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5G Evolution

5G Evolution

T-Mobile's UnCarrier Success Breeds Imitations in Sweden & UK says Strategy Analytics

Via Strategy Analytics Press Releases

Jun 24, 2015

Imitators Eye T-Mobile's 1.4 Percentage Point Postpaid Revenue Share Increase

Boston, MA - 22 June, 2015 - T-Mobile USA’s successful UnCarrier strategy has been increasingly imitated around the world as mobile operators such as Sweden’s Tele2 and, most recently, the UK’s Three update their approaches in markets where being pro-customer has more benefits than just being the best value player. According to the Strategy Analytics’ Wireless Operator Strategies report “Challenger Strategies: Three UK Adopts the UnCarrier Marketing Approach”, the customer friendly service structure and marketing are creating compelling messages for consumers.

Click here for the report: http://bit.ly/1eDS2sc

Other key findings of the report include:

  • T-Mobile’s postpaid subscription share began to rise straight after it March 2013 UnCarrier launch, with its postpaid service revenue share growing by Q1 2014. The latter has increased by 1.4 percentage points between March 2013 and March 2015.
  • It is a little early to see a strong impact from the Tele2.0 launch in November 2014; however its mobile EBITDA performance was particularly strong, recording 20% year-on-year growth in Q1 2015 in an overall market down 1%.
  • The key differentiators in Three’s “When stuff sucks, #makeitright” campaign, free international roaming and no premiums for 4G, are likely to become the norm in the UK under competitive or regulatory pressure. Three will need to work harder to stand out from the crowd as uniquely pro-customer.

T-Mobile USA Market Performance

Quotes:

Susan Welsh de Grimaldo, Director, Wireless Operator Strategies , said “T-Mobile USA has registered strong results from its pro-customer UnCarrier program. The message of more flexible pricing terms and device purchasing options has resonated well with consumers and has been copied by much of the competition, while it has pushed further with pricing enhancements such as better international roaming and rollover data plans.“

Phil Kendall, Executive Director, Wireless Operator Strategies , commented “It is important to note that success with an UnCarrier strategy, which gives customers more freedom to come and go as they choose, has to be built on getting the basics of service provision right: network quality; excellent customer service; and strong customer segmentation. Network quality is the most important here, with Tele2 and Three working hard to talk up their respective network strengths.”

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