Feeds

T-Mobile flourishes in the US, wilts in Germany

Numbers up, market share down?

  • alert
  • submit to reddit

Top three mobile application threats

T-Mobile USA has added more than a million net new subscribers in its fourth quarter, the company said today, the vast majority being post-pay subscribers. It reported annual customer base growth of 32 per cent despite a slight increase in churn rates among both post and pre-pay customers.

T-Mobile is investing heavily in the US market, where it is the fourth largest operator. US customers spend around 175 per cent as much as European phone users, and growth in Europe is much slower.

Indeed, back on home soil in Germany, a survey of analysts indicates that the company's popularity has been hit by reduced handset discounts. Bloomberg reports that even with 420,000 new domestic customers, analysts expect the competition will have taken a bite out of T-Mobile's market share.

The discount reductions part of a wider cost cutting campaign. Last week, T-Mobile announced plans to cut 2,200 jobs throughout Europe over the next two years. CEO Rene Oberman aims to reduce costs by €1bn.

The cost-cutting measures have opened the door for rival operators to come after T-Mobile's customer base, the analysts said. Boris Boehm of Nordinvest in Hamburg told Bloomberg: "Deutsche Telekom [T-Mobile's parent company] is suffering these days from very aggressive price models from competitors such as O2. If its market share goes below 35 percent, the red light will go on."

Deutsche Telekom releases detailed results on 3 March. ®

Related stories

Cingular posts Q4 loss
Tapping the telecoms barometer
Stelios to hop into bed with T-Mobile
Virgin Mobile ups customers, drops profits

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.