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T-Mobile USA, Inc.
Company typePrivate (subsidiary of T-Mobile International AG)
IndustryWireless telecommunications
PredecessorVoiceStream Wireless Inc. NASDAQ: VSTR
Founded1994 (1994) (as VoiceStream Wireless PCS)
FounderJohn W. Stanton
Headquarters
Bellevue, Washington
,
United States
Area served
United States
Puerto Rico
U.S. Virgin Islands
Key people
John Legere, President and Chief Executive Officer
ProductsMobile telephony
Wireless broadband
RevenueDecrease US$19.719 billion (2012)
Decrease US$(6.397) billion (2012)
Decrease US$(7.336) billion (2012)
Total assetsDecrease US$33.622 billion (2012)
Total equityDecrease US$6.115 billion (2012)
Number of employees
30,000 (2012)[1]
ParentT-Mobile International AG, a holding company of Deutsche Telekom AG
SubsidiariesGoSmart Mobile
Websitet-mobile.com
Footnotes / references
[2][3]
T-Mobile location in Houston, Texas

T-Mobile USA, Inc. is an American mobile network operator, headquartered in Bellevue, Washington, that provides wireless voice, messaging and data services in the United States, Puerto Rico and the U.S. Virgin Islands. The company is the fourth-largest wireless carrier in the U.S. market with 34 million customers and annual revenues of US$21.35 billion and its nationwide network reaches 96 percent of Americans. As of 2011, J.D. Power and Associates, a global marketing-information-services firm, ranked the company highest among major wireless carriers for retail-store satisfaction four years consecutively and highest for wireless customer care two years consecutively.

The company traces its roots to the 1994 establishment of VoiceStream Wireless PCS, originally a subsidiary of Western Wireless Corporation. Western Wireless spun off VoiceStream Wireless to shareholders in 1999, creating a public independent company, VoiceStream Wireless Corporation. In July 2002, VoiceStream Wireless Corporation was renamed T-Mobile USA, Inc. which operates as the U.S. operating entity of T-Mobile International AG, the mobile-communications holding company and subsidiary of Deutsche Telekom.

On March 20, 2011, Deutsche Telekom accepted a US$39 billion stock and cash purchase offer for the company from AT&T. The merger would have created the largest wireless carrier in the U.S., with nearly 130 million customers. The deal faced significant regulatory and legal hurdles. On December 19, 2011, amid heavy resistance from the U.S. government, AT&T CEO Randall Stephenson announced that the company had officially withdrawn their bid and agreed to pay T-Mobile a $4 billion breakup fee.

On Oct. 3, 2012, T-Mobile USA and MetroPCS Communications agreed to merge, which will allow the companies to better compete against other nationwide telecoms Sprint Nextel, AT&T Mobility and Verizon Wireless.[4]

On March 6th, 2013, the Department of Justice approved the merger[5]; Later on March 12th, 2013, the Federal Communications Commission also gave approval[6].

History

T-Mobile USA, Inc. traces its roots to the 1994 establishment of VoiceStream Wireless PCS as a subsidiary of Western Wireless Corporation. Spun off from parent Western Wireless on May 3, 1999, VoiceStream Wireless was purchased by Deutsche Telekom AG in 2001 for US$35 billion and renamed T-Mobile USA, Inc. in July, 2002.[7][8][9]

VoiceStream Wireless

VoiceStream Wireless PCS was established in 1994 as a subsidiary of Western Wireless Corporation to provide digital wireless personal communications services (PCS) in 19 FCC-defined metropolitan service areas in several western and southwestern states.[10] VoiceStream Wireless' digital, urban service areas complemented the analog, rural service areas marketed by Western Wireless under the Cellular One brand.[11]

Western Wireless spun off its VoiceStream Wireless division into a new company called VoiceStream Wireless Corporation in May 1999.[12] VoiceStream Wireless completed mergers with Omnipoint Corporation in February, 2000 and Aerial Communications, Inc. in May 2000.[13]

Omnipoint and Aerial acquisitions

In 2000, VoiceStream Wireless acquired two regional GSM carriers. Omnipoint Corporation, a regional network operator in the Northeastern U.S., was acquired on February 25, 2000, and Aerial Communications, Inc., a regional network operator in the Midwestern U.S., was acquired on May 4, 2000.[14] The combined company retired the Omnipoint and Aerial brands and completed integrating the three companies by converting to a single customer billing platform, implementing standard business practices and launching the VoiceStream brand and "GET MORE" marketing strategy in all markets.[15]

Deutsche Telekom acquires VoiceStream and Powertel

Transitional logo used by VoiceStream prior to the 2002 re-branding to T-Mobile.

On June 1, 2001, Deutsche Telekom (DT) completed the acquisition of VoiceStream Wireless Inc. for US$35 billion and Southern U.S. regional GSM network operator Powertel, Inc. for US$24 billion. By the end of 2001, VoiceStream Wireless had 19,000 employees serving 7 million subscribers.

In July 2002, VoiceStream Wireless Inc. took its current name, T-Mobile USA, Inc. and began rolling out the T-Mobile brand, starting with locations in California and Nevada.[16] T-Mobile USA, Inc. is the U.S. operating entity of T-Mobile International AG, the mobile communications subsidiary of Deutsche Telekom AG.[3]

SunCom acquisition

On September 17, 2007, the company announced the acquisition of SunCom Wireless Holdings, Inc. for US$2.4 billion; the acquisition closed on February 22, 2008. By September 8, 2008, SunCom's operations were integrated with those of the company. The acquisition added SunCom's 1.1 million customers to the company's customer base and expanded the company's network coverage to include North Carolina, South Carolina, eastern Tennessee, northeastern Georgia, Puerto Rico and the U.S. Virgin Islands.

Failed acquisition by AT&T

Main article: Attempted purchase of T-Mobile USA by AT&T

On March 20, 2011, DT accepted a US$39 billion stock and cash purchase offer from AT&T for the company. The acquisition was subject to regulatory approvals, a reverse breakup fee in certain circumstances, and customary regulatory and closing conditions.[8][17][18][19]

According to an industry analyst, after the introduction of the iPhone in 2007, T-Mobile began to lose contract customers, who dropped to 78 percent of subscribers in 2010, compared to 85 percent in 2006. Its high churn rate of 3.2 percent, compared to 1.2 percent at Verizon Wireless and AT&T Mobility, and the drop in contract customers made necessary investments in network upgrades and additional spectrum too risky, reinforcing DT's decision to sell.[20]

Randall Stephenson, the chairman and chief executive officer of AT&T, expressed his confidence in the deal being approved based on the benefit to the public of expanding wireless access and relatively robust competition in the wireless market. The Alliance for Digital Equality, the Hispanic Federation, the National Black Chamber of Commerce and California Democratic representatives Loretta Sanchez and Joe Baca all supported the deal. Consumer groups Public Knowledge, Media Access Project, Consumers Union and the Computer & Communication Industry Association opposed the deal. Opposition groups stated numerous concerns with industry consolidation resulting in a reduction in competition and job losses.[21]

If the merger had been completed, AT&T Mobility would have had a customer base of approximately 130 million users, making it the largest wireless carrier in the U.S.[8]

On August 31, 2011, the United States Department of Justice sued to block AT&T's merger with T-Mobile on the grounds that it would “substantially lessen competition” in the wireless market.[22] Further reports indicated that the FCC would likely oppose the merger.[23]

On December 19, 2011, in the face of this heavy resistance from the U.S. government, AT&T CEO Randall Stephenson announced that the company had officially withdrawn its $39 billion bid.[24] In an official statement, Stephenson addressed the continuing spectrum shortage (due to a significant increase in wireless demand), hinting that the company will continue to seek other options to solve the shortage in the short term.[25]

Job Cuts

On May 16, 2012, T-Mobile USA announced that it is cutting 900 jobs in an effort to preserve cash for further investment into its mobile network. This is in addition to the 1900 job cuts that were announced earlier in the year, which included the shutdown of several call centers.[26]

Proposed merger with MetroPCS

On October 3, 2012, MetroPCS reached an agreement to merge with T-Mobile USA, subject to regulatory and shareholder approval. MetroPCS shareholders are expected to hold a 26% stake in the merged company, which will retain the T-Mobile brand. While the merged company will still be the fourth largest carrier in the United States, acquiring MetroPCS will give T-Mobile access to more spectrum and financial resources to maintain competitiveness and expand its LTE network.[27]

On October 12 the unofficial T-Mobile blog TmoNews and a few day later on October 15, 2012 Cnet reported that a lawsuit was filed in Dallas, Texas by MetroPCS Shareholders who are suing Dallas-based MetroPCS, T-Mobile USA, its German parent Deutsche Telekom, and MetroPCS CEO Roger Linquist and MetroPCS board members in Dallas County Court claiming that the merger of T-Mobile USA and MetroPCS is "cheating shareholders" through what is called an undervalued merger. The suit alleges that the acquisition was tainted by conflicts that are tilted towards T-Mobile and is driven entirely by the board and company management, that together would control 15.4 percent of MetroPCS' outstanding stock and seeks liquidity of their illiquid holdings. The suit further claims that MetroPCS' officers and directors will receive millions of dollars in special payments that are not made to ordinary shareholders - for currently invested stock options, performance units and restricted shares, all of which shall, upon the merger's closing, become fully vested and exercisable and that the senior management will also get millions of dollars in change-of-control payments. The suit also claims that the board of directors are conflicted and serving their own financial interest. Shareholders say the $12.48 per share valuation is too low, that shares traded as high as $18.69 per share in May 2011 and that a stock analyst has set an $18.00 per share price target on the stock. MetroPCS shareholders say the deal is designed to ensure that the sale of MetroPCS is made to only one buyer, T-Mobile, by agreeing to provisions that would discourage competing bids. Those provisions include a no-solicitation clause that would prevent MetroPCS from communicating or providing confidential information to other bidders except under what are called "extremely limited circumstances." The board also agreed to a matching rights provision which allows T-Mobile to match any superior bid and also agreed to a $150 million termination fee if the merger with T-Mobile is dropped for a better offer. The shareholders are seeking an injunction and declaratory relief for derivative and class claims of breach of fiduciary duty, abuse of control, gross mismanagement, unjust enrichment and corporate waste.[28][29]

On October 18, 2012 in a formal move with the FCC, both T-Mobile USA and MetroPCS submitted official papers seeking approval for their anticipated merger. According to the fillings, both companies will be sending similar documents to US antitrust authorities, but specifically the United States Department of Justice at a later date. The new company (T-Mobile) will have 42.5 million customers according to the most recent data, or about 11.7% of the US wireless market. That number is comparative to the 58.5% combined share of AT&T and Verizon or Sprint’s 15.2%. The new company will continue to use the T-Mobile name and keep MetroPCS as a separate branding that will extend to new cities, according to fillings with the FCC.[30][31][32]

On March 6th, 2013, the Department of Justice approved the merger[33]; On March 12th, 2013, the Federal Communications Commission also gave approval[34].

Wireless networks

The company owns licenses to operate a 1900 MHz GSM PCS digital cellular network and a 1700 MHz/2100 MHz UMTS AWS digital cellular network that cover areas of the continental U.S., Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands. It provides coverage in areas in which it does not own radio frequency spectrum licenses via roaming agreements with other operators of compatible networks.

Cellular network

The company's predecessor, VoiceStream Wireless, began building a regional, 2G, 1900 MHz GSM, circuit switched, digital cellular network in 1994 and first offered service in 1996 in Honolulu, Hawaii, and Salt Lake City, Utah. From that starting point, the network has expanded in size through acquisitions of other cellular-network operators and additional spectrum purchases. The network has expanded in capabilities through the introduction of new technologies. VoiceStream upgraded the 1900 MHz network to include packet switching via General Packet Radio Service (GPRS), then increased packet switched data transmission speeds via Enhanced Data Rates for GSM Evolution (EDGE). In 2006, the company spent US$4.2 billion to purchase 120 D, E or F block 1700 MHz/2100 MHz AWS licenses[35] and began rolling out 3G UMTS services in those frequency bands. Most recently, the company has been[citation needed] upgrading network equipment and back-haul capabilities to enable first HSPA (High Speed Packet Access), then HSPA+ (Evolved HSPA) services in the AWS bands. It is marketing its HSPA+ services as 4G.

A T-Mobile administrative office in San Juan, Puerto Rico.

As of 2010, the company's network reached over 293 million potential subscribers.[36]

Packet-switched data upgrade

Packet-switched data service first became available to users in the form of General Packet Radio Service (GPRS). Packet-switched data speeds increased when Enhanced Data Rates for GSM Evolution (EDGE) was incorporated into the network. EDGE coverage is available within at least forty percent of the GSM footprint.[37]

Both voice capacity and packet-switched data speeds improved when 3G Universal Mobile Telecommunications System (UMTS) equipment was installed in the network. On January 5, 2010, the company announced that it has upgraded its entire 3G network to HSPA 7.2 Mbit/s, an improvement from its previous peak of 3.6 Mbit/s. It also said that it plans to be the first U.S. carrier to deploy HSPA+ across its network by mid 2010. The company has finished HSPA+ trials in Philadelphia, Pennsylvania, and has begun deploying HSPA+ across its network.

3G upgrade

In September 2006, the Federal Communications Commission (FCC) auctioned licenses in the first Advanced Wireless Services band. This band was an area of wireless spectrum, half in the 1700 MHz (1.7 GHz) and half in the 2100 MHz (2.1 GHz) frequencies, that was already in use by government services. The spectrum was planned to become available after the government users migrated to different frequencies.

The auction made numerous licenses available in overlapping market-areas, economic-areas, and regional levels. Each license was individually bid upon, and T-Mobile USA was the winner in 120 license auctions, at an aggregate price of $4.18 billion. As part of its winnings, T-Mobile USA gained nationwide coverage of 1.7 GHz and 2.1 GHz, with numerous areas being supplemented with addition licenses. Examples include New York City, Chicago, and Boston where T-Mobile USA acquired one-third (33 percent) of the available spectrum, or San Francisco, Houston, and Miami where they acquired 45 percent of the available spectrum.[38]

October 6, 2006, two weeks after confirming its winning bids, the company announced its intentions to create a UMTS third-generation, or 3G, cellular network with the spectrum it had won. It said it would utilize and build on the experience of T-Mobile International's European subsidiaries, which already implemented 3G networks. At the time of initial roll-out, the company intended to offer 7.2 Mbit/s service, making the company's 3G network the fastest in the U.S. The upgrade was forecast to cost $2.6 billion, in addition to the $4.12 billion spent to acquire the spectrum licenses.[39]

In the same announcement, the company indicated it had already begun to deploy about half of the upgraded equipment, beginning in major markets such as New York City. With the equipment in place, it would be able to activate its network as soon as the government agencies vacated the spectrum. The company had hoped to have its network activated by mid-2007, but as of September 2007, the government users had not vacated the AWS band.[39]

The company began selling its first 3G-capable phone, the Nokia 6263, in November 2007 and announced in February 2008 that its 3G network would finally be activated "within the next few months".[40][41] and released in the New York City market on May 1, 2008.[42]

To date, the company has launched its 3G network in most of its top markets. Additional markets will launch as they are tuned for optimal performance and in conjunction with marketing programs for new services or handsets. In 2009, the company upgraded more than 200 markets, covering some 208 million points of presence (POPS).[43]

HSPA/HSPA+ "4G" upgrade

The company has begun rolling out its HSPA+ capabilities throughout its cellular network, planning to complete an upgrade of the entire network by the end of 2010, covering 185 million potential subscribers. It is marketing its HSPA+ services as 4G. The company's HSPA+ is currently[when?] claimed to be faster than Clearwire's 4G WiMAX. On September 2, 2009, Nokia launched the N900, which was the first device to support HSPA 10.2.[44]

On June 28, 2010, the company announced that it will begin to upgrade the network from HSPA+ 21 to HSPA+ 42 beginning sometime in 2011.[45] T-Mobile is marketing its HSPA+ services as 4G.

4G LTE upgrade

On February 23, 2012, during the Q4 Earnings Call, the future of the T-Mobile 4G upgrade path was laid out. T-Mobile's LTE network will be rolled out on the AWS spectrum, and their HSPA+ network will transition to the PCS band, in order to achieve compatibility with other networks and phones in the USA, T-Mobile plans to begin this transition in early 2013.[46]

On August 21, 2012, The FCC approved a deal between T-Mobile and Verizon in which T-Mobile will gain additional AWS spectrum licenses in 125 Cellular Market Areas.[47]

Roaming

T-Mobile has roaming arrangements with a number of regional mobile network operators, including Centennial Wireless (a subsidiary of AT&T Mobility), Dobson Cellular (a subsidiary of AT&T Mobility), and Rural Cellular Corporation (a subsidiary of Verizon Wireless) and with the national mobile network operators AT&T Mobility and the former Alltel Corporation (a subsidiary of Verizon Wireless) GSM network. These carriers predominately provided service using the GSM 850 MHz band, and a dual-band phone is required to use both the native and affiliate networks.[citation needed] When roaming on these affiliated networks, airtime is deducted from the user's plan, effectively expanding T-Mobile USA's nationwide coverage.[48]

As of 2008, prepaid customers have almost all of the postpaid domestic roaming privileges and restricted international roaming to Canada and Mexico.[49]

On June 29, 2010, the company launched voice service in the Gulf of Mexico on GSM via roaming agreement through BroadPoint Communications. T-Mobile USA was scheduled to launch data service in Fall 2010.[50]

While international roaming is available to most customers, the service must first be activated by contacting customer service. Once international roaming is provisioned on a customer's line, there is no monthly fee to maintain the service.

In 2009, T-Mobile USA began removing AT&T Mobility roaming coverage in many locations across the country, and updated its on-line coverage maps [51][52] to reflect the smaller coverage area. AT&T Mobility roaming remains available in select locations, primarily on smaller carriers that were acquired by AT&T Mobility after long term roaming contracts were in place between T-Mobile and the smaller carriers, including Centennial Wireless and Edge Wireless.

Radio frequency spectrum chart

The following chart describes radio frequency spectrum bands accessible by the company's customers using compatible devices.

Radio frequency spectrum bands accessible by T-Mobile USA customers using compatible devices
Frequency Band Protocol Class Spectrum Purchased Service Began Notes
850 MHz/1900 MHz GSM/GPRS/EDGE/UMTS/HSPA 2G/3G n/a 1996 (2G) / 2012 (AT&T 3G) Not operated by T-Mobile. Competitor networks accessible via roaming agreements. After the failed acquisition of T-Mobile USA by AT&T, part of the failed acquisition was a 7 year AT&T 3G roaming agreement.
1900 MHz GSM/GPRS/EDGE 2G 1994 1996 Based on the original VoiceStream Wireless and other acquired operators' GSM PCS networks.
1700 MHz UMTS/HSPA/HSPA+ 3G/4G[53] 2006 2008 (3G), 2010 (Marketed as 4G) First carrier in the U.S. to deploy services on AWS frequencies (UMTS frequency band IV). Markets HSPA+ as "4G."
1900 MHz UMTS/HSPA/HSPA+ 3G/4G 1994 2011 According to reports from users, T-Mobile started to reapportion its PCS frequency (UMTS frequency band II) for UMTS service in some areas. Will be expanded during LTE upgrade.[54]
1700 MHz LTE 4G 2006 2013 Due to the failed acquisition of T-Mobile USA by AT&T, T-Mobile USA received additional UMTS frequency band IV (AWS) spectrum which will be used to begin deployment for LTE in 2013. Further AWS spectrum that will be employed for LTE was acquired from Verizon Wireless in summer 2012 as part of a deal involving Verizon's purchase of AWS spectrum blocks from several cable television operators.
External image
image icon THIS IMAGE, Shows how the T-Mobile spectrum was/is, will be in Mid-2013 and the final arrangement after the current "re-farming" effort.[55][56]

T-Mobile HotSpots

T-Mobile has used the term "Hotspot" to represent various products and technologies.

Wi-Fi network (public)

A T-Mobile store in San Jose, California

The company operates a nationwide Wi-Fi Internet access network under the T-Mobile HotSpots brand. The T-Mobile HotSpots network consists of thousands of Wi-Fi access points installed in businesses, hotels and airports throughout the U.S.

The T-Mobile HotSpot service offers access to a nationwide network of approximately 8,350 access points, installed in venues such as Starbucks coffeehouses, FedEx Office Office and Print Centers, Hyatt hotels and resorts, Red Roof Inns, Sofitel hotels, Novotel hotels, the airline clubs of American Airlines, Delta Air Lines, United Airlines and US Airways, and airports.[57]

The T-Mobile HotSpots network can be traced to the company's 2002 purchase of bankrupt wireless ISP MobileStar, which began building its network in 1998. After completing the purchase, the company expanded the network into 400 Borders bookstores, as well as 100 of the most-frequented airport clubs and lounges operated by American Airlines, Delta Air Lines, and United Airlines.[58][59]

Wi-Fi network (private)

T-Mobile has also used the term to describe Wi-Fi Access Points that it sold to end users in order to expand their cell phone network to phones equipped to also receive Wi-Fi using a VOIP-like technology. (The models included at least two by Linksys: the WRTU54G-TM and the WRT54G-TM and one by D-Link: the TM-G5240.)

4G network (reverse usage)

The most recent usage of the term "Hotspot" has a reverse meaning to T-Mobile's previous usage of the term. They are marketing 4G cell phone based devices (HSPA+ and LTE) that are Wi-Fi Access Points for up to five devices. Instead of using the Internet and Wi-Fi access points to expand the phone coverage area, this use of Hotspot means T-Mobile is using their network to create Wi-Fi access to the internet via their cell phone network.
As of this writing, there are two available devices, with a third on the way. The "T-Mobile 4G Hotspot" is model number MF61, made by ZTE. The "T-Mobile Sonic 4G Hotspot" is model number UMG587, apparently made by Huawei. There's also a forthcoming "T-Mobile Sonic 2.0 4G Hotspot", made by ZTE.

Current products and services

T-Mobile offers its customers a variety of plans which include individual plans, family plans, unlimited nationwide data, bring you own phone all with no annual contract.

Simple Choice Plan (UNcarrier)

Individual Plans:

All plans include Unlimited Talk, Text & Web

  • 500MB Included with Mobile Hotspot Service US$50.00
  • 2GB+500MB Included with Mobile Hotspot Service US$60.00
  • Unlimited Nationwide 4G with 500MB of Mobile Hotspot Service US$70.00

Family Plans:

All plans include Unlimited Talk, Text & Web, Lines 3-5 on a Family plan costs $10.00 more per line

  • 500MB Included with Mobile Hotspot Service US$80.00
  • 2GB+500MB Included with Mobile Hotspot Service US$100.00
  • Unlimited Nationwide 4G with 500MB of Mobile Hotspot Service US$120.00

UNcarrier plans are required for new T-Mobile customers as of March 24, 2013.

All UNcarrier plans include Unlimited Talk & Text with no two-year contract.

Customer will have the option to either pay off the entire cost of the handset or pay a down payment followed by paying the remaining amount through monthly installments over the course of 24 months. Customer may also bring in their own GSM phone instead, waiving the cost of having to purchase a new handset.

Mobile Broadband Internet

Mobile broadband is the wireless data service that allows a customer to connect to the full Internet on a mobile broadband-capable device through T-Mobile's network. Mobile broadband-capable Internet devices from T-Mobile® include tablets, netbooks, mobile hotspots, and laptop sticks. After a customer reaches their data plan limit, their data speed is reduced instead of incurring overage charges.

Mobile Broadband Classic Plans:

  • Overage-Free Plus (2 GB) US$39.99
  • Overage-Free Premium (5 GB) US$49.99
  • Overage-Free Ultra (10 GB) US$79.99

Mobile Broadband Value Plans:

  • Overage-Free (2 GB) US$29.99
  • Overage-Free (5 GB) US$39.99
  • Overage-Free (10 GB) US$69.99

Mobile Broadband Value Plans qualifies for a US$10.00 monthly discount (Must have active T-Mobile postpaid/flexpay voice line on the same account to qualify).

GoSmart Mobile

GoSmart Mobile is a T-Mobile USA subsidiary service brand which launched in Beta on December 7, 2012, and became officially available nationwide on February 19, 2013; GoSmart offers no-contract SIM wireless services.

Phones & SIMs

  • GoSmart Mobile SIM kit
  • Alcatel OT 838
  • ZTE V768

Plans & Services

  • US$30/mo. Unlimited Nationwide Talk & Text
  • US$35/mo. Unlimited Nationwide Talk, Text & Web ·2G speeds
  • US$45/mo. Unlimited Nationwide Talk, Text & High-Speed Web ·5GB of 3G speeds, reduced to 2G after

Customer service

Awards

From as early as 2004, the company has captured multiple J.D. Power annual awards in the areas of retail sales satisfaction, wireless customer care, and overall customer satisfaction.[3] In 2011, J.D. Power and Associates stated that T-Mobile retail stores achieved the highest ratings among major wireless carriers for customer satisfaction for the fourth consecutive year, performing particularly well in price and promotions.[60] Also in 2011, J.D. Power and Associates ranked T-Mobile USA highest among major providers in wireless customer care for the second consecutive year.[61]

Outages

Sidekick data outage

Main article: Microsoft data loss 2009

On October 1, 2009, Sidekick users lost all data functionality and some users also experienced personal data loss including contacts, notes, and calendars. On October 8, most data services were restored to some users but the company and Microsoft announced on October 10 that data "almost certainly has been lost as a result of a server failure at Microsoft/Danger."[62] On October 15, Microsoft said it had been able to recover most or all data and would begin to restore it.[63][64] A few weeks later, all Sidekick customers were able to recover their data via Danger's sync website using a restore file, or had the option to wait until data was restored to the device itself. Due to this outage, many users abandoned the Sidekick for another device, or left T-Mobile USA for another carrier entirely.[citation needed]

Network outage

On November 9, 2009, the company's subscribers lost the ability to send and receive calls and text messages.[65] The company confirmed the outage via Twitter and later stated that five percent of its user base had been affected. It blamed a software error for the service interruption, stating that a backend system software error had generated abnormal congestion on the network. The root cause was determined and steps were taken to update a patch on the backend as a permanent resolution.[66]

Marketing

Jamie Lee Curtis was the spokesperson for T-Mobile USA's predecessor, VoiceStream Wireless since 1998. VoiceStream's advertising slogan was: "Get more from life". During the transition to the T-Mobile brand, Jamie Lee Curtis continued as spokesperson for a short time and the slogan was changed to "T-Mobile. Get More."

Starting in 2002, the company's spokesperson was Catherine Zeta-Jones who was the main figure in its branding strategy. As of September 2006, Zeta-Jones had officially been dropped as the "face" of the company for its advertising campaigns due to a corporate rebranding strategy.[67] The company also relied on rapper Snoop Dogg as the spokesperson for its T-Mobile Sidekick in a series of commercials late in 2004, the company also released a series of Sidekick phones known as the D-Wade Edition for basketball player Dwyane Wade.

The company is also an official sponsor of the National Basketball Association, the NBA Rookie Challenge and the Women's National Basketball Association.

In 2009, it changed its approach to advertising, and moved from the "Get More" slogan to a "Stick Together" slogan to focus more on the personal aspect of staying together with those who matter the most to its customers.[citation needed] The slogan was also meant to promote its MyFavs calling-circle plan. With this the company also ended its relationship with Zeta-Jones, and now use mainly non-celebrity spokespeople (though Dwyane Wade, Charles Barkley, and Dwight Howard are featured in some commercials, in association with the company's sponsorship of the NBA as official wireless provider).

In late May 2009, Zeta-Jones was brought back as a company spokesperson to show customers how to pay less for their wireless plan in a new "Mobile Makeovers" advertising campaign that refers customer to third-party comparison site BillShrink.com.[68][69]

In late 2009, commercials for the T-Mobile MyTouch 3G featured the song "If You Want to Sing Out, Sing Out" by Cat Stevens[70] and celebrities such as Chevy Chase, Molly Shannon, Dana Carvey and Darrell Hammond.[71] Another commercial with the same song performed by a different artist showed Wyclef Jean, Avril Lavigne and Brad Paisley.[72]

Carly Foulkes is the spokeswoman for the myTouch 4G in commercials that parody the Get a Mac campaign. The model is known for Rugby Ralph Lauren ads.[73] [74] [75] Although Foulkes is often identified with the color pink, T-Mobile actually has a color trademark for the color magenta,[76] and markets itself using its corporate colors.[77][78] Virgin Mobile has, in turn, parodied the Carly Foulkes ads.[79]

In September 2010, the company launched "Kids are free till 2012" for family lines.

On December 1, 2011, a group of 100 Chicago-area women, along with Carly Foulkes, were featured in a flash-mob style performance at Woodfield Mall in Schaumburg, Illinois, where the group, dressed in magenta dresses, sang and danced through the mall's atrium to their cover of (There's No Place Like) Home for the Holidays. The performance was filmed and edited into a holiday commercial, which proved to be a success.

Labor relations

Certain T-Mobile USA employees and two labor unions have led multiple unionization attempts beginning as early as 2001. As of 2011, none of those efforts have been successful.

Formation of TU

In April 2008, the Communications Workers of America (CWA) and the German service sector union ver.di jointly formed a union for T-Mobile workers named TU. As of 2011, no T-Mobile USA work groups have elected TU as their representative.[80]

2009 coordinated organizing effort

CWA President Larry Cohen and a disguised, unidentified T-Mobile USA employee pictured at a 2009 press conference announcing a coordinated unionizing effort.

In 2009, a disguised, unidentified company employee, the CWA and ver.di launched a coordinated effort to unionize company employees. A spokesman for the CWA called on the company to stop resisting mobilization efforts and allow company employees to unionize as German employees of T-Mobile USA's parent company, DT, have done. In response, the company released an employee satisfaction study showing that more than seventy percent of the company's 40,000 workers were "very satisfied" with their jobs. Through a spokesman, the company stated, "Despite the Communication Workers of America's periodic organizing efforts for more than nine years, no group of T-Mobile employees has ever chosen to be represented by a union. While our company is always striving to find ways to improve, year after year, employees continue to view T-Mobile as a good place to work where they have no need for, or interest in, a union."[80]

Political pressure

In 2009, a number of politicians, in one case acting after lobbying efforts by CWA union activists, wrote letters to René Obermann, DT's chief executive officer, in an effort to influence T-Mobile USA's labor practices in the U.S.[81]

In a March 13, 2009, letter, U.S. Senator John Kerry (D-MA) asked "why the company's approach to labor rights are different in Germany than in the United States". In an April 30, 2010, letter sent after lobbying by Communications Workers of America activists, 26 Democratic members of Congress called on DT to protect and respect workers' rights in the U.S.[81] A separate July 1, 2010, letter from seven Republicans addressed the same issue.[82][83] On August 10, 2010, U.S. Senator Bob Casey (D-PA) released a statement in support of the worker's efforts to organize a union at the company.[84] In a letter, dated September 21, 2010, fifteen Californian Members of Congress urged Obermann to take action and implement fair and equitable labor relations.[citation needed]

In a November 5, 2009, letter, Thomas DiNapoli, New York State Comptroller and Trustee of the New York State Common Retirement Fund, stated concerns about "the potential impact on the value of T-Mobile that may result from a disenfranchised workforce and the associated negative publicity that may impact T-Mobile's profitability."[citation needed]

Reports

File:Lowering The Bar Cover 2010.09.22.jpg
A Cover image of a report written by John Logan and published in 2009 by American Rights at Work

On December 9, 2009, the non-profit organization American Rights at Work published a report written by Prof. John Logan, Director of Labor Studies at San Francisco State University, titled "Lowering the Bar or Setting the Standard? Deutsche Telekom's U.S. Labor Practices". The report details behavior by the company that the author perceives as anti-union including dissemination of anti-union materials, intimidation and threats directed at pro-union workers, "captive audience meetings" and the retention of anti-union specialists.[85] In the report, which is based on documents from the National Labor Relations Board, internal company memos and handbooks, and interviews with workers, Logan asserts that the company engaged in a systematic campaign to prevent employees from forming a union and that DT was guilty of operating by a double standard. He claims that Deutsche Telekom respects workers' rights in Germany, where it cooperates closely with unions, but mistreats workers in the United States and interferes with their right to organize.[clarification needed][86]

On September 2, 2010, Human Rights Watch released a report written by Lance Compa titled "A Strange Case: Violations of Workers' Freedom of Association in the United States by European Multinational Corporations". The report concludes that "company policy has translated into practices that leave the workforce fearful about even seeking union representation."[87] DT proclaims its adherence to international labor law and standards that are embodied in German domestic laws. But HRW found that "T-Mobile USA's harsh opposition to workers' freedom of association in the United States betrays Deutsche Telekom's purported commitment to social responsibility, impedes constructive dialogue with employee representatives, and in several cases, has violated ILO and OECD labor and human rights standards".[88]

Workplace activities

At the company's Allentown, Pennsylvania, call center, security guards were ordered by company managers to write up incident reports whenever union supporters appeared on nearby public grounds and to record the license plate numbers of employees who stopped to take leaflets. In 2006, the National Labor Relations Board found these activities to be in violation of Section 8(a)(1) of the National Labor Relations Act.[89]

In 2008, company management in the Pacific Northwest and Southwest Retail Divisions sent a memorandum to store managers instructing them to immediately report any union activity to their supervisors.[90] Human Rights Watch states, "The NLRB has long held that such activity interferes with, restrains, and coerces employees in the exercise of Section 7 rights in violation of workers' right to freedom of association."[91]

Information Security

Nicolas Jacobsen was charged with intruding into the company's internal network in January 2005.[92] Reports indicated that for about a year Jacobsen had access to customer passwords, e-mail, address books, Social Security numbers, birth dates, and Sidekick photos. Affected customers included members of the United States Secret Service. Secret Service informant identified Jacobsen as part of "Operation Firewall" which provided evidence that Jacobsen had attempted to sell customer information to others for identity theft. T-Mobile USA and the Secret Service did not elaborate on the methods Jacobsen used to gain access but sources close to the case indicated that Jacobsen exploited an unpatched flaw in the Oracle WebLogic Server application software used by the company.[93] Additional SQL injection vulnerabilities with the company's web site were reported by Jack Koziol of the InfoSec Institute.[94]

T-Mobile offers access to voice mail without the input of a password by default. Parties acting in bad faith may be able to access such voice mailboxes via Caller ID spoofing. To avoid this possibility, T-Mobile recommends that all customers password protect their mailboxes, but still offers the no password configuration by default due to customer demand.[95]

On June 6, 2009, a message posted from an email account "pwnmobile_at_Safe-mail.net" to the Full Disclosure mailing list claimed that the company's network had been breached and showed sample data. The sender offered "databases, confidential documents, scripts and programs from their servers, financial documents up to 2009" to the highest bidder.[96][97] On June 9, the company issued a statement confirming the breach but stating that customer data was safe. It claimed to have identified the source document for the sample data and believe it was not obtained by hacking.[98] A later statement claimed that there was not any evidence of a breach.[99]

Privacy and surveillance

T-Mobile USA received a portion of the 1.3 million largely warrant-less law enforcement requests for subscriber information (including text messages and phone location data) made in 2011, but refused to state how many requests it received.[100] It did say that in the last decade, the number of requests have increased by 12 to 16 percent annually.[101]

Data retention policies

T-Mobile USA retains customers' cell site data (phone movement history) for "a year or more"[102] but refused to comment on sharing a given customer location information with that customer.[103] It stores call and text message records for up to 5 years, but doesn't store text message content,[102] or web browsing activity.[102][104][105]

See also

References

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Official websites

Unofficial sites

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