Research Notes

A “Plan B” for T-Mobile in the USA does exist

the question is whether Deutche Telecom dare implement it?
With the events of the past few days it looks very much like the AT&T / T-Mobile deal is falling apart. When you take a closer look at this deal, you will also see that there are many valid reasons why AT&T should not be allowed to take over T-Mobile USA.

So the big question is what should T-Mobile do if this deal does not go through and whether they have any real chance of creating a healthy business? The short answer is that T-Mobile could choose to sell their American division to a market player that continues running their business, or T-Mobile could launch the Plan B that Strand Consult suggested  months ago. This is a plan that we believe is easy to implement and that will be successful in the USA.

The key issue for T-Mobile to achieve success in the USA is to discontinue the single brand strategy which has been the foundation of their US business since they started. Instead they should use a wide selection of MVNOs to target the many different customer segments on the American market. The USA is a country with 300 million people with many different cultural and financial backgrounds. For many years the American mobile operators believed that they could cater for all Americans using just one brand.

The biggest problem with the American mobile market has always been that the American operators have for some reason continually tried to reinvent the wheel and hardly studied success stories from other mobile operators around the world. In T-Mobile USA’s case, they simply decided to ignore the strategy that had resulted in the success of KPN and E-plus in Germany.

If you would like to read more about the strategy that Strand Consult believes T-Mobile USA should implement to achieve success, please click here:  You are also very welcome to purchase our unique report on how to achieve success on the MVNO market. In our report How to Succeed in the Second-Generation MVNO Market we have described how a number of mobile operators around the world have been very successful using the exact same strategy that T-Mobile USA decided to dump.

On the other hand this is not the first time we have seen T-Mobile put a “we think we know better” attitude above a “shareholders first” attitude
More information: How to Succeed in the Second-Generation MVNO Market

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