Deutsche Telekom CFO on T-Mobile USA: 'we lost customers because many... couldn't get 3G'

Sometimes, properly taking your lumps is the best way to learn a lesson and move forward, and Deutsche Telekom -- T-Mobile USA's corporate parent -- isn't pulling any punches about the mess it's gotten itself into in recent years. CFO Timotheus Hoettges has gone on the record in Germany this week saying that there's "no question that [they] lost customers because many of [their] customers couldn't get 3G," a painful acknowledgment that T-Mobile's old attitude toward high-speed data -- rely on EDGE supplemented by an extensive WiFi hotspot network -- as its larger competitors built out large swaths of genuine 3G coverage has ultimately hit the company in the pocketbook. For what it's worth, they seem to be making up for lost ground with a mega-rapid HSPA+ rollout (which Hoettges says will command some €3.5 billion -- about $5.2 billion -- of DT's investment cash this year), and there's still this whole Project Dark mystery to occupy our collective imagination, so the depth of the company's commitment to its American subsidiary seems genuine. Interestingly, Hoettges went on to say that they still haven't decided on a 4G strategy with "all options" still on the table. Ultimately, "all options" is going to mean either WiMAX, LTE, or capitulation, so we'll just have to sit back and wait to see how this develops.

[Via mocoNews]

[A Man Posted Oct 13th 2009 12:26AM]

We no longer care about the many failures of T-mobile. If they improve, cool, if not it's not a big deal.

[(Unverified) Posted Oct 13th 2009 1:03AM]

I'm glad T-Mobile is making a turnaround for the better. I know ATT employees like to bash them but in reality we should embrace competition not stifal it.

DT is really making it apparent they are going to be investing heavily in its US subsidiary.

I always found the company easy to deal with and a pleasure to do business with. I just opened a small business with 40 lines and ported them over to them from Verizon Wireless.
I'm very happy with their local coverage and call quality.

I hope they are serious about a super fast acceleration of their HSPA + 21 Mbps data network. If they can pull this off fast and provide enough backhaul, it will be very competitive with current 4G networks..... maybe even better from what I hear about Clear.

[(Unverified) Posted Oct 13th 2009 2:11AM]

Project Black's full name is Project Blackout -- T-Mobile is going to delete all their subscriber's data on a random basis. "Suffering from information overload? Come to T-Mobile. Our Project Black will solve all your worries." :)

[(Unverified) Posted Oct 13th 2009 12:25PM]

that would be Microsoft...

[(Unverified) Posted Oct 13th 2009 2:30AM]

I read this earlier...wanted to grab that. I also read another article also pointed out that there were enough companies, etc, etc.

The dude from DT says:
'There is no need for further US consolidation....'
He also said
“There are four national players in the U.S. market for 300 million households, while in Europe, where we have 350 million households, there are 50-70 operators..."

Interesting point there, really interesting point. But the only way for Companies to grow in America is through acquisition. Sprint can technically be sold twice ( maybe 3 times )...Sprint Wireless, wireline, nextel....If I had 100 billion, I'm buying Sprint Wireless...looking at strictly stock...3.57 is the outlook with a market cap of 10 billion....15 billion would be a good offer or offer up repurchasing the companies debt...

[(Unverified) Posted Oct 13th 2009 2:13PM]

This is NOT where they need to be going... Admittedly LTE isn't quite ready, but 3G is too old and quite frankly not good enough. It would have been smarter to build out a WiMAX network (or a more expensive LTE network) and just kill 3G now.

[(Unverified) Posted Oct 13th 2009 3:10PM]

21Mbps is not good enough??

[(Unverified) Posted Oct 13th 2009 9:17PM]

I must say this is one of the things that was most dissappointing about TMO. They have always had the best prices, but I nearly switched to one of the other top 3, because all 3 of them had 3g in my area when Tmobile did not.

It ends up that they switched it on yesterday (only about a month after I got my TP2) so I'm not a dissatisfied customer any longer.

But I really can't wait for that HSPA+ to roll out! 21Mbps is def enough (you know, for now)