T-Mobile Shocks the Market – Will Enterprises Take Note?

Spend Matters welcomes another guest post from Matt West of NPI, a spend management consultancy focused on delivering savings in the areas of IT, telecom and transportation.

T-Mobile served a dish of surprise earlier this week when it reported its second quarter of subscriber growth, after four years of decline. The carrier added 648,000 net subscribers in the third quarter – nearly 200,000 more than expected by industry analysts.

So, how did T-Mobile stack up against the competition?

  • Verizon Wireless added 927,000
  • AT&T added 363,000
  • Sprint added 360,000

While T-Mobile didn’t come close to Verizon, the industry was shocked to learn that T-Mobile’s subscriber base outgrew those of AT&T and Sprint. Does this mean T-Mobile may finally take a bite out of the enterprise market? Maybe.

As the fourth largest U.S. mobile provider, T-Mobile has always been considered a consumer carrier – rarely a provider of choice for the enterprise. But that may be changing. For starters, its parent company is Deutsche Telekom, the 10th largest carrier in the world, which has strong enterprise market share outside of the U.S. Furthermore, BYOD has had a neutralizing effect as fewer enterprises dictate which carriers and devices must be used to conduct business.

It’s hard to determine if T-Mobile is capturing a larger portion of the enterprise user market. But one thing is for certain: T-Mobile is becoming a more attractive option.

Take a look at the carrier’s Simple Choice Plan. The plan includes unlimited texting and data in more than 100 countries. For the global and traveling workforce, consider the positive implications for cost and ease of use. T-Mobile is also the only carrier to separate the plan from the phone. There are no annual service contracts, and plans are charged separately from devices.

These moves may not be game changers, but they’re certainly a step in the right direction. Enterprises and enterprise users are fed up with the complexity of doing business with telecom and IT providers. Those providers that make it easier to purchase, use, maintain, and upgrade technology have a tremendous market advantage.

T-Mobile may surprise us yet.

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