T-Mobile USA, the US wireless subsidiary of incumbent German telecom carrier Deutsche Telekom (DT), is set to launch a new wireless service for corporate customers today. The service integrates T-Mobile BlackBerry smartphones with Wi-Fi (wireless broadband) network. T-Mobile USA already markets similar service for residential customers.
The new corporate Wi-Fi service ties up with office PBX system and enables employees to access Wi-Fi network using their BlackBerry cellular phones in the office, which eliminates the need for wireline phones. This will offer meaningful cost savings on international long-distance calls and roaming while providing greater convenience to businesses. To avail the service, enterprises have to pay a flat monthly fee (include provision for unlimited Wi-Fi calls) in addition to the regular mobile tariffs.
T-Mobile USA is contending in an increasingly consolidating industry. Verizon (VZ) has become the number one wireless carrier in the US after its consolidation with Alltel Corp in early 2009 while AT&T (T) is set to acquire Centennial Communications Corp (CYCL), the ninth-largest wireless service provider in the US . T-Mobile USA is becoming increasingly isolated.
Due to their size and scale of operations, T-Mobile USA’s larger peers are able to deliver services in a more cost-efficient manner, which is affecting the company’s position in the market. T-Mobile USA’s market share reduced to approximately 12% at the end of 2008 from 15% registered in 2007. The company registered just 325,000 new customers in the last quarter compared to 1.4 million and 1.1 million added by AT&T and Verizon, respectively.
The corporate Wi-Fi service represents T-Mobile USA’s latest effort to counter stiff competition from its peers in the US wireless market. This new service will strengthen the company’s foothold in the enterprise communications market and offer a fresh revenue stream.
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