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T-Mobile USA on the road to success

  Bonn/Bellevue, June 11, 2023
  • T-Mobile USA on the road to success: T-Mobile Group's growth driver in winning new subscribers
  • Two years after acquisition: Clear signals for positive business trend — revenue doubled
  • Obermann: T-Mobile had a strong start into 2003
  • Dotson: T-Mobile USA in leading position with contract subscribers

Two years after the acquisition of T-Mobile USA (previously VoiceStream/Powertel) René Obermann, CEO of T-Mobile International AG & Co. KG presented positive results. The signals for continued growth have become more than clear. In the last financial year the company achieved a positive EBITDA contribution of EUR 524 million for the first time, which in the previous year was still at EUR —258 million. T-Mobile had a strong start into 2003 — building on significant contributions from T-Mobile USA, Obermann underscored. In the first quarter of this year EBITDA was already at EUR 323 million. In the year under review, revenue of T-Mobile USA more than doubled from EUR 2.8 billion to EUR 6.1 billion, a trend that continued in the first quarter.

Obermann emphasized that T-Mobile USA is in a dynamic and competitive market environment currently on No. 3 position on a global level 
" More than 60 percent revenue is generated from outside our home market," Obermann said. " Level of internationality is key to success," he continued. 
If compared to those players with a strong international focus, T-Mobile is even No. 2 worldwide.

Robert Dotson, CEO and President T-Mobile USA, spoke of the significance of T-Mobile USA for the whole Group. With almost a million new subscribers, the company was the growth driver in winning new subscribers in first quarter 2003. It had earlier passed the mark of ten million subscribers for the first time. 

About 70 per cent of the Group's new subscribers now come from the USA. T-Mobile is also leading the field with contract subscribers. Dotson emphasized that 87 per cent are contract subscribers, and on average they make calls to the value of EUR 44 per month.

Obermann continued stating the advantages of a global company. Being part of the group pays out for customers and national companies, he said. Therefore price reductions, optimisation of capital investment and
time-to-market reduction could be achieved. This allows for market trials in one market, and when successful, to launch the product in the whole group. Additionally costs could be saved. The t-email platform was developed only once and is now available in the group worldwide. Finally, subscriber fees decreased by more than 60 per cent for larger amounts of subscribers for data services.

" Our global status places us in a position of strength to capture and lead the mobile data services market," commented Nikesh Arora, Chief Marketing Officer, T-Mobile International. " We now have a framework in place to provide superior products to consumer and business customers across a common multimedia platform, supported and enhanced by an exciting global brand."

The recent generation of global handset portfolio like RIM BlackBerry or Samsung V200/205 are examples of successful market introductions worldwide referring to strong products and a strong brand. The new version of the so called Prosumer BlackBerry with T-Mobile's E-mail Push-Services promotes the ability for small and medium sized businesses to get and send their e-mails automatically when they're on the road. " We are committed to making the workplace wireless," explained Arora.

Immediate access to the world of t-zones by pressing the t-zones button, allowing customers to remotely access to information, entertainment, videos and downloads, e.g. the Samsung V200, is a further example for leveraging a broader customised portfolio to stimulate data usage. 

Obermann wants to steadily continue T-Mobile's success story: " Our goal is to make even better use of the benefits of the transatlantic presence through carefully managed projects between Europe and T-Mobile USA," he said with regard to the introduction of BlackBerry first in the USA.

T-Mobile complements its existing wireless voice and high-speed- data network by providing WiFi wireless broadband accesses in convenient public locations where people typically frequent when they're away from their home or office. To date, T-Mobile has the largest Wi-Fi network in the world with over 2,700 locations including select Starbucks coffeehouses, Borders Books and Music, airports, and airline clubs.

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