Cell Life

T-Mobile, USA announced yesterday the launch of a 3G UMTS/HSPDA based network in New York City. The plan is to rollout 3G in various metros around the country where T-Mobile offers service. This leads to intensification of competition in the 3G arena with all major US wireless carriers now providing service in 3G spectrum. T-Mobile has a niche in younger segment and has captured the hearts and minds of the college crowd with compelling products like SideKick (of course iPhone is the new fad on the campus now) and innovative rate plans like MyFaves sharing plan.

T-Mobile brings some strategic advantages in the 3G race. Though the smallest operator among the big 4 in US, they are owned by the venerable Deutsche Telekom (DT) of Germany - one of the largest carriers in Europe and a major GSM player. GSM is the dominant mobile standard in the world and T-Mobile, USA is only one of two major US carriers to support this standard (the other being AT&T). A 3G phone from T-Mobile, USA will allow seamless international 3G roaming on the parent network in Europe plus T-Mobile, USA can leverage the years of experience T-Mobile Europe has in 3G space.

T-Mobile has excelled in the younger segment in US markets - a segment which tends to use high speed data services like messaging and mobile web. So a 3G launch bodes well for this firm and one can expect high uptake in its customer base for the new service.

The chess moves in the US carrier space continue to get more interesting everyday. Yesterday, a press report suggested that DT was planning a run on Sprint, the third largest US carrier, which is facing severe operating trouble and is available for a deep discount. A combined Sprint and T-Mobile USA would face difficult integration issues but would create a dominant player in the critical US market, able to compete better with the biggies, namely AT&T and Verizon, in the US wireless space.

MT