“We’re still a wireless company. We’re just not going to act like one anymore,” wrote Deutsche Telekom’s (DTEGY.PK) T-Mobile in an invitation to a mysterious event scheduled for March 26 in New York.
This is a promise that the company has incorporated into its most recent advertising campaign as well.
The company — whose merger with MetroPCS (NYSE:PCS) was just approved by the Federal Communications Commission — is looking to differentiate itself from the competition, which, in the world of smartphones and their accompanying wireless services, is ever increasing.
Earlier this year, T-Mobile’s Chief Executive Officer John Legere unveiled a new guiding philosophy for the company’s operations; as he noted in an interview with Reuters at the Consumer Electronics Show in January, Legere is now molding the company as the “uncarrier.” AT&T (NYSE:T) and Verizon (NYSE:VZ) dominate the telecommunications sector with their duopoly, and in following what has become the industry standard, they both have organized their fees for calling, texting, and data usage into strict contractual plans. But T-Mobile has decided to change the status quo, as is necessary to successfully advertise, create a perceived difference between itself and other companies in the industry, and attract customers from its larger rivals…
To make good on this promise, T-Mobile has said it will eliminate annual contracts and fees normally associated with mobile carriers. But coupled with this change in pricing, the wireless carrier will also get rid of cellphone subsidies in order to give customers lower service prices, as Reuters reported.
These moves will increase T-Mobile’s market share in the United States by 5 percent or more, according to Legere, with gains coming from the industry’s dominant players who still depend on subsidizing phones in order to give customers the device discount that comes tied to a multi-year contract. “If the old industry structure chooses to ignore what we do,” Legere told the publication, describing his thinking. “That’s a potential.”
Analysts are also expecting another piece of news to be announced at T-Mobile’s event next Tuesday. While Legere has so far declined to give concrete information regarding his plans, in January he said the company would begin selling Apple’s (NASDAQ:AAPL) iPhones — and introduce the pricing change — in approximately three to four months. This timeline has prompted analysts to predict that the upcoming mystery event was scheduled to unveil the wireless carrier’s latest strategy. As 9to5Mac noted, “T-Mobile just sent out invites for an upcoming event slated for March 26 in New York, and judging by the invite itself, it appears the carrier will finally announce some official plans for its new no-contract, one-size-fits-all value plan” and, of course, Apple devices.
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