"The U.S. used to be a cash cow for Deutsche Telekom," reports the Wall Street Journal, "but it has struggled there since 2008 and has been forced to invest more to keep existing customers and attract new ones."
The report said TMobile "gained 137,000 customers in the September quarter driven by wholesale growth in the prepaid business, bringing its subscriber base to 33.76 million, but the number of more valuable contract customers fell by 60,000 to 26.69 million."
No chance of getting the iPhone in the short term
Chief Executive Rene Obermann said T-Mobile's churn rate in the U.S. is being driven by the iPhone. "Consumers like T-Mobile but they also want to have the iPhone," which T-Mobile USA "has no chance of getting in the short term," the report said.
In Europe, Deutsche Telekom was an early, exclusive partner with Apple in selling the iPhone, but has recently lost its exclusive status as Apple added other carriers.
In the US however, the firm's T-Mobile business can't sell Apple's existing iPhone models at all; even though T-Mobile is, like AT&T, a GSM/UMTS carrier, it uses unique radio frequencies for its 3G service that are not compatible with existing iPhones.
Greater iPhone threat on the horizon
Apple is widely reported to be introducing a new CDMA-compatible iPhone in early 2011 that can be sold by Verizon Wireless, a move that will put even more pressure on T-Mobile.
"Judging by Apple's experience in other markets," the report stated, "adding Verizon could double iPhone's U.S. smartphone market share. In France, for instance, iPhone's market share tripled from 3% to 11% between the first and third quarters of 2009, after Apple went from one carrier to three, says Strategy Analytics. The firm's global wireless practice director, Neil Mawston, says markets like the U.K. have shown a similar pattern."
30 Comments
Perfect headline. Need I say more about T-Mobile?
Powerful statement, which says loads about the pull of the iPhone. I'm sure all four carriers will eventually have the iPhone, but it'll be years before that happens. If iPhone is going Verizon, I'm still unsure as to why Apple just doesn't make the phone compatible for all carriers.
What I do know is if Apple went with all carriers the amount of iPhones sold would be staggering.
In the US however, the firm's T-Mobile business can't sell Apple's existing iPhone models at all; even though T-Mobile is, like AT&T, a GSM/UMTS carrier, it uses unique radio frequencies for its 3G service that are not compatible with existing iPhones.
Yeah, who uses AWS again? If T-Mo US really wants the iPhone, then they should chit-chat with Jobs to do a penta-band iPhone supporting AWS bands. The tech is already out there (Nokia N8).
Oh and Apple, sell the iPhone unlocked in the US please. Many people are willing to live with EDGE on T-Mo, but this AT&T locked crap is bull, considering you are selling the iPhone unlocked in Canada and Mexico.
Nothing is impossible. It seems that Apple and AT&T relationship is not at its best lately. I wouldn't be surprised if the iPhone goes carrier free within the next two years.
Is this the same T-Mobile that currently has an ad on TV ridiculing the iPhone? Funny way of saying "I love you, iPhone, and wish we could be together."
Yeah, I know, the ad is harder on AT&T, but still the thrust is don't buy Apple or AT&T, get T-Mobile and some other phone you really didn't want instead.