T-Mobile’s Strategic Plan To Reverse Subscriber Losses
Northern, WI 1/11/2013 (Avauncer) –Recently T-Mobile has been losing subscribers to its competitors Verizon Communications Inc. (NYSE:VZ) and AT&T, INC. (NYSE:T) services. The main reason was that smart phone consumers started using the long term evolution popularly known as LTE. For T-Mobile’s CEO John Legere, it’s indeed a challenge to regain the subscribers. T-Mobile evolved strategic value plan and has started slowly regaining its subscribers. Under this plan the company is allowing its subscribers to buy phones with a faster network in easy instalments. Most probably this plan will work out and more consumers will start going for T-Mobiles and its services.
T-Mobile’s Own LTE Network
T-mobile is also building up its own long term evolution services. These services are expected to be available to about 100 million subscribers by the next year. In another move to expand its business prospects, T-Mobile is going to merge with another company MetroPCS Communications, Inc. (NYSE:PCS) Once this deal happens, T-Mobile’s parent company Deustche Telekom will have a 74% business in the combined venture. T-Mobile will have to shell out a $1.5 billion payment for this deal to MetroPCS Communications, Inc. (NYSE:PCS) shareholders. As of now, regaining the subscribers is the company’s top priority. T-Mobile has also made a deal with Apple Inc. (NASDAQ:AAPL) under this deal T-Mobile would be selling the Apple iPhones through its markets. The iPhones will be available in an interest free environment where customers can buy them easily. They can pay for the iPhone outright or pay in easy instalments. With such strategic plans and value based approach, T-Mobile is hoping to make up for the subscriber loses that started in the last quarters of 2012. A smart iPhone, a speedy network and easy instalment plans may work wonders for T-Mobile and sooner it may regain its subscribers. However the present loss of iPhone to Samsung Inc will also dictate tomorrow’s market.
Shares of AT&T, INC. (NYSE:T) were up by 0.38% to close at $ 34.37
Shares of Verizon Communications Inc. (NYSE:VZ) were up by 1.37% to close at $ 43.59
Shares of MetroPCS Communications, Inc. (NYSE:PCS) were up by 3.62% to end at 9.73