Lines at T-Mobile stores show Apple’s clout

The iPhone 5 is six months old. That isn’t stopping happy T-Mobile subscribers from lining up to get it as part of the T-Mobile’s bold new pricing and marketing plans.

People were lining up outside of T-Mobile stores this morning across the country. The hype is what one would expect of the launch of a new device, not an aged device adding a new carrier. It demonstrates the popularity of Apple, but is this good news going to translate as well for T-Mobile?

Perhaps the real test will come when the carrier pushes forward head to head with the other carriers with the Samsung Galaxy S4, set to launch May 1. If their marketing techniques are aggressive pricing plans resonate, that will tell whether or not it can really move the needle for the fourth largest service provider. The appeal that they hope to resonate centers around no contracts and paid-out purchase plans. Rather than sell the iPhone 5 16gb for $579 like other carriers, they’re pricing it at $99 down and $20 a month. It’s the same overall cost but by allowing their customers to make payments without making them sign long-term service agreements, they hope to get people to switch.

It’s a risky move, but if the lines are any indication, their message is at least reaching the consumers. Early indications are that it’s working at least to some extent; last week they announced 579k new users in Q1.

T-Mobile’s Carly to dump pink dress in favor of leather and a Ducati motorcycle

The best mobile spokesperson for the worst mobile carrier is dropping the pink dress that helped to make her so popular in favor of black leather and a Ducati motorcycle as T-Mobile tries to do something (anything) to rebrand themselves as a player in the mobile industry.

23-year-old mobel Carly Foulkes has been one of the few bright spots in T-Mobiles marketing over the last couple of years, drawing in fans to her personally while attempting to expand the brand’s image. It hasn’t helped sales as much as they’d hoped, mostly because of issues not associated with marketing.

Fans of the model will be in for a surprise as they launch the No More Mr. Nice Girl campaign soon.

“We’re working toward a brand refresh later in the year,” T-Mobile senior VP Peter DeLuca said in an interview. “We really can’t wait until the end of the year to make some noise in the market.”

Before she goes leather, here’s a glimpse of her at a T-Mobile event earlier this year.

Who will buy T-Mobile now?

The unraveling of the AT&T merger with T-Mobile was not entirely bad for the fourth largest mobile carrier in the US. They get $3 billion. It isn’t enough to keep them afloat for more than a year or two, but it does buy them time to find someone else. It gives them time to formulate a plan-B.

Unfortunately, they don’t know what plan-B is for them. It was shortsighted of Deutsche Telekom to go into this without a plan-B. Putting all of one’s eggs in a single basket makes no sense when so much as at stake. The company has to regroup quickly.

First, they have to make themselves valid by improving the infrastructure. AT&T had it already so there was no need to focus on building up. That, of course, didn’t work out.

“In the long term, we need more spectrum and network capacity,” said Deutsche Telekom Chief Executive Rene Obermann. “We are working on that. But we will not speculate about any inorganic steps or deals.”

They might not be willing to speculate but the rest of us will. We have to. The company thinking “long term” by improving their own infrastructure is not really thinking at all. If anything, they are simply trying to increase their own value by such actions.

“Stabilization is the first step and then it’s about finding a new partner in the medium term,” said Wolfgang Specht, an analyst at WestLB AG in Dusseldorf. “In the long run a standalone strategy seems impossible. Everything from here on is only a second-best solution.”

Who can fly in and be the valid second-best solution? Here are some possibilities:

Sprint

It’s hard to imagine a situation in which the government would block one carrier from buying T-Mobile only to allow another later, but if they would be willing to do it, Sprint is the only option. It would be a last resort; the goal is to have 4 major carriers, not 3. Sprint, being a distant third behind AT&T and Verizon, would be an alternative better than losing the T-Mobile option altogether.

There have been technical incompatibilities that have prevented the two from working together in the past, but this has become less of a challenge with recent upgrades to the infrastructure and software.

Is this a likely scenario? No. Is it feasible? Yes. Is it desirable? To current Sprint customers, probably not as T-Mobile brings little in the way of value other than spectrum. It has a weak 4G network, and therein lies the more likely scenario: a partnership between the two companies that keeps them separate but that gives them strength against AT&T and Verizon. In this scenario, there would still need to be a buyer for T-Mobile, which could be…

Dish Network Corp

Dish is in an odd position. On one side, it’s being named as a possible acquisition target for AT&T. On the other end, they are a possible buyer or partner with T-Mobile. At the center of their situation is billions of dollars worth of wireless spectrum they acquired earlier this year as part of deals for bankrupt DBSD North America Inc.

For AT&T, they represent a consolation prize. Shares jumped 9.1% yesterday behind those rumors.

Buying or partnering with T-Mobile is an option for putting their spectrum assets to work because of the relative weakness the company has exposed. It would mean jumping into one of the most competitive industries out there and starting from way behind the leaders, but if the deal is good enough, why not?

Many look at their involvement as a waiting game. Their value in AT&T or Verizon’s eyes will only go up as time passes while T-Mobile’s goes down. If they wait too long or decide to get gobbled up rather than being the gobbler, the long-shot companies might step in grab T-Mobile for the sheer value. Those long-shot companies include…

Google, Amazon, and the other usual suspects

Google is already partially in the mobile game from every angle other than carrier. They bought Motorola Mobility. They have Android. Why not complete the set?

Amazon is a company that’s always looking for value and T-Mobile at a low-enough price might be enough to get them interested.

Facebook has cash and nowhere to spend it. They’ve expressed a desire to get into the mobile business and their relationship with Skype puts them in a position to put a T-Mobile to good use.

Apple, Sony, and Microsoft have to be in the conversation because they always are despite the fact that it simply won’t happen.

Who will buy T-Mobile? Someone has to. The company is unable to stand alone. In the end, it will come down to value. AT&T was able to offer more than the company was worth for market-share needs, but nobody else other than Verizon (which would get blocked faster than AT&T was) would have an interest in a $39 billion T-Mobile.

The option that nobody is talking about is the government itself. An auto-industry-style bailout would be required before the company would be allowed to fail simply because the repercussions would rock the industry as a whole. Thousands of jobs, sold off infrastructure, a “meddling government” tag that Washington can’t afford; if nobody comes in and saves T-Mobile, we could conceivably see a government-owned entity.

If the government took control of a portion of mobile, the conspiracy theorists would go insane.

ATT responds to Sprint’s suit

One might think that AT&T was expecting Sprint to file suit against their plan to buy T-Mobile based upon the speed of the response. With a very aggressive style and stance, AT&T had choice words for their competitors and the attempt to block the formation of a super-cell-provider:

This simply demonstrates what we’ve said all along – Sprint is more interested in protecting itself than it is in promoting competition that benefits consumers. We of course will vigorously contest this matter in court as AT&T’s merger with T-Mobile USA will: help solve our nation’s spectrum exhaust situation and improve wireless service for millions; allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans, or 97% of the population; and result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.

AT&T has enough to worry about with the US Government getting involved. While many believe that the deal will go on once certain provisions and guarantees remain, Sprint is potentially fighting for its life. Apple may be giving them a little hope with the potential for the Sprint iPhone in the very near future, but if the company falls to a distant 3rd once AT&T leapfrogs Verizon, even the iPhone may not be enough to pull in the new subscribers they desperately need.

T-Mobile iPhone 4 in the works

It was bound to happen sooner or later, and it appears that Apple is making preparations for the eventual T-Mobile iPhone 4.

A report by BGR says that a T-Mobile-enabled iPhone prototype has been leaked with some interesting feature speculation. It is possibly utilizing the A5 chip like the one in the fabled iPhone 4S, according to 9to5Mac. The prototype is dubbed “N94” following the Verizon “N92.”

Here are some leaked images courtesy of BGR:

Verizon CEO “Not Concerned” About T-Mobile Merger

In what could be one of the largest shakeups in America’s mobile industry for years, AT&T is seeking to acquire T-Mobile for a sum of $39 billion. It would make AT&T the largest mobile carrier in the U.S. But Verizon CEO Dan Mead isn’t worried.

“We have a tremendous amount of competition in the industry,” Mead stated today while at the CTIA Wireless convention. He is, of course, referring to AT&T and Sprint, which currently remain competitive with Verizon. Mead’s company, at the moment, currently has more subscribers than AT&T; it also helps that the company recently got its hands on the iPhone.

“I’m not concerned about it.”

But is there concern to be had? After all, why would the nation’s largest mobile provider not be worried about losing its top spot? Is it because there would be less competition after such an acquisition? Is it because the weakening of competition could lead to the weakening of Sprint, as well, thus leading to an eventual acquisition of Sprint for Verizon? Is it because the lack of competition could result in higher prices and increased profits for Verizon?

I’m not going to speculate. I’m only asking questions. But I will say that something does seem fishy about the whole deal.

ATT-Mobile: The $39 Billion Deal Will Face Roadblocks

AT&T intends to buy T-Mobile USA from Deutsche Telekom. The deal, which is worth $39 billion in cash and stocks, will take approximately 12 months to close according to sources at AT&T.

It will be scrutinized and there is a chance that it will be blocked. Last year, the FCC declared that they may impose restrictions on Verizon and AT&T to help smaller companies compete during the next spectrum auction. Sprint, the third-largest provider, had been in talks with Deutsche Telekon regarding T-Mobile USA, but apparently AT&T made a better offer.

Last year, AT&T held a tiny lead over Verizon wireless with 95.5 million wireless subscribers versus 94.1 million. T-Mobile had 33.7 million. The Verizon iPhone likely pushed the numbers closer and possibly put them in the lead currently.

If the deal is allowed to go through, AT&T will again have a huge lead over the industry. A press conference will be held tomorrow to shed more light on this development.

T-Mobile and Sprint Considering A Merger?

Rumors by an anonymous source reported by BusinessWeek are revealing that two of the top four U.S. wireless providers are considering a merger. This would combine the third- and fourth-place wireless carriers into one entity and could give both companies a fighting chance against the likes of AT&T and Verizon. It would impact consumers heavily and reduce competition in the States further.

If true, the first question is over the value of T-Mobile USA. While Deutsche Telekom might be interested in selling the entity, getting what they believe it is worth might prove to be difficult:

T-Mobile USA may be worth $15 billion to $20 billion, according to Michael Kovacocy, an analyst at Evolution Securities in London. Sprint’s market value was $13.6 billion as of yesterday’s close.
…
Deutsche Telekom may be disappointed in the price an acquirer is willing to offer, Kovacocy said in an interview. Even though the company may expect about $25 billion, given the unit’s earnings performance, buyers may want to pay less because of customer losses, he said.

The second question is why?

T-Mobile USA operates on a GSM network technology while Sprint utilizes CDMA networking technology. These network technologies are different, thus an acquisition would leave both companies with competing technologies, negating one of the primary reasons for a merger — a better network. The combined entity would be forced to invest heavily in the future of one of these technologies, and it gets even more complex when you consider the 4G technology investments and more.

Deutsche Telekom might be better positioned to compete in the U.S. market if they do merger with Sprint. The terms of the deal are rumored that Deutsche Telekom would control 50% of the combined entity. But from an outside view looking it, it seems like the merger would be costly in the beginning. But in the long term, it might prove beneficial for Deutsche Telekom, one of Europe’s largest mobile providers.

But there are other options on the table, including an investment in wireless spectrum from Clearwire Corp.:

T-Mobile USA is also discussing buying wireless spectrum from Clearwire Corp. as an alternative to a merger with Sprint, two people said. Deutsche Telekom’s Hoettges said last month that buying U.S. wireless spectrum from Clearwire is only one option for the German phone company. He ruled out an outright sale of T-Mobile in the U.S.

Either way, this is huge news for every wireless consumer in U.S. This could have a serious impact on the pricing of wireless data in the future, as less competition would mean fewer incentives to reduce pricing (and Verizon Wireless service is already expensive enough).

Cell Phone Shake Up: A Guide to Picking Your Mobile

The announcement of the Verizon iPhone launching next month has a lot of people considering changing providers. Some are thinking of switching to Verizon to get their iPhone. Others are wanting to leave Verizon for fear that their service will go downhill once the iPhone onslaught begins.

Other than local and regional providers, there are 4 major cell services out there. Which one is best? It’s always a matter of debate and often relies on word of mouth and reputation. Then, there are those who want data. Here it is.

This graphic by Wilson Electronics puts all of the data and presents it in a visual manner. Enjoy!

Via: Wilson Electronics

Sprint

Dish Network Corp

Google, Amazon, and the other usual suspects

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