue to improve their network and work on the phone selection. The other side is Google needs to examine the specs for the Ecosystem and have a more unified system for the phones so we don’t have a phone coming out with updates every 12 seconds. I think if they made updates be scheduled to quarterly updates unless there is a sever problem this could help.

    • Bruce Banner

      You sound like a damn fool trying to put any of tmobile’s problems on google. Its not google’s fault that tmo only wants to focus on family plans and mid range phones(mytouch line) that they want to pass off as a flagship line of phones.

  • jmts80

    I have been with T-mobile for over 5 years now and have no plans to leave them but seriously something needs to be done ASAP. I understand they have made a living selling mid level devices to tweens for a long time but it is no longer working! I like HSPA+ but how about decent 3G coverage first, I get 3G on one corner of my bed and EDGE on the other that is unacceptable! I live in Phoenix, a major metro area, my data coverage should be constant but it is so spotty using the internet on my phone is a chore not a pleasure! Better phones are desperately needed. The Vibrant is a good start but we need more!

  • artcarney

    I’ve been with T-Mobile ever since they came to my area of Maine in the late 1990’s. I like their plans, I still have one of the old Faves plans.

    But it doesn’t matter so much what phone you have (I have a Nexus One) or what great things your carrier is doing in major metropolitan areas if their network isn’t so good in your area where you live. Oh, I get great reception and all, but it’s all GPRS. That’s worse than dial-up!

    Literally all the major carriers 3G in my town and the town where I work. Even though I’ve been a faithful customer unless T-Mobile improves their network before my contrat expires, then I’ll jump ship to another carrier.

  • Ryan

    People left due to the iphone and the evo. plain and simple. Read the blogs and go into some stores. Tmobile dropped the ball. How can we promote the fastest network and not have a phone with the balls to run on it. Just doesn’t make sense. its like buying a corvette and not putting gas in it.

  • Jimbo

    Tmo is fine I think trully what will turn it around don’t look at 3g and expanding that just expaned coverage good ol cell coverage I mean towers are not pricy I built my own for 1500 and got cell service were ever I go

  • Eli

    What does T-mobile need? Iphone 4!

  • mar11974

    Prepaid data!
    Tmobile is falling behind in prepaid offerings, look at Virgin Mobile Beyond Talk plans.

  • George

    Well if rumors are TRUE, TMO has some great phones coming so hang in there.

    Everyone complains about the phone line-up Well what do these other companies have that are so great ? HMMMMM

    Sprint – EVO & Samsung Galaxy S – thats IT the rest of sprint’s lineup of phones SUCK.

    Verizon – Droid X and Droid 2/ samsung galaxy s,incredible( if they ever get it in stock) I won’t list original Droid cause its discontinued? what else? NOTHING

    AT&T – IPHONE/s, samsung galaxy s and ??? ok

    TMO – Samsung Galaxy S, MYT slide, Htc HD2 …..ughhh

    So don’t just rant & rave about TMO’s lineup cause these other carriers phone lineups are much better .

  • Housetek

    its not just devices or rate plans. theres a huge part of why they are not making money that no one else really mentions.

    the fact that in the past years they’ve been butchering employee perks and commission bonuses. Years ago employees would get upwards to 150% or higher, now if we dont hit a certain goal our commission could actually drop under 100%. Also they promised all employees a new “better commission” for this quarter, but they never did. So most employees dont even give a crap any more.

    Employees get paid a 1/3 of the commission the use to get in 09.

    They are the ones selling phones and plans and pushing out contracts.

    When a company like htc or RIM gives incentives to sell their product for a month, like a free new phone or something the amount of phones that goes out the door for that company is insane.

    but now its just another mediocre job to most people and people tend to try less.

    • hi

      while it sucks tmobile has been screwing you….it has absolutely nothing to do with the numbers. I don’t care if you had to pay tmobile to work there…..if they released something like the iPhone (with its built in advertising) or EVO, the people would come in droves

  • Jabombardier

    Everyone forgets there is a lot of red tape to put up towers in places where they don’t have coverage. Also when it comes to the mechanics of this 3G build out, they to make sure that the network is reliable through testing before they just put it up. If the the 3G performance was crappy and performed poorly compared to the other’s networks then it will be something else for you to gripe about.

    The performance of T-Mobile is a combination of things. It is people hell bent on getting the latest phones who leave, it is experience in drop calls if one has too many, because of the economy some people just cancel their contracts or plans, it’s people who think a deal is better somewhere else and leave, another company has unlimited prepaid at a good price, etc. It is not solely based on having the most powerful smart phone alone. Still people more than most have a regular feature cell phone than the smart phones. And it likely will not change because the regular feature phones that mimic the tasks of a smart phone at cheaper data plans are starting to exist. I.e. at my job, majority of people have a regular cell phone because they more care about talking and nothing else. Further more they don’t want to spend more money than they have to.

  • George

    So don’t just rant & rave about TMO’s lineup cause these other carriers phone lineups aren’t much better .

  • derrickps3

    that was a long read, lol

  • http://forums.tmonews.com t1 connect

    tmobile has one problem that time and time again ppl keep saying and they just don’t do. advertise your products. i bet some business ppl would love a cheaper bill and faster internet speeds, but how the hell would they know…i bet vzw is gonna advertise the crap outta lte data when available.

    • Mytouch81

      t1 connect you are absolutely right. Im tired of people saying the they need phones like the Evo or the Droid. T-Mobile puts out the BEST phones time after time. Sprint, Verizon, or ATT get lucky once or twice with great phones. Its already been proven that the T-Mo 3G network isnt that far from Sprint’s 4G. Besides Sprint, ATT and Verizon make it diffcult as hell for you to own one of these “High-End Phones” they carry

  • Will

    YES! I’m glad I could be one of those customers that left!!!!!

  • Mytouch81

    T-Mobile USA doesnt have good executive leadership if you ask me. Deutsche Telekom is a GIANT company. out of the companies they own, T-Mobile USA does the worse. T-Mobile USA has the best device if you ask me, their 3G is the best in the states and as you already now customer service is A+++, so that show the customers are happy so the Problem must lay in the executive sector!!!

    • 30014

      Tmobile 3g is the fastest but definitely not the best. Due to the frequency it has terrible penetration. I get around 3 Mb/s download speeds but that’s no good if my phone drops to edge if I look at it the wrong way. They need to find a way to increase signal strength.

  • Chuck

    flat out…get better coverage…build more towers…they claim they want to be the carrier for the families, but grandma and grandpa can’t get their coverage out in the more rural areas, so they lose 20+ activations because of this. True story, I tried to save my family money when I worked for T-Mobile, but my grandma had 0 coverage at her home (SOS mode only). The result is my mom, dad, brother, 2 grandmas, 1 grandpa, 4 uncles, 4 aunts, and 7 cousins are still with verizon. Despite possible savings, they are still all verizon as I am back to them now too. I don’t know if DT is just thinking it will work just like Germany as far as covering mostly metropolitan areas, but in America that simply isn’t good enough. This is how this is going to play out. they were #4 when they started. #4 after launching 3G. Still #4 after launching HSPA+. Einstein defined insanity as doing the same thing over and over and expecting a different result. T-mobile cannot simply expect to upgrade wireless technologies and move up from that #4 spot. They need to expand coverage not upgrade technologies every other year.

  • Hmm

    Tmo will flop with WM7, they do no marketing. They are promoting family plans and that’s their focus. They’ve chosen the rate plan route and not the phone route. Yes android phones are outselling iphones/apple os now. But how does that compare in reality. One phone v.s. how many android phones?

    Tmo flopped with the G1, the mytouch, this new Samsung, I mean no commercials that I’ve seen. If sprint is adding customers they will turn the loss of money around. They dropped the HD2. If rumors turn true and tmo gets the iphone, I’ll believe it when it happen, then tmo’s numbers will improve.

  • Nick

    Tmo needs to frickin’ advertise more. I very rarely, if ever, see a tmo ad anymore, and when I do, they’re very vanilla… Even sprint has more/better ads..

  • ItsMichaelNotMike

    The bottom line on all this is that T-Mobile is as exciting as a phone dial tone. There’s nothing compelling about the service or its handsets.

    Yes, the Vibrant is here and I have one. It’s the best handset T-Mobile has ever offered and compared to my Slide, HD2, Touch Pro2 and BlackBerry 9700 it’s the best phone I have ever had. (As it should be since this is a July 2010 phone.)

    But turn on the TV, open a magazine, read a newspaper or surf the Net. Ask anyone doing those things to recall ANYTHING about T-Mobile. I suspect we would be hard pressed to find anyone who can tell us something about T-Mobile other than it’s a “cell phone company with cheap prices.” Some might even describe it as the company with “K-Mart pricing.”

    Compare that with stopping someone on the street and asking what the word “Droid” means to them. I suspect just about everyone will respond “Oh, that’s the Verizon phone.”

    And has anyone NOT bumped into Dan Hesse with his 24/7 apology commercials, where he keeps saying “please come back, Sprint has changed, trust me, we are different, and we got some cool sheet too.”

    So as others said, it’s marketing. For whatever reason T-Mobile INTENTIONALLY refuses to come up with a large scale national marketing strategy, a repeat of when they had Zeta-Jones as the spokesperson. Back then people remembered who T-Mobile was because of her mug (and figure) showing up on media every which way we looked.

    T-Mobile’s handsets are fine and it has some exciting models coming up. T-Mobile even has “4G” service coming out (at about the same pace as the competition). But come September will T-Mobile trumpet its “4G” phone the same as Sprint successfully did with the Evo? If history is an indicator, no, it will not.

    Perhaps Germany is raiding the TMOUS’s piggy bank so execs can keep their jobs (placating shareholders and investors assures job retention). To be sure keeping one’s job is preferable over trying to convince shareholders they need to take a large percentage of the profits and invest it in marketing. But that’s like a Washington politician suggesting to a group of gun toting Texans that guns should be taken away from private citizens. Suggesting to shareholders to accept lower dividends is corporate executive suicide.

    That must be it because I doubt with the millions of dollars available that T-Mobile’s marketing people and ad agencies are incapable of coming up with a strong, memorable national ad campaign.