As 4G services have saturated the country and competition for customers who use 4G networks has peaked, along with the earnings of the companies that provide it, America’s major carriers are rushing into superfast 5G services. The move is expensive but is the only way to start another round of demand for wireless services. T-Mobile US Inc. (NASDAQ: TMUS), the nation’s number three carrier by subscribers, promises it will have 5G in 30 cities by year-end.
T-Mobile management announced:
Build it (right) and they will come … to stay. T-Mobile is charging ahead to deliver real nationwide 5G, and today, the Un-carrier unveiled the next steps on that path at Mobile World Congress in Barcelona. T-Mobile plans to build out 5G in 30 cities this year, and customers in New York, Los Angeles, Dallas and Las Vegas will be first to experience it, when the first 5G smartphones launch early next year.
Unlike the Duopoly, T-Mobile is focused on delivering a truly transformative 5G experience. One that works on actual smartphones – not nomadic “pucks” or fixed routers. One that works for customers nationwide – not just in some hotspots. And, one that works with today’s advanced LTE networks – T-Mobile’s is the fastest ever – by harnessing 4G and 5G simultaneously.
The “duopoly” is undoubtedly the two largest carriers, AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ), which have such large subscriber counts that T-Mobile will never catch them. Despite T-Mobile’s claim, its service will not be much different from the 5G service of any other carrier, so its boast does not have much meaning.
John Legere, president and CEO at T-Mobile, who opines on anything and everything that comes to his mind, said:
Dumb and Dumber are in a meaningless race to be first. Their so-called 5G isn’t mobile, and it’s not even on a smartphone. It’s a puck?! You gotta be pucking kidding me! While the Duopoly focus on bragging rights, we focus on customers. T-Mobile has massively bigger plans for a truly transformative 5G experience on your smartphone nationwide. We’re playing the long game … the only game that matters.
“Dumb and Dumber,” he did not mention, are crushing T-Mobile in subscriber count.
For the most part, 5G service will be 5G service everywhere, and the ability of subscribers to differentiate will turn on the amount of geography covered. That will determine whether the current carriers can take business from one another. With AT&T’s and Verizon’s financial and marketing advantage, T-Mobile will get some of the new market, but 30 cities will not determine whether it wins or loses customers. The first carriers into those markets with strong coverage will have a tremendous advantage.