VMS3.info FEATURE ARTICLE

Subject: April 2003 VMS3.info: T-Mobile Analyzed via the Value Framework™
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Summary - T-Mobile "GET MORE FROM LIFE"

T-Mobile's philosophy: "To provide customers with the best overall value in their wireless service. Through T-Mobile's GET MOREsm service offerings, customers get more minutes, more features, and more service, enabling them to enjoy the benefits of mobile communications to Get More From Lifesm ."

As one of the newest telecommunications companies on the market, T-Mobile already has a positive competitive global position being recognized as a global brand name in more than 90 countries worldwide. To expand its market share in the United States, it has launched a global campaign with Catherine Zeta-Jones as its global spokeswoman.

T-Mobile uses new, state-of-the art technology to support its wide range of products and services. The use of GSM, WiFi, and GPRS technology supports its high speed, wireless, voice, data, and messaging services. Partnerships with T-Mobile include: America Online, Starbucks, Motorola, and Nokia to name a few. T-Mobile is the first International company to offer service on both sides of the Atlantic with a single global brand name and a single digital technology standard, offering customers the advantage of using its wireless services for worldwide travel.

To evolve from a new company to a positively recognized global brand, T-Mobile needs to establish a niche strategy that revolves around spectacular customer service. It needs to offer products and services that are different from any of the other wireless service providers.

Strategy Deployed
Although T-Mobile is a relatively new company in the United States, it has already built a global presence. T-Mobile's original deployment of wireless telecommunication services in the United States debuted in July 2002. It is based in Bellevue, Washington and is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG. According to its website, "T-Mobile is a global brand name. It is the first mobile communications company to offer services on both sides of the Atlantic with a single global brand name and a single digital technology standard, GSM (Global System for Mobile Communications), offering customers the advantage of using its wireless services when traveling worldwide." (www.t-mobile.com/company/about/)

When it decided to make its debut in the United States, the company chose California and Nevada as the first markets to launch its wireless voice and data services under the global brand name T-Mobile. "It successfully transitioned its VoiceStream Wireless brand in its remaining markets in September 2002 and now operates exclusively under the T-Mobile brand name in 45 of the top 50 U.S. markets, covering more than 207 million people." (www.t-mobile.com/company/about/)

T-Mobile's original business models include both B2C and B2B, providing customers with its wireless voice, data, and messaging services. T-Mobile's initial transaction is a spot purchases, however, the primary revenue source is the recurring purchase that occurs from the monthly services provided.

For its recognition, T-Mobile launched a worldwide ad campaign featuring Catherine Zeta-Jones as its global spokeswoman. She appears in television, radio, and print advertisements showing how the consumer can "Get More From Lifesm" by using T-Mobile services.

John Stanton is the Chairman of T-Mobile. T-Mobile has over 18,000 employees nationwide with 8 million customers based on second quarter 2002 reporting. Its coverage allows it to own licenses for providing service to over 95 percent of the U.S. population. The website is www.T-Mobile.com.

Strategy Managed
T-Mobile needs to manage itself on the number of customers, percentage of market, total recurring revenue stream, and customer services.

The company offers a wide variety of products and services supported by its state-of-the-art technology. Its product list includes cellular telephones from Nokia, Motorola, Samsung, Sony Ericsson, and Siemens, along with handhelds and PDAs. It also offers network cards that can get immediate access on-the-go with connectivity to the Internet, business and personal e-mail accounts, corporate networks, and more. It also has a wide range of accessories to complement certain products. Its services vary according to its different types of wireless products. For the cellular telephones, it has accounts covering individuals, family rate plans, and corporate rate plans.

T-Mobile operates the largest all digital, nationwide wireless network based on the globally dominant GSM technology. GSM is the most widely used digital wireless standard in the world with about 700 million subscribers-more than 70 percent of total digital wireless market. Only T-Mobile customers benefit from the company's application of this technology becauseit is the only wireless communication service that allows customers to use the same phone and the same phone number too when traveling internationally.

Some of T-Mobile's location partners include: Starbucks Coffee and Admirals Club. These select locations provide a service that T-Mobile offers called a T-Mobile HotSpot. Customers can get broadband wireless Internet access for their PDA or laptop at the speed of a T1 connection.

A SIM card or a T-Mobile Smart Card comes with every T-Mobile personal communication services (PCS) phone. It is a tiny plastic card that has a microchip and is easily inserted or transferred from one T-Mobile phone to another. It acts as the "brain" of any phone because it retains all the saved information from one phone to the next. The T-Mobile Smart Card also provides some security. Phones cannot be operated without this programmable microchip. The use of a phone requires a personal identification number (PIN) for the microchip. "Every T-Mobile customer, regardless of their wireless device or rate plan, can send text messages via their handset to friends and family, no matter which wireless service provider they use. Also, every T-Mobile phone number automatically has a corresponding e-mail address (phonenumber@tmomail.net) allowing customers and their colleagues to use the Internet to send and receive text messages between wireless phones, devices and personal computers (www.T-Mobile.com)."

The T-Mobile website accessed within the United States brings up the T-Mobile U.S.A. home website. Through it, other T-Mobile international websites can be linked. This application makes T-Mobile's business model include C2A2B and B2A2B where customers are able to purchase items on-line. Its website, accessed through a username and password, allows customers to customize their own homepage. Once established, customers can view their statements and other products or specials. T-Mobile has created a recurring transaction where customers can access their monthly statement and pay on-line as long as they submit their credit card number.

Strategy Evolved
The challenge T-Mobile faces is grabbing enough market-share to compete with the top two wireless communications competitors. Already having launched a global marketing campaign, it plans to expand the service to more than 2,000 T-Mobile HotSpotsm locations by the end of 2002. "Future plans include developing an integrated Wi-Fi/GPRS data card and other handheld devices to give customers seamless service between the two networks with high speed coverage where they want it and speed when they need it." (www.T-Mobile.com)

To be able to compete, T-Mobile should build its strategies and competencies around its customers' satisfaction. Customers today require ease of use and convenience when it comes to their cellular service provider. Many people are constantly switching from one provider to the next looking for a service that is accessible anywhere and has lower rates. Besides being on-line, it needs to establish a good physical retail presence (either direct or through VARs) so that customers can easily find it and if needed, talk to a live representative.

T-Mobile has plans to bring all the families of its other companies under one umbrella to capitalize on its name. In doing so, T-Mobile should distinguish itself as a global technology-based customer service business that just happens to be a wireless communications company.

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