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Ever the disruptor, TMUS CEO John Legere has identified a combination so obvious that everyone else missed it: fusing mobile phones with tacos.
We’ve all been there, right? That listless, empty feeling while forlornly prodding our smartphone screen, just knowing there has to be more to it. But only now, thanks to T-Mobile US, do we realise that all we needed to do was nestle it in a warm, crispy taco shell and then slop spicy beef, salsa and guacamole all over it. Go on, give it a try, you’ll never look back.
Not really, but TMUS has genuinely teamed up with Tex Mex fast food chain Taco Bell to create some kind of hybrid store that will ‘…give the people even more of what they want: smartphones with a side of tacos.’ This is a bricks-and-mortar extension of come kind of promotional partnership the two organisations had previously.
“When we launched free tacos every week on T-Mobile Tuesdays, TacoBell.com had its highest online order day ever and T-Mobile Tuesdays was number one in the App Store,” said Legere. “Since then, Un-carrier customers have snagged more than 14 million free tacos from the app. People love tacos. And they love their phones. T-MoBell is the ultimate fusion of those two loves, and we can’t wait to show everyone what we’ve cooked up.”
They chose not to give whoever runs Taco Bell a canned quote in the press release, but it would presumably have followed similar lines. We would imagine Sprint is being lined up to run the delivery service while other rivals, having been caught flat footed by this bold move, must be scrambling to catch up. Expect to see Verizon 5G Guys and AT&FC before long.
A trio of telecoms trailblazers has claimed the world’s first low-band 5G data session on a commercial 5G modem.
T-Mobile US, Ericsson and Qualcomm were the operator, networking vendor and modem vendors involved, with T-Mobile chosen because the 600 MHz band forms a big part of its 5G plans. The demo was conducted at T-Mobile’s lab in Bellevue, Washington, using Ericsson’s Radio System and Qualcomm’s Snapdragon X55 modem.
“This modem will power devices that tap into the 600 MHz low-band spectrum we’ll use to blanket the country with 5G.” said TMUS CTO Neville Ray. “And we’re not stopping there. If regulators approve our merger with Sprint, we’ll have the crucial mid-band spectrum and resources needed to supercharge our network and deliver broad AND deep, transformational 5G across the U.S.”
“Today’s data call marks a significant milestone in 5G’s ongoing rollout across the United States, paving the way for the launch of commercial networks and devices on low-band FDD spectrum,” said Cristiano Amon, Qualcomm President. “This call demonstrates the ability to dramatically increase 5G’s global footprint and we look forward to continuing our work with industry leaders like Ericsson and T-Mobile to unlock the full potential of 5G for consumers and new industries around the world.”
“Ericsson and Qualcomm Technologies have successfully tested and commercialized 5G globally across different spectrum bands, and together with T-Mobile we have now reached another major milestone as we are enabling 5G on low bands,” said Fredrik Jejdling, Head of Networks at Ericsson. “This shows that our industry is now ready for building wider 5G coverage that will enhance end user experience.”
That’s about it really, but it’s a Friday in the middle of Summer so news is thin on the ground, alright? As you can see from the canned quotes, ‘firsts’ like these largely exist to give the parties involved a bit of publicity and make them look ahead of the game. Someone had to do 5G over 600 MHz first, we guess, so well done chaps.
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It looks like Sprint could trouser up to three billion bucks when it flogs its prepaid subsidiary Boost in a bid to placate antitrust authorities.
The Sprint/T-Mobile US merger saga has been going on for so long that people are starting to not care, but a recent set of negotiated concessions were enough to convince the head of the FCC to wave the deal though. The DoJ isn’t so sure, but they might as well go ahead with the placatory measures in the hope that it comes around eventually.
One of the biggest concessions will be selling Boost, a wholly-owned subsidiary of Sprint that specialises in prepaid contracts. TMUS is pretty hot on prepaid, so regulators concluded their combined efforts would take too much choice out of the prepaid market. Since this public commitment doesn’t put Sprint in the strongest negotiating position, the challenge is to get a decent price for Boost.
According to a Reuters report a company called Q Link Wireless is prepared to shell out somewhere between $1.8 billion to $3 billion for Boost. This is coming from the Q Link CEO, apparently, so we must assume it’s legit, but it also seems like a pretty broad range. What would make him pay almost double his lower figure? Some kind of bidding war presumably, so maybe he’s trying to scare off anyone not prepared to go to three bil.
The official line is that it depends on what he sees once he looks under the hood, with Sprint not yet having publicly disclosed key metrics such as churn, popular tariffs, etc. But FreedomPop is reportedly talking to private equity about getting involved and they would apparently be prepared to go up to four bil, so this has the feel of an auction carried out via the media.
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US operators have been reselling the location data they accumulate about their subscribers and have been slow to deliver on promises to stop.
This practice was already well-known by the time it was highlighted in an expose at the start of this year. At the time operators were quick to stress that they’re pulling out all the stops to protect their customers’ personal data but Federal Communications Commissioner Jessica Rosenworcel was apparently skeptical. Frustrated by their deafening silence on the matter she wrote to the four US MNOs at the start of the month to ask them what they were playing at.
Rosenworcel received relatively prompt responses from those operators and decided to publish them alongside a mea culpa that was probably directed more at other FCC Commissioners than herself. “The FCC has been totally silent about press reports that for a few hundred dollars shady middlemen can sell your location within a few hundred meters based on your wireless phone data. That’s unacceptable,” she said.
“I don’t recall consenting to this surveillance when I signed up for wireless service—and I bet neither do you. This is an issue that affects the privacy and security of every American with a wireless phone. It is chilling to think what a black market for this data could mean in the hands of criminals, stalkers, and those who wish to do us harm. I will continue to press this agency to make public what it knows about what happened. But I do not believe consumers should be kept in the dark. That is why I am making these letters available today.”
You can read the contrite and exculpatory responses here, but in case you can’t be bothered here’s a summary. AT&T said it started phasing out this sort of thing in June 2018, while still making location data available in emergencies. Additionally the letter attempted to distance AT&T from the reports in question and said it had stopped sharing and data with location aggregators and LBS providers on 29 March 2019.
Sprint said it current works with just one LBS (location based services) provider but will pack that in by the end of this month. T-Mobile said it had terminated all contracts with LBS types by 9 March 2019 and went on at considerable length to correct what it considers to be flawed reporting on how it used to handle this sort of thing. Verizon said it had terminated all location deals by the end of March 2019.
So that would appear to be that. All the operators have said they don’t deal with location data aggregators anymore and presumably Rosenworcel is a happy Commissioner. But the fact that they’ve only just stopped reselling their customer’s personal data, and even then only after persistent nagging and bad publicity, is a further illustration of how cavalier the tech industry has been with personal data to date.
German operator group Deutsche Telekom has reported solid Q1 revenue growth, driven largely by T-Mobile US.
As you can see from the table below, revenues and EBITDA all grew nicely in Q1 2019. Profits, however, went in the opposite direction, apparently due to one-off things like the cost of trying to get the merger between TMUS and Sprint approved. Speaking of the US the second table shows just how much of the revenue growth is attributable to TMUS.
|Proportion generated internationally in %||69.0||66.6||2.4p||67.8|
|Adjusted EBITDA AL||5,940||5,487||8.3||23,074|
|Adjusted net profit||1,183||1,190||(0.6)||4,545|
|Free cash flowa||2,370||1,382||71.5||6,250|
|Free cash flow ALa||1,557||1,318||18.1||6,051|
|Cash capexb(before spectrum)||3,682||3,076||19.7||12,223|
|Number of employeesd||214,609||216,926||(1.1)||215,675|
|Adjusted EBITDA AL||2,108||2,058||2.4||8,516|
|Number of employeesa||62,358||64,695||(3.6)||62,621|
|Adjusted EBITDA AL||2,679||2,331||14.9||10,084|
|Adjusted EBITDA AL||945||898||5.2||3,813|
|Adj. EBIT margin (%)||(0.2)||(2.3)||2.1p||0.5|
|Adjusted EBITDA AL||92||60||53.3||442|
“We got off to a successful start to the year,” said Tim Höttges, CEO of DT. “Deutsche Telekom has much more to offer than just our sensational success in the United States. We are seeing positive trends throughout the Group.”
Not included in his canned comments, but picked up by Reuters, was Höttges inevitable irritation at the amount of cash DT is having to drop on the interminable German 5G spectrum auction. We’re on round 305 of the bidding, believe it or not, and the total pledged has now reached €5,687,520,000. Expect to hear persistent muttering about how that’s money they can’t spend on infrastructure, etc, before long.
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T-Mobile US wasted little time in snapping up former Ericsson lifer Ulf Ewaldsson after he came on the market, to head up its 5G efforts.
Ewaldsson’s most recent significant position at Ericsson was to head up its struggling Digital Services division. This time last year he became another casualty of Ericsson CEO Börje Ekholm’s apparent desire to refresh the executive team by getting rid of some dead wood. He does it gently, however, by moving them to the position of advisor to the CEO for a few months before finally casting them adrift.
Following the well trodden path taken by his former boss Hans Vestberg, Ewaldsson presumably needed little persuasion to escape the Swedish winter and move state-side, although he might not find Washington state to be much of an upgrade weather-wise. He will be reporting into TMUS CTO Neville Ray.
“We are thrilled to share the great news that Ulf is joining our team of amazing leaders at T-Mobile who continue to show the other guys what it takes to win in wireless,” said Ray. “Just look at what we’ve done with 4G wireless! We’ve been the fastest for 19 straight quarters – nearly 5 straight years… and we’re just getting started.
“Adding Ulf’s passion and track record for driving innovation to the Un-carrier mix is going to take us to the next level. Ulf has achieved so many firsts and truly supported the evolution of technology for telecommunications across the globe. Bringing him on board is a total win for T-Mobile and we couldn’t wait to share it! He is going to be the perfect addition to our consumer-first Un-carrier team to drive our 5G evolution strategy!”
Have you noticed how similar to Trump’s tweets the canned quotes from TMUS are? Anyway Ewaldsson, does have good tech pedigree, having been Ericsson’s group CTO for five years before being handed the Digital Services poisoned chalice, so he should be a good person to be running the 5G side of things.