We were among the first to tell you that T-Mobile planned to transition into a digital carrier, something that everyone now believes with Srini Gopalan taking over the CEO role from Mike Sievert on November 1st. It was during the summer when we told you how
T-Mobile reps were being forced to run a certain percentage of their transactions per month through the T-Life app. Reps were so concerned about meeting their goal that they wouldn’t sell T-Mobile subscribers coming into the store with a broken phone a new handset since the customer had no way to access T-Life.
T-Mobile pushes T-Life app on its reps giving away its future plans
T-Mobile later changed its rules to allow reps to open a brand-new device in the store if a customer comes in looking to replace a damaged or lost phone. By opening the new device, the rep can set up the T-Life app and run the transaction involving the replacement phone through the app. The rep is taking the chance that the customer has enough equipment credit or can make the down payment for the new phone.
We also told you about T-Mobile reps who lost their monthly bonus because they didn’t use T-Life enough during the month. One District Manager said at the time, “”How are we supposed to explain to our Reps that because of a lack of usage of an app that barely worked on the sales end in July (and still barely now) they’re going to lose upwards of a couple hundred dollars with ZERO notice that this was a possibility??” Reps were complaining that the T-Life app was buggy and wouldn’t always work right.
What I believe will happen to T-Mobile
What I believe will happen is that T-Mobile will shutter stores, lay off reps, and become a digital carrier like Verizon‘s Visible. T-Mobile could leave itself with a minimum retail presence just like Visible, which recently struck a deal to offer its plans at Best Buy stores and the retailer’s website and app. But even if T-Mobile does go all digital, it will not be like Visible for a major reason. T-Mobile owns its own network and spectrum, and Visible is a mobile virtual network operator (MVNO). This means that Visible needs to buy wireless service wholesale from one of the big 3 wireless firms in the U.S. (T-Mobile, Verizon, and AT&T) and sell it to its subscribers at a higher price.
Because it owns its own network infrastructure including spectrum and cell towers, T-Mobile has more control over its pricing than Visible. Even if T-Mobile becomes a digital carrier and consumers are forced to manage their accounts via the T-Life app, the carrier will be able to continue offering consumers deals on plans and new phones, while still operating a rewards program like T-Mobile Tuesdays.
T-Mobile’s wireless operations won’t change if the company goes digital
Even as a digital wireless provider, T-Mobile will offer both postpaid and prepaid services. The former bills you at the end of your billing cycle each month, while prepaid wireless firms bill you in advance. Visible is a prepaid wireless firm.
The bottom line is that even if T-Mobile does fully embrace a digital existence, its customers will end up enjoying the same wireless service they have today. Why shouldn’t they? The only thing that might be changing is how T-Mobile subscribers deal with the management of their accounts. The carrier’s wireless service will be run as it is now with its 2.5GHz mid-band spectrum continuing to make T-Mobile arguably the top provider of 5G wireless connectivity in the U.S.
Older T-Mobile subscribers, who might not be able to navigate their way around the T-Life app, will probably be given a special phone number to call. But it does appear that the carrier is committed to making this transition, which top executives hope will result in higher profits. Without leases to pay and monthly commissions to pass out, the company’s profits should grow and the stock price could rise. That is exactly what T-Mobile executives want and this is what we could see in the near future.
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