Hello! And welcome to our Friday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCRWireless.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!
And without further ado:
Some weeks are more interesting than others, but few were as interesting as this past week, at least in the mobile space.
The week began on a bit of a dour note with both Verizon Communications and AT&T hinting that the market’s crazy-awesome price war was having an impact on their abilities to retain wireless customers as well as on the bottom line. Sort of made sense in that all those enticing offers would likely attract some to switch and that attempting to keep those they already had or – even better – stole from their rivals would in turn cost a buck or two.
However, these comments needed to be taken in context as both operators had just recently posted some of their lowest churn levels in recorded history as well as some of the highest revenue margins imaginable. So, a little off the top was really nothing to get too concerned about.
Just don’t tell that to the financial community, which couldn’t slash its ratings and forecasts fast enough. They weren’t necessarily screaming “sell, sell, sell!” but they did put a fiscal funk on two of the nation’s most powerful telecom operators.
Now, while the mobile industry was absorbing the news that the gravy train apparently does not include an unlimited amount of gravy, those pesky kids over at T-Mobile US figured this week was as good a time as any to place a flaming bag of dog poop on the doorsteps of Verizon and AT&T.
Having for the most part sat out much of the recent pricing frenzy, T-Mobile US broke out its Bic with new plans targeting the always valuable and rambunctious family demographic. (It’s the holidays, don’t you know.) The plans provided plenty of sauce, most of which you can catch up on here, but the biggest marketing takeaway was everyone’s favorite buzzword: unlimited. The carrier also rolled out its previously available four-lines/$100-per-month offer that it claims was its most successful promotion of all time.
(Some might say that these offers would also target Sprint, though Sprint’s own recent price changes give it the ability to provide similar pricing so the impact should be minimal. Also, Sprint last week went off and targeted Verizon Wireless and AT&T Mobility with its “Cut Your Bill in Half Event,” which some may have realized was not so much an “event” as it was an “offer.”)
I will admit that I am not much of a fan of some of the antics T-Mobile US CEO John Legere has unleashed, thinking that at times he is trying a bit too hard to be the “crazy millionaire.” But, I gotta admit that I am a huge fan of whatever it is he has brought to that organization. Can you imagine what the past 12 to 18 months would have been like if T-Mobile US remained on the track it was on pre-Legere?
(I guess some would say that had that happened there would likely not be a T-Mobile US as we know it as the federal government would have been fully in support of a merger with Sprint as both of those carriers would likely be in a world of pain.)
The new offers aren’t dramatically altering the competitive landscape, but in connection with the comments from Verizon and AT&T that their sterling metrics are being hampered by the ongoing price wars, they are a nice reminder from T-Mobile US that the hampering has an address.
Let’s hope that in the new year T-Mobile US’ current success or worries about the bottom line don’t impact its ability to throw down every once in a while. It’s good to see some carriers sweat.
OK, enough of that.
Thanks for checking out this week’s Worst of the Week column. And now for some extras:
A survey released this week by B2X Care Solutions of more than 2,500 smartphone and tablet users from around the world provided some expected insight into the importance of customer support and after-sale services, services that B2X provides. (Spoiler: consumers think those things are important.)
More interesting were the other “facts” found by the survey, including:
• Ninety-eight percent of Americans between the ages of 16 and 29 sleep with their smartphones in their bed or within arm’s reach. (Not sure what is meant by “sleep with,” but if it just means that they happen to own smartphones and also sometimes sleep, that number is not much of a surprise.)
• Eighty percent of Chinese own at least two smartphones. (Wow, now I don’t feel so odd.)
• One in six Brazilians would give up their spouse for a week before their smartphone. (Ouch!)
• One in seven Americans would give up their best friend for a week before giving up their smartphone. (Ouch!)
All very interesting stats that seem to indicate that people like smartphones. Who knew?
I know Auction 97 has slowed considerably over the past week, but can we all just sit back and admire the fact that more than $43.5 billion has been offered up so far for spectrum licenses that going into the event were considered “average.”
That amount is so much more than even the most drug-fueled crazy predictions that it is likely not to really sink in until years from now. Or at least until those payments come due. Any chance those stuck with the check can claim some sort of holiday season shopping disorder?
Finally, make sure to catch next week’s WOTW where I use the flimsy premise that since it’s the last official WOTW of 2014 to discuss how awesome WOTW was over the past 12 months and unveil my “Hammer-Lock” predictions for 2015. It’s really not to be missed.
I welcome your comments. Please send me an e-mail at dmeyer@rcrwireless.com.
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