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Case Study: T-Mobile USA

1271 Words6 Pages

T-Mobile USA is a national provider of wireless voice, messaging, and data services capable of reaching over 293 million Americans where they live, work and play (About T-Mobile, n.d). The company was formed in 1994 as a subsidiary of Western Wireless Corporation and was called VoiceStream Wireless PCS. In 1999, VoiceStream was spun off from Western Wireless, in 2001 it was acquired by Deutsche Telekom AG and was renamed T-Mobile USA, Inc. in 2002. Thereafter in 2003, business combination of T-Mobile USA and MetroPCS led to formation of T-Mobile US, Inc. BUSINESS STRATEGY ________________________________________ The channels of distributions are retail stores (company owned and franchised), third party distributors, and company websites (www.T-Mobile.com and www.MetroPCS.com). Based on customer growth of 2014, T-Mobile is the fastest growing wireless company in the U.S. Main elements of the business strategy are:  Un-carrier proposition T-Mobile has adopted an approach, called Un-carrier through which the company tries to reach to customers, i.e. what are their concerns, and address the same through innovation, thus improving the wireless experience for all. T-Mobile …show more content…

Telecom is highly capital intensive industry and since market forces cannot maintain competition in such cases, it is a highly regulated industry. It is regulated by the Federal Communications Commission through policies, subsidies for rural areas, pricing, spectrum allocation, licensing, etc. Telecom is an industry with network effects which means that utility of service to customers increases as more customers start using it (Sheffer, 2015). As the network size of telecom increases customers would prefer to move to larger network. It can lead to domination by single company in the

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