Jan 13, 2014 12:43 PM EST
T-Mobile made some waves in the big pond that is the wireless communications industry this week when it held its CES press conference. CEO John Legere was there and in rare form, as usual, Red Bull in hand (oh boy). No one was safe from his scorn as he bashed Sprint, Verizon, and AT&T all in turn. The insults were brutal, but true.
The conference began with a review of the past year. Uncarrier 1.0: No contracts, no limits. Unlimited everything was now only $70 and contracts were over. Devices are still financed, but they are on a separate plan from your phone plan. That way, you can quit whenever you want. T-Mobile also began their massive LTE rollout around this time. Uncarrier 2.0: Jump! (Just Upgrade My Phone) Allows you to upgrade once every 6 months. Now you can upgrade when you want, instead of when you’re told. Phone insurance is included as well with Jump! which is $10 extra every month. Uncarrier 3.0: unlimited data and texting in over 100 countries and calling at 20 cents per minute. This move is what really separated T-mobile from their high-roaming charging competitors, according to their commercials with the fellow trekking across Europe.
After a look into the past, Legere talked about the present. According to Ookla’s Speedtest application, wireless customers that use the application to test their network prove that T-Mobile beats the competition in speed: Tmo has 17.8 Mbps, AT&T has 14.7, Verizon is 14.3, and Sprint is an abysmal 7.9. So now T-Mobile has the fastest network, not AT&T. Turns out AT&T’s tests were done before TMo had its LTE network laid out. Their massive network layout went from 0 to 209 Million people with LTE coverage in just one year, making T-Mobile the fastest-growing network in America, in both coverage and subscribers, with 4.4 million subscribers added this year —the best year since 2005.
Next, Neville Ray, the head of network operations, took the stage to talk about wideband LTE, or LTE-A. Detroit and Dallas are the first of many cities to receive data speeds of up to 147 Mbps. Although the competition’s future LTE-A isn’t necessarily compatible with all of their devices, all LTE T-Mobile phones can use wideband LTE. After talking about the network some more and mocking other wireless providers, Legere announced Uncarrier 4.0: when you switch, T-Mobile will pay your ETF and buy your phone in order to get your business, with up to $350 for your ETF and up to $300 for your phone. Now everyone can have unlimited data without a contract. This fourth phase of Uncarrier will be what it takes to separate T-Mobile from the competition. Either that, or the industry will change. When speaking on the topic, Legere said, "We are either going to take over this whole industry, or these bastards will change and we'll still be wildly successful. I'm going to love watching the peckers scream."
The competition has already started making some changes similar to T-Mobile and hinting at moving more in that direction in the future, which may pass off some better savings to us. According to Mike Sievert, T-Mobile’s CMO, a family of four can save $1,880 over two years. Along with the news, a new humorous marketing campaign has been started to simulate a “breakup” with your former wireless carrier, and will send a letter to your carrier announcing your intentions to “move on” because “I’ve found someone else.”
After this session, there was a Q&A and a bit of a look into the future. Network size was mentioned, and Legere spoke about their plans to grow even more throughout 2014, using the low-bad spectrum bought from Verizon. Unfortunately, no specific goals were mentioned this time, like in 2013. Someone asked about the rumor that Sprint was planning to merge with T-Mobile, and Legere responded, “You know I'm supposed to drool and not say anything, but I have a few things to say about that. Traditionally, companies bought others for the spectrum. They are spectrum with no legs. I can tell you that the T-Mo brand, attitude and identity is here to stay. We can acquire low band spectrum, we've proven that. What we are is the brand, a focus on the consumer, a change agent in the industry.” His response, while intentionally ambiguous has led people to guess that Sprint may buy T-Mobile and keep the name and people, or T-Mobile will buy Sprint. Either way, if this new company is run well, a large provider of unlimited 4G would be much appreciated by consumers everywhere.
As the conference wraps up and we look into the future, what do you think about these latest announcements? Leave a comment below and tell us your opinion!