October 13, 2009 | by Andrew Kameka
Deustche Telekom, parent company of T-Mobile USA, knows why it lost customers. While many blame low-cost plans offered by smaller carriers, CFO Timotheus Hoettges blames the loss on the lack of 3G speed availability. Hoettges said, “There is no question that we lost customers because many of our customers couldn’t get 3G.”
T-Mobile has been churning out network updates for its 3G expansion over the past year in an effort to please subscribers and gain some new ones. T-Mo has yet to blanket the country in 3G speeds like its rivals, but the carrier is in the process. T-Mobile’s HSPA rollout is expected to cost about $5.2 billion this year and deliver speeds as high as 21Mbps. Philadelphia already has such a network.
CFO Hoettges says the company plans to build its network in the US quickly. There’s talk of Deustche Telekom purchasing MetroPCS or Clearwire, buying more licenses, or forming partnerships with other carriers as possible methods of doing this. Whatever it takes, Hoettges made it clear that T-Mobile has to step up its data offering, saying, “We now have to make sure that we can capitalize on the network in the top-10 cities where we have invested.”