Business News: Consumer’s favourite T-Mobile, trying to smash into the business world.
T-Mobile is a consumer favorite, but an undertow when it comes to serving businesses. The “Uncarrier” wants to make that change with the launch of 5G.
The company unveiled a number of new offerings for corporate customers on Thursday: enterprise wireless plans with unlimited data and 5G access, cloud-based workplace communication tools and a “Home Office Internet” program.
The new services are not only designed to leverage T-Mobile’s 5G network, but also the massive shift to work from at home during the pandemic. 5G is the next generation wireless networking technology that boasts faster speeds and higher bandwidth than existing 4G LTE networks.
This is a significant change in the strategy for the country’s third largest wireless operator. In its announcement, T-Mobile (TMUS) acknowledged that competitors AT&T (T) (CNN’s parent company) and Verizon (VZ) hold more than 90% of the wireless business market.
But T-Mobile believes it can forcefully penetrate the enterprise 5G market, which is expected to amount to at least $ 40 billion by 2025. While enterprise applications may be of lesser interest to the average consumer, they are expected to be the main source of revenue. for the network operators, who have spent years and billions of dollars to implement 5G.
“We now have the resources and an unrivaled network to not only be in the game, but to change the game,” CEO Mike Sievert said at a press conference Thursday.
Its other new product is T-Mobile “Home Office Internet”, a tool designed to replace workers’ sometimes irregular home Internet connections. If a company subscribes to this service, T-Mobile will ship routers to their employees that connect directly to cellular networks to provide Internet to work devices, so remote workers don’t have to share the same Wi-Fi connection with members of the family stuck at work or school from home.
New customer acquisition in T-Mobile’s business-to-business segment grew 300% in 2020 and revenue from the segment was up 200% in the same time frame. The company expects growth to continue.
“If you just look at the math … [it will be] a $ 40 billion market over the next five years and T-Mobile has less than 10% of that, so we think there is a huge revenue expansion opportunity for us, “said Katz.
Although AT&T and Verizon have discussed corporate uses of 5G as factories with private networks full of connected robots that will make manufacturing safer, these often involve additional investment and infrastructure implementation. T-Mobile is also working on these kinds of offerings, but Katz said the company is focusing on services that businesses can use right away, a need that the pandemic has brought into focus.
“We’re not going back to the way we worked,” Katz said. “We wanted to have a suite of services that would allow employees using the mobile network to truly work from at any place,”
For years, T-Mobile has followed AT&T and Verizon in the corporate sector as it sought to grow and improve its network, Katz said. But now T-Mobile’s single spectrum portfolio for 5G could give it an edge: it’s well positioned to deliver 5G business services that don’t require you to be in one centralized location, because it’s got a large chunk of “midband” spectrum. “as part of its acquisition of Sprint last year. AT&T and Verizon still can’t match it, he noted.