A Business Technology Place

TMobile – Bold and Driven

Disclosure: I am an active TMobile subscriber.

A bold and driven business leader.

Are you keeping track of movements in the mobile phone industry in the United States? In the two most recent reporting quarters TMobile, once headed for the history books, reported  subscriber growth in half million chunks. While not profitable in the most recent quarter, the company reported a nine percent growth in revenue. It seems likely that the growth in revenue will lead to profitability and investors have responded by driving up the stock price. Yes, this is the same TMobile that Deutsche Telekom wanted to sell. It’s the same TMobile that AT&T was ready to buy but denied by the government.

Enter John J. Legere as Chief Executive Officer. James Stewart of the New York Times calls him brash and disruptive. I see Mr. Legere’s actions as bold and driven. You have to admire someone that is willing to forge a different path in an industry that strives on sameness.  He punted the two year contract, the cash cow of the mobile phone industry. He’s also recently setup free international text/data and wireless data for tablets. Customer friendly? Yes.  Profit friendly? Yes, if his gamble drives enough new subscribers and revenue.

Simplification

What I like most about Mr. Legere’s plan is the simplification to consumers. Who enjoys sorting through multiple plans with minutes, data limits, text limits, and contracts? The new TMobile no contract plan is easy to understand and makes basic cell and data services affordable. Consumers have responded favorably and TMobile is adding many new subscribers.

The last frontier.

I think the last frontier now for Mr. Leger to conquer is that of reliability and service.  TMobile has made improvements to its mobile network infrastructure. But the coverage maps are still lacking compared to some of the other competitors. This may be the hardest battle of all for Mr. Leger. It will require investment. But he’s off to a good start. Maybe he’ll find a way to disrupt the service once again.  Competition is fun to watch and will benefit all consumers in the long run.