T-Mobile USA has unveiled its strategy for the coming four years, focusing on gaining market share with a challenger strategy especially on the mobile internet market. The revenues are to by USD 3 billion by 2014 under the "Grow" program, for example by offering customers the best data plans for the fastest mobile data performance in the top 100 US markets. The "Reinvent" program launched at the same time is aimed to make additional gross savings of USD 1 billion by 2013. By 2015, the adjusted EBITDA margin from service revenues is set to increase from its current level of just under 30 percent in the first nine months of 2010 to the mid-30s percent. The contract churn rate is to be reduced towards 2 percent in 2011 and below 1.8 percent in 2012. One of the key aspects of the new strategy is affordability: T-Mobile USA already offers the latest HSPA devices at low prices and a range of data plans to suit newcomers through to heavy users of the mobile internet. At the same time, the operator confirmed its goal of extending its current lead with HSPA+ technology as the largest nationwide network by doubling the transmission speeds to 42 Mbps capability, calling its network 4G. Also part of the new strategy: greater network coverage and improving in-home coverage. This improvement is intended to become a key factor in customer acquisition and retention. The new strategy also includes a multi-segment approach: T-Mobile USA is extending its range of offers for business customers and further revenue opportunities could be found by pursuing additional MVNO and co-branded efforts.
Another important part of the strategy is improving T-Mobile USA's spectrum position. Deutsche Telekom is exploring various options to acquire additional spectrum and reduce the gap regarding economies of scale compared with its larger competitors, including partnering with other companies. Deutsche Telekom CEO Rene Obermann and T-Mobile USA CEO Richard Humm stressed the strength of the US unit, which is generally strong enough to fund itself and will do this with regard to future investments. At the same time, T-Mobile USA is considering selling its nonstrategic assets, particularly some of its cellular towers, down the line to raise cash for further investments, according to Obermann during the presentation cited by Dow Jones Newswires. Humm added that T-Mobile will also change its marketing strategies shifting from a purely national marketing campaign to one that has more region-specific advertising.
