Coming to America: Vodafone to hit the states as T-Mobile MVNO next year

Coming to America: Vodafone to hit the states as T-Mobile MVNO next year
Mobile operator Vodafone will be coming to America as a T-Mobile MVNO, starting in the late fall of 2015. The wireless service will be focused on enterprise customers in the U.S. Earlier this year, Vodafone sold its 45% stake in Verizon Wireless back to Verizon for the tidy sum of $130 billion. That deal effectively removed Vodafone from the U.S. market, with the exclusion of 400 multinational accounts in the U.S. that Vodafone still continues to service. It also takes care of the wireless service for 500 multinational accounts located outside of the U.S. that have a "strong U.S. presence."

It would be quite ironic for Vodafone to be working with T-Mobile, since the two were competitors when Vodafone owned its stake in Verizon. Overseas, Vodafone and T-Mobile parent Deutsche Telekom are rivals. William Ho, an analyst for 556 Ventures, says that the deal will help both T-Mobile and Vodafone. He says that adding the MVNO will put more enterprise customers on T-Mobile's pipeline, whicvh has been a goal for T-Mobile CEO John Legere.

For Vodafone, the deal will allow it to offer service bundles for its customers, allowing them to roam across the 27 countries where the carrier operates. According to Ho, Vodafone selected T-Mobile due to its lower-cost pricing structure. And next year, T-Mobile will have finished the build-out of its LTE pipeline, reaching 300 million POPs.


source: FierceWireless

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17 Comments

1. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Didn't see that one coming.

3. Fallen1

Posts: 288; Member since: Nov 14, 2014

No kidding, but hey they got an extra $130B, might as well try there luck in the market on there own

5. WillieFDiaz

Posts: 127; Member since: Dec 22, 2010

For $130 Billion, Im surprised they didnt offer to buy out part of T-Mobile to control it.

7. milesboy5

Posts: 179; Member since: Nov 07, 2012

Thats what I was thinking

8. Fallen1

Posts: 288; Member since: Nov 14, 2014

They actually did try but Tmobile didnt feel there offer was good enough

16. TheMan

Posts: 494; Member since: Sep 21, 2012

Nah, I think if they were successful in their foray into the U.S. market, they'd consider buying TMO outright. Going MVNO is the least risky way of testing the market. No need to commit to building a network nor to overpaying -- at least until they know they can be successful.

2. Fallen1

Posts: 288; Member since: Nov 14, 2014

Hmmm, should be interesting considering Tmo acquired Metro and ATT getting cricket, Im sure they would do good in the US as long as they offer good plans at reasonable pricing

4. Philipand96

Posts: 103; Member since: Jul 12, 2014

It is the scorpion on the frogs back but in this case the frog is immune to scorpion venom ? It is a win win situation as Vodafone piggy backs in the US, Vodafone does not have the overheads of maintaining an infrastructure and purchases just GSM handsets.. As I am from the UK, I have never understood the 1700 MHZ frequency that Tmo uses, but with Vodafone on board, maybe the 1700 will be standard and no more US versions AT&T should worry at this strategic match up and T-mobile is going it alone. This should make AT&T think and keep it in check

6. WillieFDiaz

Posts: 127; Member since: Dec 22, 2010

Much like why we dont understand 900 or 1800 for you. The US frequencies are different as ours were allocated different times, for different reasons, and over much larger distances of our country. AWS is both 1700 uplink and 2100 downlink. It was the closest America could get to 1800/2100 but combined. It offers decent coverage, awesome speeds and about the same capital to roll out as a regular 1800 or 1900PCS network would.

17. zacsaturday

Posts: 262; Member since: May 09, 2014

we don't have 900, we have 800,1800 and 2600mHz (if you are talking about LTE/4G, at least)

9. unklmik

Posts: 14; Member since: Dec 01, 2014

Just wait till those Vodafone customers get 15 miles out of any urban area in the U.S. and have no service. I honestly hope T-Mobile can get some low band spectrum...........don't see that happening until about 2017-2018, if the.

11. Salazzi

Posts: 537; Member since: Feb 17, 2014

False. T-Mobile already acquired a sizeable amount of 700mhz spectrum (https://sitesDOTgoogleDOTcom/site/cellularbinder/​t-mobile-700a-spectrum) and is in the process of acquiring more spectrum from Verizon (http://wwwDOTphonedogDOTcom/2014/12/09/t-mobile-a​nd-verizon-want-trade-spectrum-again) , let alone the fact that they will be participating in the 600mhz spectrum bidding in 2015. They have already begun implementing the 700mhz in some of the areas where they now have the licenses, but most will have to wait until they have a phone which supports the band (as only approx 3 currently support it). By the end of 2015, I'd expect them to have 2/3 of america covered by low freq spectrum while they put up more cell sites to broadcast the 1700/1900/2100 bands.

10. unklmik

Posts: 14; Member since: Dec 01, 2014

Sorry, then.

12. Planterz

Posts: 2120; Member since: Apr 30, 2012

Weird turn of events, but money talks louder than grudges.

13. Landmarkcm

Posts: 507; Member since: Aug 11, 2009

Does anyone know for sure. Does Tmobile still not allow short code messaging on their MVNO's?? I always though that was strange.. Or there are very few that do have it like Tmbobile post does. Another thing I found annoying was that there is no call forwarding on Tmobile's own prepaid as of right now for services like YouMail, (which I love). Needless to say I am on their postpaid now & it's fine, Just curious for future reference.

14. Augustine

Posts: 1043; Member since: Sep 28, 2013

It makes sense, since the CDMA plantation is an American thing, while Vodafone customers enjoy the advantages of a global standard instead.

15. roldefol

Posts: 4744; Member since: Jan 28, 2011

Yeah, Vodafone always seemed an odd partner in Verizon.

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