Should Verizon, Sprint and AT&T be afraid of T-Mobile?

Should Verizon, Sprint and AT&T be afraid of T-Mobile?
With a number of industry leading innovations, T-Mobile has not only become the carrier to watch in the U.S., it is actually taking market share away from the other three major stateside operators. According to the average estimate from seven analysts, T-Mobile will report the addition of 444,000 net new subscribers in their next earnings report due to be released November 5th.

Compare T-Mobile's estimated net additions to the 363,000 that AT&T recently reported. And if it weren't for tablets, the carrier would have lost subscribers in the period. Most likely T-Mobile took business away from Verizon and Sprint along with AT&T. T-Mobile has led the way with the elimination of subsidized equipment purchases, allowing earlier phone upgrades for certain customers and the removal of international roaming charges. Last week, the nation's fourth largest carrier announced that it would give away 200MB of data each month free to its customers with tablets that have cellular connectivity. Not only might this have an affect on tablet-heavy AT&T, the free data for tablet owners could also hurt Verizon. About 40% of Verizon's 927,000 net new additions in the third quarter are said to have been tablet users.

In its last quarterly report, T-Mobile reported that its churn figure, which represents the percentage of customers leaving the carrier, was 1.58%. That is down from the 2.1% churn rate reported the previous year. Besides the changes that T-Mobile has made, the operator finally added the Apple iPhone to its lineup earlier this year. Now what T-Mobile needs, according to some analysts, is a way to attract family plan users. Such subscribers are believed to make up 90% of AT&T's customer list.

T-Mobile also has a dynamic CEO in John Legere, who has been compared to a rock star with his casual attire and longish hair. Legere says his mind, going as far as calling AT&T's network "crap" at this year's CES, and is a refreshing change to the usual pinstriped, buttoned down, uptight CEO. He is obviously the right person to lead the carrier as it starts its ascension to a loftier place among the four major U.S. mobile operators. Should the other carriers be concerned about this upstart? Joe Pasqualichio, an analyst at Eaton Vance, says of T-Mobile, "they're clearly having an impact." he said

source: Reuters

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78 Comments

1. ihatesmartphone unregistered

Go T-Mobile. Go T-Mobile. Be the best and beat the rest!

5. icyrock1

Posts: 307; Member since: Mar 25, 2013

This! Though, sadly they don't have good coverage where I live (even though they do have HSPA+ 42, it's spotty at best) so the best I can do I cheer them on from afar. I *really* want them to get there coverage up to par (it's not like we're a small city, either. Were the 90th biggest in the USA)!

25. Razrman

Posts: 100; Member since: Dec 05, 2011

I have the same problem too, it works only in certain areas. If it wasn't for that, I would have changed to them.

27. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

The AT&T in particular should be worried about T-Mo. If T-Mo had a larger network footprint, AT&T would not be adding subscribers.

36. JC557

Posts: 1919; Member since: Dec 07, 2011

Exactly, the moment T-Mobile's network comes close to matching that of the major two networks they should start worrying. Heck, I would go to T-Mo in a heartbeat if their network becomes almost as large as Verizon. Good pricing, lower/ no roaming charges and mostly interchangeable phones (they require an extra band) can't be beat. I remember my first cell phone back when I was in high school: Motorola T720 on T-Mobile. That thing was reliable and so was the network, provided I didn't venture out too far from the main interstates or major cities.

39. squallz506

Posts: 1075; Member since: Oct 19, 2011

T-mobiles network footprint now includes over 100 countries. T-mobile has the largest network by far. At&t charges $120 for 800mb of data if you happen to drive the 5 miles from detroit to windsor. T-mobile charges nothing.

50. Shatter

Posts: 2036; Member since: May 29, 2013

Their network is usually the best in cities, its outside of cities were its bad.

56. squallz506

Posts: 1075; Member since: Oct 19, 2011

Most international businessmen spend most of their time in cities as well. WiN

69. Daftama

Posts: 641; Member since: Nov 03, 2012

People people people your are forgetting... What were AT&T and Cingular plans like when they were one company... What happened when they became one of they Tmobile were to become number 2 or 1 in some weird way what do you think will happen

75. nghtwng68

Posts: 108; Member since: Nov 26, 2009

Left at&t in late May after trumped up charges, dropped calls and bad signal connections and haven't regretted it not one day! Fellow at&t friends I know are still complaining. T-Mobile ROCKS!

78. voyagerair

Posts: 2; Member since: Nov 30, 2013

t-mobile is beating the shiiiit out the others big 3. Nowadays, when ppl pay over $70/month, they need to have unlimitted date on 4G LTE. Simple as that. neither AT&T, Sprint, nor Verizon can offer this plan.

2. softfurryanus

Posts: 232; Member since: Jul 09, 2013

I've heard the coverage is alright, step that up and I would say AT&T and Verizon should be pretty scared, and Sprint probably already is...

35. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

Well, you're ¼ right, Sprint should be scared ch¡tless, especially since their Network is pretty sparse as it is. AT&T does have a larger 4G LTE footprint but, not big enough to be at ease and, therefore, they should have some concerns. Verizon, on the other hand, well, that's like comparing an old broken down passenger bus somewhere in the desert to a Stealth fighter jet, where, of course, Verizon is the Stealth fighter jet and T-Mobile is that old broken down passenger bus still running on synthetic diesel fuel, clankering away with a bad clutch and being driven by a dimented moody blind driver suffering from Parkinson's and Alzheimers and insisting he's Einstein. Verizon has nothing to be scared of; sure, T-Mobile is offering "Free Tethering" but, good luck getting actual service. By the way, I have "Free Tethering" too; it's called PDA.net with FoxFi key. lol .....

40. squallz506

Posts: 1075; Member since: Oct 19, 2011

Verizon charges $250/GB for international roaming data, even more in some countries. T-mobile charges nothing. Verizon should be pissing themselves over all the corporate business they'll lose to t-mobile.

42. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

Pay "nothing", get "nothing"! Ever heard of just getting a local prepaid SIM in your host country; easy to do now with many Verizon 4G LTE smart phones as, most are SIM unlocked.

44. squallz506

Posts: 1075; Member since: Oct 19, 2011

Forget that hassle. Why should I do extra work? My carrier works for me. My carrier is T-mobile. When was the last time that At&t or verizon introduced a feature or plan option that did something other than bloat your phone, end unlimited data, or cost you more money? T-mobile is giving new things to its customers every day. I have not seen one bill increase during this period! John Legere is an amazing CEO. There is a reason why the nexus 5 is not coming to verizon.

47. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

Well, congratu'malations!! I hope you and the big Magenta are happy! Incidentally, I haven't seen a bill increase in 8 years and I have Unlimited Data 4G LTE.

59. squallz506

Posts: 1075; Member since: Oct 19, 2011

I am so happy with my free international data/voice/text roaming, my free 200mb of data on my tablet every month, my 6 month upgrade cycle, my nexus devices, and my free LTE and 42mbps HSPA tethering!!! This is where i would say that I pay $70/mo and verizon would charge $300+ a month, but the truth is that Verizon doesnt even offer these features.

65. johnbftl

Posts: 283; Member since: Jun 09, 2012

The nexus 5 isn't coming to anyone yet officially. What makes you so sure T-Mobile will carry it? What makes you so sure Verizon won't? All T-Mobile has become is a nationwide prepaid company that doesn't offer any subsidies because they can't afford to. They have a joke of an LTE network, no timetable for a rollout of VoLTE, a ridiculous ad campaign making customers think that their rent to own program is better than a subsidy, and a parent company that has so little faith in it, it's been trying to sell it off for almost half a decade. Yeah, T-Mobile works really hard for you.

70. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

lol .... so TRUE! +1,000,000,000,000,000,000,000,000................​.............

71. squallz506

Posts: 1075; Member since: Oct 19, 2011

Did I say nexus 5? Tmo has the nexus 4 and nexus 7 lte. Those were the nexus devices I was referring to. Verizon has neither. I don't have a tmo late device, but that's OK my hspa+ down speed is higher than Verizon and sprints lte in my area. Enjoy your subsidies, contracts, bloatware, delayed upfates and $250/GB international data roaming fees on red. Those are some great 'features'.

76. miles16852

Posts: 241; Member since: Oct 20, 2011

hmm, sounds like your just jealous! LOL !

73. rightcue805

Posts: 55; Member since: Jul 08, 2013

all that means nothing if you dont travel out side of the us.

79. voyagerair

Posts: 2; Member since: Nov 30, 2013

all ppl need is to get a SIM and forward their primary # to the new #.

3. NexusPhan

Posts: 632; Member since: Jul 11, 2013

T-Mobile's family plans are amazing when compared to the share everything plans. 5 lines for $110 on T-Mobile. Verizon and AT&T are well over double that. I think they only thing T-Mobile need to do is advertise those prices everywhere.

4. Derekjeter

Posts: 1515; Member since: Oct 27, 2011

Verizon has nothing to worry about. Have you seen T-Mobile coverage? It's a joke compared to Verizon. I know I'm going to hear about it from T-Mobile fans, but let's be honest, it will take years for them to catch up. I would like to switch for all the perks that T-Mobile offers, but let's face it they are just like Sprint. Both give away so much to compensate for lack of service. You get what you pay for.

7. TheLolGuy

Posts: 483; Member since: Mar 05, 2013

You're right. But for those major metropolitan residents that don't have to travel around too much, t-mobile can be a great choice. At least their speeds have been shown to be very competitive, although building penetration has been reported to be inferior...

13. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Not true. T-Mobile offers faster speeds than AT&T while getting signal inside buildings such as malls or retail stores.

21. threeline

Posts: 316; Member since: Sep 11, 2011

If you live in PHX, T-Mobile is the way to go, the city is huge and they have great 4G coverage all the way through it. 3 lines, 2.5Gb of data, unlimited everything for 110.00 a month. Cost me 180.00 on Sprint with less than half the coverage and zero useful data and not a sniff of 4G. It used to take me 10 minutes to download an app on Sprint, what a joke.

22. Shinydesert

Posts: 62; Member since: Nov 17, 2011

I agree with you, I was happy with T-mobile but the building penetration made switch to AT&T. I work in hospitals and ER's, I used to ask every doctor and nurse about their carrier, and everyone recommended AT&T or Verizon. Surgeons spend a lot of times on ground floors,first floors and sort of isolated OR's. They all use AT&T, Verizon and pagers. So all this told me a lot about the carriers.

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