Leaked Internal memo from T-Mobile COO Freier reveals official date when T-Mobile goes 100% digital
T-Mobile's transition to a digital Mobile Network Operator will officially begin this summer.
T-Mobile internal email containing important news leaks | Image by PhoneArena
The other day we told you that according to social media posts written by T-Mobile reps, the carrier was starting its life as a 100% digital carrier on August 1. According to The Mobile Report, this chatter has become more "official" as an internal memo from the carrier's Chief Operating Officer Jon Freier, sent to all T-Mobile employees, has leaked.
T-Mobile COO Jon Freier sends an email to T-Mobile employees about the carrier's transition
In this memo, Freier said, "Every upgrade and add-a-line transaction whether done in a store, over the phone, from the couch, wherever, will be done exclusively in T-Life as of August 1."
The transition to digital should lead to more layoffs of Mobile Experts, and we could see the closing of additional stores. T-Mobile already has been reducing its headcount and shuttering locations.
What will be the outcome of this transition?
Why would a super successful carrier like T-Mobile do this? The wireless firm was dead last among the Big 4 in the U.S. until 2012 when John Legere was hired as CEO and president. Under Legere's leadership, T-Mobile became the Un-carrier giving customers perks like Netflix on us, and starting the rewards program that still leads the industry: T-Mobile Tuesdays.
It almost felt that every quarter saw T-Mobile blow away the rest of the industry in net new postpaid phone adds. The decision to build out its 5G network using the Goldilocks 2.5GHz mid-band spectrum acquired in the Sprint acquisition helped T-Mobile become the 5G King in the U.S.
In July, we are planning to have 100% of consumer upgrade and 100% of consumer add-a-line transactions now eligible in T-Life. […] As a result of that milestone, I’m pleased to tell you that, on August 1, we are planning to remove systems access to legacy systems for these transactions which will default move us to moving 100% to T-Life and achieving 100% in our T-Life success metric. Every upgrade and add-a-line transaction whether done in a store, over the phone, from the couch, wherever, will be done exclusively in T-Life as of August 1.
Jon Freier, COO, T-Mobile
This is how I would exploit this transition if I were running AT&T or Verizon
T-Mobile has basically dominated the industry in the U.S. and instead of sitting back on its laurels, it is taking a huge risk. Not every T-Mobile subscriber likes to use the T-Life app and making this move risks alienating them to the point where they might be more comfortable switching to a new wireless provider.
T-Mobile COO Jon Freier says the carrier's 100% transition starts August 1. | Image by T-Mobile
If I were AT&T and Verizon right now, I'd be licking my lips getting ready to pound the airwaves with commercials. These ads would show T-Mobile subscribers unable to upgrade to a new phone that they want because of an issue with T-Life. Then it would cut to a Verizon or AT&T customer ordering the new iPhone from a rep, quickly and easily.
T-Mobile says that phone upgrades will be 25% faster to complete using the T-Life app
The Mobile Report also said that it has learned that the T-Life app will soon support "Store-in-Store" locations. These are T-Mobile locations inside other stores such as Costco and Sam's Club. The designation also refers to other stores that have a T-Mobile kiosk inside.
Freier's email includes some interesting statistics. When a new customer joins T-Mobile using T-Life, there are 30% fewer calls to customer care, saving T-Mobile some money. The T-Mobile executive said that upgrades were 25% faster when done over T-Life, and they were completed using 50% fewer clicks.
Why this is a risky move by T-Mobile
Freier is using this data as proof that the transition will be good for T-Mobile subscribers. But I am not totally convinced that this is the best move for T-Mobile and the company's customers. Keep checking those prepaid phone churn numbers each quarter starting with the third quarter earnings report.
If the postpaid phone churn numbers rise, that means the transition is not off to a good start. If it continues to rise, T-Mobile could face a serious problem. It has obviously invested a lot of time and money into this transition and there really isn't any way that the carrier can reverse this so fast even if it wants to.
It is a risky proposition, and one that could put an end to those rumored discussions between T-Mobile and its largest stockholder Deutsche Telekom about combining in the largest M&A deal the world has ever seen. The combination would create the highest valued publicly traded telecom company in history.
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