Monday, January 24, 2011

LTE: T-Mobile USA no LTE for a few years

WorldWideTech & Science. Francisco De Jesús.


T-Mobile USA provided an update on its plans for the coming year, stating that the management team of Philipp Humm, its CEO, “intends to bring about a decisive improvement in the company’s operations and gain market share with its challenger strategy.”


The company says that this year its revenue is expected to grow while its EBITDA margin will remain stable. 


Revenue is to increase by US$3 billion by 2014 under its “Grow” programme, “for example by offering customers the best data plans for the fastest wireless data performance in the top 100 US markets,” while its “Reinvent” scheme is aimed at making additional gross savings of US$1 billion by 2013 – it did not state how this will be achieved.


By 2015, the target EBITDA margin will improve from its current levels of just under 30 percent to the mid-30s percent, while contract churn is to be reduced towards 2 percent in 2011 and below 1.8 percent in 2012.


Humm and Rene Obermann, Deutsche Telekom’s Group CEO, noted that the US unit is “generally strong enough to fund itself and will do this with regard to future investments.” The Wall Street Journal reports that the company may sell-off some non-strategic assets, such as its network towers as part of its refocus.


The company made numerous references to its '4G' strategy, although being T-Mobile USA this refers to its HSPA+ deployments rather than LTE (or an alternative).


 It confirmed its goal of extending its current HSPA+ deployment by doubling the transmission speeds to 42Mb/s, with the intention of “offering an expanding line-up of 4G devices including smartphones and tablets.”


 The company said that it sees itself as being in an “excellent position for the coming years to provide customers with products and services that enable them to get the most out of the mobile internet,” and that “LTE technology is to be introduced once devices are readily available and once device quality is on par with the HSPA+ network, although that will probably not be for a few years.”


It was noted that the operator is “exploring various options to acquire additional spectrum and reduce the gap regarding economies of scale compared with its larger competitiors, including partnering with other companies” – T-Mobile has recently been linked with Clearwire and LightSquared, although no specific references to these companies were made in the update. T-Mobile USA noted that its HSPA launch has “already had a positive impact on churn development.”

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