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T-Mobile German owner claims US model is unsustainable

Posted: January 22, 2015 by David Curry

T-Mobile USA has been on the up-and-up in 2014, adding 8.4 million new customers to its service and generally being a nuisance to all other U.S. carriers with its low prices and incentives.

Its German owners still do not believe in CEO John Legere's plan however, calling the current "Un-Carrier" model unsustainable, if Deutsche Telekom is to invest $4 to $6 billion per year on spectrum and advertising in the U.S.

The company simply isn't making enough profit to warrant Deutsche Telekom's commitment, even if 8.4 million new subscribers in one year is excellent for the fourth largest carrier.

Deutsche Telekom claims T-Mobile USA is still open for sale and hopes some other company takes it off its hands, after the Sprint acquisition fell through in mid-2014.

Legere responded to claims Un-Carrier was unsustainable with his usual gusto, calling the claims "bullshit". He followed up by saying the owners know what they're doing, and it was simply an error from Deutsche Telekom.

It is worrying to see so little interest from the German owners in regard to growth, especially since at the current rate T-Mobile might be able to compete with Verizon Wireless in 2018 (Verizon added only 5 million new subscribers).

The question is really in 2015 how well can T-Mobile perform. Will it be another excellent year, if will we start to see cracks on the formula, as T-Mobile runs out of ways for users to save on bills.

T-Mobile has been a force for good in the wireless industry, but Sprint is ready to undercut, AT&T has shown it can compete (in some areas) and Deutsche Telekom is not prepared to invest over Verizon and AT&T on spectrum.

Sprint throws its hat in support for Title II net neutrality

Posted: January 20, 2015 by David Curry

It looks like telecoms are starting to give up the battle against net neutrality, with AT&T and Verizon claiming earlier this month that network management can be covered under Title II 'common carrier' practices, even though the law is currently not in place.

Sprint has joined the debate, throwing its hat publicly in support of stronger net neutrality laws, as long as these laws do not affect network management.

The move gives Sprint free press, showing it is willing to side with the consumers rather than telecoms. It also puts T-Mobile's savior John Legere in the spotlight, currently opposed to Title II reclassification.

Even though Sprint does not mention T-Mobile, ever since CEO Marcelo Claure took over Sprint, he has been fighting to win back Sprint's reputation for pro-consumer ideas and plans.

Sprint has little to lose by supporting Title II reclassification on broadband providers, since it does not actively own a broadband company. However, the company may be less inclined to support net neutrality when it hits wireless networks.

Verizon and AT&T both have large investments in broadband, and Deutsche Telekom has various broadband investments worldwide, which could be effected by Title II reclassification.

Title II reclassification focuses on making broadband companies a utility, putting them in the same group as telephone companies. It allows more legislation control over broadband, reducing risk of companies implementing new revenue generators on the internet.

One of these revenue ideas concerned a "fast-lane", which would allow priority service on the internet. Verizon originally pushed this discussion, and is now being burned for it.

The FCC will make its net neutrality decision known in February, but before that the Republican party will push its own net neutrality legislation into Congress, hoping to catch the FCC early.

Source: Sprint Letter to FCC