T-MOBILE USA, INC
A BRIEF HISTORY OF DEUTSCHE TELEKOM, AG
Deutsche Telekom AG also known as German Telecom in English is the parent company of T-Mobile US one of the largest telecommunication companies in the world with its head quarters in Bonn, Germany. It was founded in the year 1996 and has offices in about fifty (50) countries including the United States (T-Mobile USA). It has about 200 million customers and a total of 247,000 employees all over the world. As of 2010, Deutsche Telekom AG generated Eur 62.4 billion in revenue and over half of it was from outside Germany; location. Its current CEO is Rene Obermann
History of T-Mobile USA, Inc
T-Mobile USA, Inc is a the United States operating body of T-Mobile International AG, which is the mobile telecommunication subsidiary of Deutsche Telekom. It is one of the largest mobile network operators in the United States market with revenue of $21.35 billion and 33.73 million customers and reaching over 293 prospective subscribers (all figures are as of 2010. See Exhibit 1) and its headquarters in Bellevue, Washington. It provides telecommunication and information technology services like messaging, wireless voice, internet coverage etc. It’s current CEO and President is Philipp Humm.
T-Mobile started operations in 1994 as “VoiceStream Wireless PCS” which was established as a subsidiary of Western Wireless Corporation, and in December 1997 the United States Federal Regulations granted the request of Western Wireless to “exceed foreign ownership cap” and this made it possible for Hutchinson Whampoa, a company based in Hong Kong to buy a 19.9% stake in VoiceStream Wireless.
By 1999, May 3rd to be precise, Western Wireless sold off the shares of VoiceStream to its shareholders thus making VoiceStream independent. This was done to eliminate conglomerate discount and to allow the subsidiary go after its own independent strategies. For VoiceStream, one of it was the acquisition of two regional network operators; Omnipoint Corporation in the northeast and Aerial Communications, Inc situated in the Midwest. Both companies were acquired in February and May 2010 respectively. With the acquisition in place, VoiceStream was able to put in place standard business practices and also launch its marketing strategy of “Get More”. (This was later changed to “Stick Together” in 2007 by T-Mobile USA).
Globalization opened a lot of opportunities for businesses to become multinational. It was during this era that Deutsche Telekom penetrated the telecommunication business in the United States by the acquisition of VoiceStream Wireless, Inc for $35 billion dollars and Powertel Inc, a southern regional network for $24billion which was finalized on June 1, 2001. Before the end of that year, VoiceStream had about 7million subscribers and 19,000 employees serving them. Over a year later; in July 2002 precisely, VoiceStream Wireless became T-Mobile USA, Inc; under T-Mobile International AG a subsidiary of Deutsche Telekom. By 2008 T-mobile USA acquired SunCom Wireless Holding, Inc for $2.4billion and in September of that same year, T-Mobile USA and SunCom were integrated, with this integration came an expansion for T-Mobile USA’s network coverage in areas like Georgia, North Carolina, Tennessee, South Carolina, U.S Virgin Islands and Puerto Rico and of course an additional 1.1 million customers from the acquired SunCom Wireless Holding.
T-Mobile has the licenses to operate Personal Communications Service (PCS), Global Systems for Mobile Communications also known as GSM and the digital cellular network that covers areas like the U.S Virgin Island, Hawaii, Alaska and Puerto Rico. T-mobile also provides coverage through roaming agreement with other network providers in areas where it does not have radio frequency. T-Mobile USA has various types of product and services, some of which are the Even More, Even More Plus, WebConnect Internet, Roaming and Flexpay. Other services include the Pay as you
November 4, 2013 Virgin Mobile USA: Pricing for the Very First Time Case Study Synopsis: The CEO of Virgin Mobile USA, Dan Schulam, is faced with the challenge to successfully enter Virgin Mobile into an already saturated cellular market. Mr. Schulam needs to identify a niche in the cellular marketplace and devise a pricing strategy to attract their target segment, consumers between 14 and 24. Schulam must choose one of three pricing strategies to implement that will best allow Virgin Mobile to differentiate…
When examining this case study on Virgin Mobile USA and evaluating the different pricing options, we believe Virgin Mobile has two options moving forward. The first option is the obvious choice for their target market, and for any new product entering a saturated market; the pricing should be quite low if not the cheapest product out in the market. The second pricing structure that would appeal to Virgin Mobile is pricing their product in the middle or average of the industry standard. Moving forward…
Virgin Mobile USA: Pricing for the very First Time Problem Statement – The main problem Virgin Mobile faces with entering the Cell phone industry in the US is a crowded market with several well established providers who have essentially taught the consumers how to use their systems. In order to have any success in the market, Virgin Mobile’s main objective is to create value and profitability in an already saturated cell phone service industry. In order to achieve this goal, Virgin will strive…
The Virgin Group in 2012 Duarte Lopes Pinto Gonçalo Silva Maria Xavier Miguel Borges Duarte Lopes Pinto Gonçalo Silva Maria Xavier Miguel Borges Contemporary Strategy Analysis- Robert M. Grant Index I. What common resources and capabilities link the separate Virgin companies? II. Which businesses, if any, should Branson consider divesting? III. What criteria should Branson apply in deciding what new diversification to pursue? IV. What changes…
Q1:Virgin Mobile targets the 14 to 24-year-olds market. The case lays out three pricing options. Which option would you choose and why? Answer 1: I choose option 3 “A Whole New Plan”. Because I think it is the most radical. I think the pricing plan should start from scratch and come up with an entirely new pricing structure, which should be significant different from its competitors. According to the characters of the Virgin Mobile targets the 14 to 24-year-olds market. (1) They think actively…
Marketing Communication Paper 1: Industry analysis Free Mobile in the French Market. I’m an exchange student; I already apologize for my English grammar and spelling. In 2012, a big change came into the French market for mobile operators (such as Fido, or Rogers here). Free, which was an internet suppliers, just launched his mobile service: Free mobile. It is a big revolution in the French market that only had 3 big brands since the mobile service exists, for more than 15 years now: SFR, Bouygues…
Buyer Target Daimler Benz Chrysler (USA) (USA) Daimler is the 13th largest car manufacturer in the world and is Germanys largest industrial group. At the time of the merger in 1997, Daimler Benz (as it was known) had just 1% share of the US market, was incredibly labour intensive in its production methods and lacked the economies of scale that leading car manufacturers enjoy. Chrysler was founded in 1925 and has over 50,000 employees throughout the world. Chrysler suffered…
dress up as well. By selecting a WonderFlight, each ticket will be charged $10.00 on top of the fare, while $5.00 will be contributed to Virgin Blueʼs RedJet Foundation for charity purposes. For the polaroid picture service, $8.00 is charged for each picture, and 30% of our takings goes to the World Wildlife Fund for the conservation of the Great Barrier Reef. Virgin Blue is in a great position to invest in this innovative business idea as it now faces stiff competition from other airlines such as JetStar…
Abstract One of the most important objectives of the curse is that as students we should be able to make better financial decisions. Have a better understanding and ability to process and implement strategies and make successful decisions. Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication…