The iPhone's Role In Crippling T-Mobile
GMGruman writes "The feds may be blocking AT&T's buyout of T-Mobile, but T-Mobile is in poor shape to continue as is. Parent company Deutsche Telekom's decision not to invest in U.S. spectrum a decade ago constrained T-Mobile's ability to grow, especially through 4G networks now finally emerging. But from a customer point of view, it was the iPhone that has threatened the company the most. Or, more precisely, its lack of the iPhone."
Are you kidding? Unless you are paid by Apple or a Zombie, can do you really believe and iPhone is any better and a T-Mobile G2 or any high end Android handset?
Really? Want some Apple flavored Kool Aid?
* Carthago Delenda Est *
The iPhone has 5% of the mobile market. T-Mobile is not failing because they don't have a slice of that 5%. That did not cripple them in any way. Lack of investment in coverage area hurt them, but not having the iPhone is insignificant next to that.
It sucks they're declining, because they were the only company that you could ever pay off a subsidized phone - at the end of your 2 year contract, your rate went down unless you got a new phone. It should be illegal to keep charging you for the phone once it's paid off, but that's what all the other companies do.
Sprint seems to be doing fine. And are we already forgetting that Verizon just recently picked up the iPhone?
As far as I know Verizon was still more popular than AT&T even before they had the iPhone.
That's why Verizon was such a niche cell provider prior to them getting the iPhone.
I don't see any data presented in the article. The claim is made that smartphone users are leaving in droves. So, where is the chart of smartphone market share per carrier?
I switched TO T-mobile to use a smartphone, since neither Verizon nor ATT had decent options (2.5 years ago). If you want an iPhone then you're going to ditch T-Mobile, but the last time I checked most smartphone users don't use iPhones.
And the last time I checked I had 4G service just about everywhere I actually go with T-Mobile, which includes a moderate amount of travel. If you like to go fishing in the mountains then you'll do better with a different carrier, but if you actually spend your time where the population density is greater than 3/km^2 you'll almost certainly have 2G with T-Mobile, and most likely you'll have 4G as well.
Either AT&T buys them, or they go under. Apparently Sprint realized they do better if T-Mobile goes under, as they can pick off some of the customers that way. Sprint had no interest in converting T-Mobile's terrible network to their own terrible cellular standard. T-Mobile was a sinking ship by their own incompetence and horrible network prior to now, and prior to the iPhone.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
Blocking an American company from buying out American assets back from a German company. Blocking merger, that would produce economies of scale. Actually a pro-liberal administration going against unions (as AT&T has a union and T-mobile does not, so union would automatically get more members). If the deal falls through AT&T will be on a hook for about 7 Billion USD in penalties. Great idea for American government to do that to American investors (how many mutual funds own the AT&T stocks?)
Government likes to pretend it is there to break up monopolies, but in reality it creates monopolies every time it spends any money.
Solyndra LLC of Fremont California, a manufacturer of solar panel has filed for bankruptcy protection and has laid off its remaining 1,100 workers. Obama provided them with loan packages of 535 Million dollars, Obama personally visited that company over a year ago, promoting that worthless business that cannot generate profits even with government support. How many businesses could have used that money if dollars could be allocated privately where market needs them? Instead a monopoly was being created, but it failed even with government support. Figures.
You can't handle the truth.
From the article, "People are fleeing to AT&T"? Really? Don't know what TMobile are doing wrong (decent range of phones, cheaper plans), but I'd be curious on the fleeing to AT&T part.
Time for my weekly rant;
Just open up the airwaves and share bandwidth whilst keeping separate customers. Phones ID' themselves when they connect so you could work out who should be paying who for the use of the towers, there'd be reason to install multiple towers to improve speed/reception, and far out in the wilds customers wouldn't need a tower for each network, just one if it wasn't profitable for everyone to chuck one up.
Then the customer could choose which phone they wanted, on which plan, on which network, and still everyone wins, especially the customer.
Waiting for an amusing sig.
Carriers leasing phones, but only a specific subset of what's on the market. Best idea since sliced bread. It'd be totally awesome if I'd also be able to lease my shower from the water utility and then be stuck with them and my water-utility-branded shower until the lease expires:P Lol.
0x or or snor perron?!
I was a loyal and happy T-mobile customer since the Voicestream days, just before they became T-mobile. I waited as long as I could for them to get the iPhone, I considered the G2 and myTouch phones, but ultimately my job (iPhone app development) required that I own an iPhone, so I could wait no longer. So yeah, I'm one of those who left T-mobile to get an iPhone.
Apparently, Apple went to all the carriers, and only AT&T was willing to give them the concessions they asked. If T-Mobile had stepped up, maybe even worked to become the exclusive carrier, I'm sure they'd be better off today.
I left T-Mobile because their network didn't cover all the areas I needed cell reception in. That's it. T-Mobile's network in the Pacific Northwest is better than Sprint's, but when you get away from the interstates (especially east of the Cascades) there are huge gaps.
Now, when I originally left Verizon and switched to T-Mobile... that was because Verizon was evil. Verizon had coverage everywhere, but their fundamental evil-tude overrode that.
#DeleteChrome
Even the most arch-capitalist of pre-welfare-state Western thinkers a century ago would have laughed at the idea that you could sell radio frequencies to private groups. "I get exclusive right to send waves of THIS length."
They'd also laugh at the idea of intellectual property as opposed to temporary copy right.
What exactly is our current regime, anyway?
The iPhone has PLENTY of stern competition from Android phones. T-Mobile crippled itself in 4 simple ways:
Not competing on price with the big 3, and following Boost's lead.
Not competing on contract length, or better yet ditching contracts altogether.
Not updating existing Android phones to newer builds in a timely fashion.
Entering into talks with AT&T in the first place.
I was a happy T-Mo user for many years. But the second my current contract is up (which is way too high, and I'm still on a Froyo device that came out > 2 years ago!!!), I'm gone. Those four reasons are really it, but truthfully, having had AT&T in the past, I will NEVER use their service or a company who partners with them ever again. There is tons of room in the cellular market to make money and compete. Offer better service at lower rates, and offer the latest software which is BASICALLY FREE from Google anyway.
T-Mo has a good network. I get signal almost everywhere. They have good high speed data connections. But they don't have a reasonably priced contract and new cheap device to take advantage of it. And their in talks with AT&T. I don't know a single person who's sticking with them. I'm moving to Boost myself in the next couple of months.
I hold very few opinions. I hold information based on observation and fact. If you wish to disagree, please use facts.
Fanboi rant
Are you kidding? Unless you are paid by Apple or a Zombie, can do you really believe and iPhone is any better and a T-Mobile G2 or any high end Android handset?
Although I dislike using the term "fanboi" in any context, I cannot help but note how ironic it is that you disparage iPhone users by using that term, when you yourself seem to be blindly pushing Android even to people who would be better served by using an iPhone. There is a real difference in security and ease of use.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
"Why is it that Apple fans have to make everything about the iPhone?"
It really is sad. Apple fans were never like this years ago. I know I certainly wasn't. Yes there was fanboyism. But somehow Apple's move into the cellphone market turned Apple fans into foaming at the mouth batshit insane cultists.
One just has to see what has become of major Apple sites like AppleInsider:
* Apple invented EVERYTHING
* Anything not made by Apple SUCKS
* Anything not made by Apple would be AMAZING if Apple did it
* 'Teh OMG!!! iPhone' caused or is responsible for X. Where X is basically EVERYTHING. Wars, famines, stock market swings, celebrity breakups, medical breakthroughs.
How many Apple shill accounts do you have?
SuperKendall
Bonch
How many more?
paid by Apple or a Zombie--whatever that means.
I think the other phones are fine, to each their own and all that, but I prefer an iPhone because of the quality of the hardware and software, elegant integration across laptop, tablet, phone, aTV. I can understand others not being into it.
I don't know if the lack of iPhone hurt T-mobile substantially; at best I would guess that's a second order effect given the size of the high-end smartphone market relative to the overall market.
It wasn't the iPhone, it was MetroPCS, Cricket, Straight Talk, Boost Mobile and Virgin Mobile. The fact is, you don't need to sign a 2 year contract for an "unlimited everything" plan on a budget these days. T-Mobile's prices aren't good enough to compete with the real budget carriers, and their network and device selection isn't good enough to compete with AT&T and Verizon, so they're kinda stuck in the middle. Sprint is feeling the same pain (although, their Boost Mobile and Virgin Mobile prepaid divisions are gaining customers). Apparently, there's not much market for people who are just a _little_ cheap.
---
DRM is like antifreeze, to the MPAA/RIAA it's sweet, to the consumers it's poison.
Head for your local Starbucks and mod down the unbelievers! Let's those mod points fly Apple Warriors!
T-Mobile is still a buyout target, and at this point I think Google or Microsoft could pick them up for less than AT&T offered. Since T-Mobile is more Android friendly than WP7 I think Google would be a more likely suitor.
Didn't hurt Verizon any.
In GSM-only markets, like Australia and parts of Europe, where all carriers had the iPhone at the same time, Android Phone market share is only marginally better than Android Tablet market share.
Speaking from a GSM-only market (Finland), I don't see this at all, and your rant looks like fiction. Android phones greatly outnumber Apple's iPhones in public places such as shopping malls and airports, and in corporate environments. Hint: most corporations here don't provide iPhone or Android phones, people must buy their own and stick the company SIM card in it unless they're happy with the corporate-issue Nokia crap; they seem to be choosing Android by a substantial margin.
The increases in Android sales coincided with supply issues of iPhones. People would only buy Android phones when they couldn't get and iPhone and *needed* a phone now.
Do you have any data to back up this fascinating conjecture, which looks like baseless wild speculation from here. I don't know anyone who has an iPhone. I know many people who have Android phones.
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
I use a T-Mobile MyTough 4g which I purchased outright from T-Mobile & then flashed with Cyanogenmod. I pay $60/month for unlimited talk, text & data with a 2gb soft cap. If I go over 2gb I'm shifted to edge speed for the rest of the billing cycle. I'm not shut off or charged extra.
The T-mobile network lets me do everything I want my phone to do everywhere I go. I've never had a complaint about coverage, data speeds, or anything else.
When ATT, Sprint, or any other carrier can match that deal, I'll consider switching.
You are a fanboy.
Can we just drop the Hate Labels and talk reasonably here? You did a good job of that otherwise.
He wasn't pushing anything: he was making a valid point that the market today is not like it was when the iPhone was first introduced
Yes he was. By saying there was "no difference" between the Android and iPhone today, he is saying that ANYONE could use either with no consequence.
But that simply is not true for everyone. That is sort of true for technical users, although even there I would say there is a clear difference as some people obviously prefer the greater customizability of Android out of the box.
But for non-technical users, you do people who would not even know what a "task manager" was a disservice by steering them to a device that really requires more technical understanding to get the most of or use without issues.
claims that one is intrinsically superior to the other are fundamentally ridiculous.
Note carefully that I have NEVER claimed overall superiority of the iPhone. What I claim is that for SOME users it is the better choice. As is Android for others. Is that really wrong, to note that in fact some users are better served by one device or software over another? Are we as a people so lost in the deep realms of PC bullshit that we cannot even say one device is better at a specific task than another?
Generally speaking, when the founder of a successful organization dies or retires, his creation loses focus.
Lucky for Apple then Jobs has done neither.
Jobs' vision drove Apple to where it is and it remains to be seen if the company can flourish without it.
Something to look at carefully in about five years, but Apple has a long pipeline, and a lot of people in place hand-picked and trained by Jobs to think like him, along with a whole company of engineers who agree with his thought process pretty strongly at this point. I am pretty sure he has come as close as is possible to creating a self-correcting organization at this point that cannot get too far off the line he would have taken...
Not to mention Ive still works there, and he's really the one that is responsible for most modern Apple devices' immediate visceral appeal on holding it.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
your claim about security don't hold very well, now if you want to talk about the perceived security, the iPhone wins....
Is it only perception that Android has had many more viruses and trojans than has the iPhone? Nope.
If it's possible for non-technical users to be Phished to a web site where they can download "free angry birds" then your platform is less secure, period.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
I've always been myself, I only have time for one of me. If there were more it would be nice though.
I'm not sure if I've even ever read Bonch. Certainly he is not myself if his posts are not memorable nor insightful enough for me to remember.
Now Booch, that is a guy worth reading.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
What do they want to do with the money they are trying to raise by selling T-Mobile? Do they have debts that they need to pay down? Do they have other projects in the works that need more capital? It seems pretty obvious that DT does not want T-Mobile anymore and does not have any interest in investing money infrastructure upgrades to continue competing in the market. So what do they want?
The iPhone carries with it a premium data plan
On AT&T, I'm stuck with the same data plan choices as anyone else. Initially that was true as Apple worked out a special deal, but I don't think any carrier has a data plan for the iPhone these days that differs too much from any other smartphone.
There are plenty of people that use lower tier data plans (200MB/month) on AT&T to conserve money. While not cheap ($15/month) it's certainly not something I would label "premium" (it would have to cost more than a movie with drinks for me to hit that term).
I think it might be more accurate to say "the iPhone is tied with a data plan" which is not exactly premium, just an extra service that makes more sense on a smartphone.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Well, okay. You have a G2 with the stock firmware, probably using the stock Android launcher. Yeah, it works, but it's not the best, I agree. However, unlike the vaunted iPhone, you'll find (with a little research) that you can completely change your experience.
Just like a more technical user unsatisfied with the limitations of iOS as-is, can completely change the experience by jailbreaking.
The difference is that for most users they don't have to do that as shipped on an iPhone to get an experience they enjoy. That is what he is saying.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Actually, T-mobile will be in pretty decent shape if the merger with AT&T doesn't go through - they get $3 billion in such a circumstance. As for the iPhone, that's also wrong - until the Verizon iPhone came out, the carrier with the second largest number of iPhones was T-mobile (hacked and 3G less, but still paying T-mobile).
So, umm, yeah. Your two main premises are either completely wrong or seriously flawed.
"... those minutes in a year they roll to the next year if you buy another $100."
In the past, and maybe now, the minutes roll over if you buy another $10 or more.
After 3 months on the prepaid plan, T-Mobile would unlock you phone.
I'm on T-Mobile at the moment (with an aging Android Dev Phone*), but my contract expired a while ago so I'm free to leave if I please. I definitely want to stick with the Android platform. For a while I was drooling over Sprint's EVO 3D, but I heard its battery life sucks when you use the 3D features a lot. I live in Seattle, BTW.
Who would you recommend?
Being from Germany originally, I have liked always liked TMo in the US - friendly customer service, GSM technology (important if you travel overseas a lot), very good coverage (only in Puerto Rico I drew a blank so far) and the fact that they allow you to unlock the phone after a very short time (basically after you paid 3 bills or so). I have always been able to plug in my German pre-paid card and avoid overseas roaming charges. In addition, TMo is one of the few carriers to still offer an unlimited data plan, which came in really handy when Hurricane Irene took out my regular network for days.
But the selection of phones they offered in the past (before the iPhone - I don't really care about that) were clearly putting many folks off. They got the Razr at a time when people already dumped them on EBay, and only recently they got themselves a real winner with the Galaxy S/Vibrant. I always had a hard time defending our family plan with my kids with the "totally uncool" phones, and ended up buying unlocked phones on the free market a few times. I once found myself next to a T-Mo corporate woman on a flight and told her that. She was really surprised and recited the list of phones she thought were really great - almost the same selection that I knew to be the list of Phones Never To Be Caught With. It continued with the Android 1.5 phones that were offered forever, the Blackberries, and others which appeared to be selected for their total absence of any kind of must-have appeal.
The reason is that ATT will be forced to build out a network. By buying them out, it really does not help the industry or consumers. OTH, T-Mobile has built out all over the world. And iphone is simply not needed. Android is bigger and will continue to grow.At some point, iphone will choose to sell to t-mobile. Otherwise, it will encourage android to eat into their space.
I prefer the "u" in honour as it seems to be missing these days.
Well, IMO Tmo is the only of the large carriers I don't consider to be part of the "Evil Empire". Yes, I know, they are a corp. like all the rest, but they just honestly don't seem to be screwing me every time they can and openly misleading me and committing fraud. Verizon .. well really enough said, but.. Well, Verizon actually had my bill screwed up and they tried to tell me it was for my benefit I was paying more than I signed up for that month. They said that if I continued the same activity for a year, I'd come out ahead so I should not worry about the 35.00 US overcharge for the 2 weeks I was on vacation and they convienently changed my plan. iPhone? lol who cares? I certainly don't. I have had Android since the first G1 on its release date. I'm no Fanboi spouting the holiness of the platform but I can say I run a Nexus S now a days and couldn't be happier with my T-Mo account and the Rooted Tethering that Tmo doesn't really complain one way or the other about. Verizon wants to charge you mega bucks extra for the tethering. Did you know that on your iphone if you tether you are using different bits ? they are "premium" bits. Well, thats the way Verizon sees it. ATT ? well cut Verizon above and insert ATT. Whats different? Gawd I am so Fkn sick of the way the world is changing to this Fanboi kind of attitude where the truth or any objective reasoning doesn't count anymore.
"Computers are a lot like Air Conditioners" "They both work great until you start opening Windows"
i used an iphone w/t-mbl.no 3g but other than that works good...no contracts-the only way to go.
I see iPhones everywhere myself. Of course this kind of anecdotal evidence is nearly worthless because of Selective Perception and Confirmation Bias.
If all else fails, immortality can always be assured by spectacular error.
I think what hurt them was their overfeminist advertising. I certainly never saw them as a serious contender until I went into their store, and checked out their phones, and rates for myself. I always saw them as the brand for teenage girls.
An unlimited plan with a 5 gig a month cap (which gets throttled once you go over, you don't get overcharged) for 80 bucks a month with no contract. Is a very good plan. In NE Ohio, their coverage is better than Sprint's, and their network drops less.
Oh, and they do have an 'iphone' it's called the G2X, and it is a gem, built in graphics card, dual core chip, and stupid good battery life.
Deutsche Telekom has an opportunity here and they'll clearly miss it as they have every other one that's come along.
The cell phone market in the US is bullshit. We have little choice and being locked into a contract sucks. My rate plan on my phone is now nearly $100 a month, which, if it wasn't a company phone, there's no way I'd pay that. Most of the "features" I have are things I need for business. My wife was forced to get a "data" package on her phone even though it really doesn't even have a web browser. At most she sends a half dozen txts a month.
T-mobile could probably get a huge chunk of the market if they ran their business the way their European counterparts do:
1. No contracts.
2. GSM so you can move from phone to phone with your SIM card easily.
3. Undercut everyone's prices. Like SERIOUSLY undercut everyone's prices - offer basic rate plans for $15 a month. Make a basic data package for under $30 with a super basic Android phone.
4. Don't build a "4G" network right now - use the existing 3G network to deliver basic services. Buy AT&T's leftover equipment they'll soon be ripping out en masse to expand the 3G.
5. Don't be a douchebag like Verizon and AT&T.
6. Send me a chocolate frosted cupcake on my birthday.
They'd actually get a decent business marketshare with that. Think about it - no business cares if their employees can browse the web. They just want them to have email and calendaring.
F*ck the iPhone.
I just went with T-Mobile because they were the only ones that could give me a phone with data for and text for $69 a month. I am now contracted to T-Mobile for 2 years. T-Mobile seems to be cheaper and pretty much just as good for me and there is still potential for them to rise up and continue to succeed. Jared http://www.rhyous.com/
The iJunk proves an important point. Just as with the election of Hussein Obama, the iPhone proves a fool & his money are soon parted. All you have to do is watch this silly video, http://www.youtube.com/watch?v=FL7yD-0pqZg and you'll know the average intelligence of an iJunk user.
Plenty of Wireless companies thrived without the iPhone ..... Like Verizon...I remember hearing that even though the iPhone finally came to Big Red it had little impact on New subscribers.....yet T-Mobile is a failure because it lacks the iPhone...Wtf is the matter with your Editors. The FlameBait spewing from Slashdot is at an all time high! I remeber when this site actually was a go-to destination for reliable non-bias stories...Those times are long gone. FlameBait rukes the.desk of your Editors..Pathetic!
Many people don't appreciate it. Many people don't realize they could have been born with a crippling birth defect that impaired their ability to function.
You should treat it as the blessing it truly is, and appreciate it.
They sell Android phones, usually a few each from a couple different Android manufacturers. And it is all of those manufacturers, with phones from free to top-end, that have the highest mobile handset marketshare.
But if a mobile provider wants ONE phone they know will sell like hotcakes, it's the iPhone. If Samsung, HTC, Motorola, Sony and LG each sell one smart phone, Apple sells two iPhones.
Not only a terrible summary but a completely ridiculous premise, a 5% market share phone is responsible for bringing down anything? A complete fanboi with a self importance level reached only by other Apple fanbois.