T-Mobile Rewrites Mobile Playbook as Disrupter

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Oct. 31 (Bloomberg) -- Bloomberg Businessweek staff writer Brendan Greeley examines the new strategy employed by T-Mobile to re-brand itself as the “un-carrier” in a bit to disrupt the mobile industry and attract and retain new customers. He speaks on Bloomberg Television’s “In The Loop.”

Of heavy lifting on your part.

As far as this hail mary pass, is it going to work?

The idea is, we are going to do everything cheaper and everyone else, you can deal with what we are doing.

We will have to see whether it works two years from now.

They need a lot of money to buy spectrum in 2014. right now, he is being wacky.

He is swearing at press conferences, talking smack about other ceos at other companies, he wears his t-shirt under his blazer.

This is like tech ceo stuff, not like telekom ceo stuff.

Basically, he woke up, i have nothing to lose, i'm going to go for it.

Chips will fall where they do.

They look closely at average revenue per user.

Arpu is remarkably steady over the last few years.

Most companies managed to hang on to their arpu.

T-mobile alone has been dropping its arpu, dollar by dollar, for the last two to view years.

That is one of the difficulties that t-mobile faces when you compare it to its peers.

It has a smaller network than its peers.

It is saying, our network is big enough.

200 million people.

Not as big as verizon, but it is big enough or you might consider using us, and we will compete on price.

Shocking that it is novel in the telecom market that they will compete on price.

Usually analysts look at drops in arpu, they think it will go on for a couple of quarters, and then everyone will increase the prices.

I think they are trying to mess up the market for everyone.

If we are going down, you are all coming down with us.

If you compare arpu in the u.s. compared to europe, it is $49 a month.

In europe, $27. there is a long way to fall for the competitive market.

I know t-mobile is basically giving away tablet data for free.

This is part of the kicking and punching.

What will that do?

They have this strategy called un-carrier.

They are offering a servant -- certain amount of free data.

200 megabytes, not a whole lot of data, but they are still doing the same thing the carriers have always done.

They are putting a cap on data.

The data cap itself does not solve their cost problem.

They're real problem is congested at certain hours.

If they were worried about high use, they would be charging more during peak hours.

If you look at their data strategy, un-carrier only go so far.

Thank you.

A cool piece.

For more, you can read in the latest edition of "bloomberg businessweek" which hits the

This text has been automatically generated. It may not be 100% accurate.

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