& cplSiteName &

Is T-Mobile Planning a Fright Night for Rivals?

Dan Jones
8/9/2013
50%
50%

Don't look now but phase three of the T-Mobile US "Un-carrier" strategy could come as soon as Halloween.

In a research note Friday, UBS Investment Research analyst John Hodulik writes that T-Mobile's subscriber success in the second quarter means "more upside" for T-Mobile's shares, but is a "bad omen" for investors looking for higher margins from the larger wireless operators. (See T-Mobile Adds 1.1M Subs.)

He writes:

    T-Mobile has emerged as an aggressive share-taker far sooner than expected and porting ratios in July suggest the worst may not be over. The Un-carrier 3.0 launch, expected by Halloween, will be another shot across the bow, forcing the larger carriers to sacrifice margins and/or share. Layering on a resurgent Sprint in 2014 makes higher wireless margin estimates start to look like a stretch.


T-Mobile CEO John Legere boasted of having the next phase of the operator's revamped strategy all planned out at its JUMP launch event in July. (See T-Mobile: Might As Well JUMP.)

If phase one of the strategy was to drop contracts and get started on its LTE deployment, and phase two initiated a trade-in program and more widespread LTE, what could phase three mean?

I reached out to Hodulik on this, but drew a blank -- financial analysts don't usually like to talk outside of school.

On the technical side, I expect T-Mobile will likely be covering 200 million potential customers with LTE by Fright Night, and that the first features of LTE-Advanced would be supported by handsets in the U.S. by that time too.

I must admit that I'm a little stumped on what T-Mobile could do further to jazz up its pricing schemes. It seems to me that an even more aggressive trade-in scheme targeting AT&T users might make sense, but I'm really just spit-balling here.

What ideas, readers?

But the real question is -- what the hell will T-Mobile's ebullient and sweary CEO, John Legere, dress up as for Halloween?

As ever, you're welcome to guess away on that topic too.

— Dan Jones, Site Editor, Light Reading Mobile

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/15/2013 | 11:20:30 AM
Re: T-Mobile 3.0
Well T-Mobile at least seems to be deploying in cities rather than Sprint's strange small town LTE deployments. For many, good coverage in the major cities is the priority.
KBode
50%
50%
KBode,
User Rank: Light Sabre
8/15/2013 | 11:08:36 AM
Re: T-Mobile 3.0
Thought it was interesting Hodulik was also weirdly bullish about Sprint in his most recent research notes, even though Sprint's coming in last place in so many LTE speed rankings of late, and their LTE coverage maps have been criticized as being, if I recall correctly, "total fantasy."

I still wonder if these unlimited plan options stick around. Historically I've found that the more companies try to compete with AT&T and Verizon, the more they start acting like them to keep pace. Fewer perks, more weird fees, etc.

Sprint's been doing more of that stuff over the last few years.

T-Mobile seems seriously intent on being disruptive, though I wonder how long that really lasts. It does seem to come down to coverage, and I still don't think Sprint or T-Mobile are anywhere close to AT&T and Verizon out on real-world U.S. highways.
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/15/2013 | 10:18:28 AM
Re: T-Mobile 3.0
Could be! I don't see investors -- as opposed to customers -- loving that though.
milan03
50%
50%
milan03,
User Rank: Light Sabre
8/15/2013 | 3:22:14 AM
Re: T-Mobile 3.0
Actualy UnCarrier 3.0 has to be T-Mobile paying your full ETF, then laying down the ETF financing plan to switch to T-Mobile. They'd make a payment in full on your behalf to the carrier you're getting out of, then you're repaying over 24 months.
milan03
50%
50%
milan03,
User Rank: Light Sabre
8/15/2013 | 1:06:40 AM
T-Mobile 3.0
It'll be very interesting to see what's up their sleeve this time! T-Mobile most definitely looks to be the most disruptive wireless operator of 2013.
timkridel
50%
50%
timkridel,
User Rank: Light Beer
8/13/2013 | 3:58:08 AM
re: Is T-Mobile Planning a Fright Night for Rivals?
From my March 2013 Heavy Reading Insider report:

"There's a strong future for 2G with us," says Rusty Lhamon, T-Mobile USA director of M2M. "In M2M, we see this as something that's expanding as we look at some of our competitors sunsetting their 2G networks, and they're looking for a soft spot to land."
DanJonesLRMobile
50%
50%
DanJonesLRMobile,
User Rank: Light Sabre
8/10/2013 | 9:08:07 PM
re: Is T-Mobile Planning a Fright Night for Rivals?
Yeah, this is the way I see it. Shows you how much the supposed wisdom of the market really exists because I remember Sprint undertaking aggressive pricing schemes before and getting slammed by Wall Street for having deadbeat customers.
DanJonesLRMobile
50%
50%
DanJonesLRMobile,
User Rank: Light Sabre
8/10/2013 | 5:37:41 PM
re: Is T-Mobile Planning a Fright Night for Rivals?
Gotcha, well that was part of the point of the point of the MetroPCS acquisition, get more spectrum for upgrades. Seems like they're upgrading the cities with LTE first though.
Matthew Prendergast
50%
50%
Matthew Prendergast,
User Rank: Light Beer
8/10/2013 | 2:46:16 PM
re: Is T-Mobile Planning a Fright Night for Rivals?
Nah, I think they will offer a similar deal like jump with your current non-t-mobile contracts. Maybe something like, T-mobile will pay off your contract for an additional amount of money a month plus a lower cost upgrade or free phone. Saying something is done ahead of time is nice but John has been announcing major deals, not just "Hey were ahead of schedule!". Whatever it is, it will be for the consumer which is fantastic.
CPPCrispy
50%
50%
CPPCrispy,
User Rank: Light Beer
8/10/2013 | 1:13:54 AM
re: Is T-Mobile Planning a Fright Night for Rivals?
What I meant by my original comment is that T-Mobile has a vast 2G network that they need to upgrade (replace) to HSPA+/LTE and that hopefully they will announce their upgrade plan with phase 3. I agree that no carrier is upgrading 2G but before T-Mobile can move customers off 2G they need to implement HSPA+/LTE network wide.
Page 1 / 2   >   >>
More Blogs from Jonestown
More than a third of poll respondents think that IoT will kickstart 5G.
Like Apple, Facebook, and Google, Sony is examining the possibilities of 5G too.
The iPhone maker is looking for a wireless engineer who can develop hardware using emerging technologies.
Welcome one and all to our new 5G site!
Koontech intros the fire- and bomb-proof phone.
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP’s Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
LRTV Custom TV
Cisco's Innovations in Cable

5|26|16   |   03:18   |   (0) comments


Marc Aldrich from Cisco discusses the latest in security, the evolution and momentum for CCAP and what the industry will be seeing next from Cisco.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
Cisco's Patel Hails 'Microculture' Successes
Iain Morris, News Editor, 5/26/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
AT&T's Margaret Chiosi Retires
Ray Le Maistre, Editor-in-chief, 5/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.