Back in 2011, AT&T attempted to buy T-Mobile, which was considered an underperforming company at the time. U.S. Antitrust regulators subsequently stepped in and blocked the deal, and T-Mobile’s stock price, revenues, and user base have been on the rise ever since. Industry veterans would note that a $3 Billion breakup fee, plus $1 Billion of spectrum, paid by AT&T certainly gave T-Mobile momentum once the merger was blocked.
T-Mobile’s recent success is largely due to initiatives driven by the carrier’s new CEO, John Legere.Since T-Mobile brought in Legere in 2012, T-Mobile has grown faster than any of its rival carriers, through smart service offerings and savvy marketing campaigns. For example, T-Mobile offers contract-free mobile data plans with no overage charges, and the carrier also recently offered unlimited data for the use of the popular new augmented reality gaming app, PokemonGo.
Legere is particularly proud of T-Mobile’s involvement with Google’s mobile efforts. T-Mobile has been involved with Google every step of the way, from working with them to release the first Android phone, to partnering with the search giant on its low-cost Fi wireless service. As a result, Legere is in a unique position to talk about the possible future intent of major tech companies like Google and Facebook.
According to Legere, the fact that leading internet companies will want to get involved in the mobile industry is “clearly inevitable.” As these tech giants partner with or acquire major carriers, the mobile landscape will dramatically change, and both consumers and businesses will explore a multitude of new options for wireless services.
MVNOs
As we’ve seen with Google’s Project Fi, partnerships between large internet companies and wireless carriers are likely to bring about the formation of new MVNO services. For those of you that do not know, MVNOs (mobile virtual network operators) are mobile service providers that lease mobile bandwidth from major carriers on wholesale, and repackage and resell it to the end consumer.
MVNOs often cater to specific markets. For example, DataXoom is an MVNO that provides mobile data plans developed exclusively for businesses, and TracFone Wireless is a consumer-centric MVNO that provides traditional pre-paid wireless services in the U.S., Puerto Rico and the U.S. Virgin Islands.
WiFi-First Services
Telecommunications and mass media corporation Comcast recently announced that the company is looking to develop and test a “WiFi-first” service that primarily utilizes its own WiFi networks for internet access, only utilizing mobile data to fill in the gaps here and there. Comcast plans on sourcing its mobile data from major carriers like T-Mobile and AT&T.
Many see WiFi-first as a revolutionary idea, especially those that do a lot of content streaming, and those that find themselves running over on their mobile data bills. While the idea of a WiFi-first service has a lot of potential, many critics point out that it will be difficult for devices to constantly switch between “WiFi mode” and “cellular mode,” especially since most WiFi networks are secure, and password protected. Also, devices that consumers and business users currently own will need to support WiFi-first technology for it to be adopted on a large scale, which will be difficult for Comcast to accomplish.
The mobile ecosystem is constantly growing and changing, and it will be interesting to see which large tech company makes a wireless play next. DataXoom is an MVNO that provides mobile data solutions designed exclusively for businesses. DataXoom resells mobile data in packages that are flexible, affordable, and suitable for businesses. Interested in how DataXoom can meet your company’s needs? Send us a note at sales@dataxoom.com.
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