T-Mobile US is one of the largest providers of wireless voice and data communications services in the US. The company's 47 million T-Mobile and MetroPCS contract and prepaid consumer customers use its networks domestically and are able to connect to the compatible network of Deutsche Telekom when in Europe. It also offers low-cost, no-contract mobile services through the GoSmart brand. In addition, T-Mobile sells phones, tablets, PDAs, and accessories from such vendors as Apple, Nokia, and Samsung. It has about 8,000 T-Mobile and MetroPCS branded retail sites. In 2013 Deutsche Telekom acquired smaller rival MetroPCS via a reverse merger and combined it with T-Mobile; Deutsche Telekom owns about two-thirds of the combined company.
Sales and Marketing
T-Mobile markets its services and products via its own network of retail locations, as well as through more than 60,000 third-party retail locations and online. Its largest customer segment (about 70% of revenue) is postpaid subscribers. Prepaid customers account for about a quarter of revenue and wholesale clients, roaming charges, and other services generate the rest.
In 2013 T-Mobile reported about $24 billion in revenue, up nearly 25% from the prior year. The growth was powered by a more than $3 billion increase in prepaid service revenues because of the inclusion of MetroPCS results starting in May 2013 and a nearly $3 billion rise in equipment sales primarily on the introduction of Apple products.
After multi-billion dollar impairment charges in both 2012 and 2011, the company eeked out a $35 million profit in 2013 with no impairment charges that year. Cash flow from operations was down slightly in 2013 to $3.5 billion.
T-Mobile faces stiff competition from much larger US rivals -- AT&T Mobility, Verizon Wireless, and Sprint -- but introduction of Apple products in 2013 put it on a much more even playing field.
The company has crafted a "Un-carrier" strategy to compete with the big boys. It has introduced a line of Simple Choice plans that eliminate annual contracts, as well as caps and overage charges.T-Mobile has also introduced a simpler handset upgrade program and reduced some international calling rates and roaming fees when traveling outside the US.
Another key initiative of T-Mobile's strategy is heavy investment in network modernization to supports its nationwide 4G LTE (long-term evolution) technology. It plans to deploy at least 20x20 MHz 4G LTE in 90% of the top 25 metro areas in 2014 and beyond.
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