T-Mobile USA Blames Lack of iPhone for Customer Loss in 4Q 2011

T-Mobile USA today announced earnings results for the fourth quarter of 2011, revealing a net loss of over 800,000 contract subscribers during the quarter. The carrier, which is now the only one of the four major U.S. carriers to not carry the iPhone, specifically blamed the launch of the iPhone 4S for the defections, mentioning the iPhone by name seven times in its release.

Sequentially, the decline in branded net contract customers was driven primarily by higher branded contract deactivations as a result of the launch of the iPhone 4S by three nationwide competitors in mid-October.

Following the collapse of a deal that would have seen T-Mobile USA acquired by AT&T, T-Mobile USA is seeking to reposition itself with a "challenger strategy" and move aggressively to roll out 4G LTE services beginning next year.

t mobile usa logo
Other U.S. carriers have already been rolling out their LTE networks for some time, but T-Mobile has been behind that curve as it has relied on HSPA+ technology that previously gave it an advantage over some of the other carriers in data speeds. But with AT&T having upgraded its own network to HSPA+ even as it is already building out LTE, T-Mobile is now finding itself scrambling to recover from the holding pattern is was in while the AT&T acquisition deal was pending.

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Top Rated Comments

swissmann Avatar
161 months ago
I'm a T-mobile customer. I even just ditched my first generation iPhone (which I got for free for working at Apple) in favor of an HTC MyTouch 4G. Compared to my old iPhone it is much better of course. Compared to my experience with the iPhone 4S there are some things better and some things worse. Overall I say the iPhone 4S is superior.

But beat this. I paid $200 for my phone (including 32 GB SD card). I pay $50 a month for Unlimited Talk, Text, and Web (first 2 GB at high speed). I have yet to come near the 2 GB mark before my data gets throttled. So for 2 years I spend $1,400. I compare an AT&T plan which is the same but 3 GB and then paid for usage over that and I'm at $299 for a 32 GB iPhone and $119 a month for a total of $3,155. Every 2 years I'm can buy something like a 27" iMac with the left over $1,755!

I'd rather have an iPhone than a MyTouch but I'd rather have a MyTouch and a 27" iMac (or grocery money) than just an iPhone.

Only one time in the last 10 plus years was I in a situation where a Verizon customer had coverage and I did not.

I think all carriers should be at the price point T-Mobile is at. People I think you are paying too much for your phone and coverage. No wonder we in america are struggling financially.
Score: 6 Votes (Like | Disagree)
Mad-B-One Avatar
161 months ago
Too sad. I liked their service but I switched for the same reason when Verizon started the iPhone. T-Mobile had better contract conditions even though their 3G network was a little thin in rural areas.

In the long run, I think we need T-Mobile on the US market as a competitor. Their service was one of the best I've seen so far. I have a Sprint work phone, a Verizon iPhone and my wife has a AT&T iPhone (had U.S. Cellular before - worst of all). So, I have some experience with the other major players. T-Mobile has the best plan for the buck and coverage - in my opinion.
Score: 6 Votes (Like | Disagree)
notoriousceo Avatar
161 months ago
or T-Mo can blame themselves for getting a new pink girl...
Score: 6 Votes (Like | Disagree)
Apple 26.2 Avatar
161 months ago
Not being a fan of Deutsche Telekom, I say good... but the U.S. needs competition, so come on T-Mobile, get the with the program!
Score: 5 Votes (Like | Disagree)
snebes Avatar
161 months ago
or T-Mo can blame themselves for getting a new pink girl...

What happened to Carly?? They are nuts to drop her!
Score: 5 Votes (Like | Disagree)
uknowimright Avatar
161 months ago
Yup.

T-Mobile: Sorry, but we're not getting the iPhone
http://news.cnet.com/8301-1035_3-20112426-94/t-mobile-sorry-but-were-not-getting-the-iphone/

"T-Mobile Chief Marketing Officer Cole Brodman posted a letter to customers on the company's blog yesterday, saying that while he would love to carry the iPhone, the company is currently focusing on 'the best that Android has to offer.'"

ROFLMAO!


of course you would leave out this paragraph

We've heard from many customers who love their T-Mobile service, but are disappointed that we don't carry the iPhone. To these customers, first, thank you for your business. Please know that we think the iPhone is a great device and Apple knows that we'd like to add it to our line-up. Today, there are over a million T-Mobile customers using unlocked iPhones on our network. We are interested in offering all of our customers a no-compromise iPhone experience on our network.
Score: 4 Votes (Like | Disagree)