I have a question for you: Are the accusations and colorful language from T-Mobile US CEO John Legere ultimately helping or hurting his company and the industry? We can see pros and cons to this show, but there are definite areas where caution is needed. I would hope Legere wouldn’t want to hurt his company or the entire industry long-term in order to make short-term gains.
T-Mobile US tearing down wireless industry
Ever since Legere joined the struggling company a few years ago, he has been trying to shake things up. Actually tearing things down would be a better way to say it. T-Mobile US was dying on the vine and his job was to resuscitate it. To create a strategy and punch its way back onto the map. While he has done that and that’s a good short-term result, long-term it seems to be polluting the water in the entire wireless industry. And that could be harmful to T-Mobile US and many others as well.
I’ve been following Legere for some time. He did a great job with Global Crossing and is trying to do the same with T-Mobile US. This is a more delicate balancing act however, and he is taking a much heavier-handed approach this time. I wonder whether he really understands the longer-term damage he is causing to his industry with this strategy.
Legere has two choices: Either build T-Mobile US and raise it to the level of the competitors or try to tear down AT&T Mobility, Verizon Wireless and Sprint to his level. Unfortunately, he has spent the last several years taking shots at every competitor trying to bring them down to his level. Now he is trying to tell the federal government why small carriers should be treated more fairly than larger ones regarding allocation of spectrum.
T-Mobile US is not like AT&T and Verizon
AT&T and Verizon Communications are not like T-Mobile US. T-Mobile US is simply a wireless carrier. AT&T and Verizon are much larger and play in many more segments of the industry, including wireless, telephone, Internet, television and much more.
Just look at what AT&T and Verizon have been doing lately. AT&T is investing in and building its new Mexican opportunity as well as trying to acquire DirecTV to expand that opportunity around the United States. Verizon recently acquired AOL and also partners with companies in the cable television industry.
Companies like AT&T and Verizon are big and bold and growing, and continue to change the communications landscape. They are also very actively helping other industries go wireless, like health care, automotive, banking, retail and many others.
On the other hand, T-Mobile US, while an important player in wireless, is simply wireless. It is a much smaller player. There is nothing wrong with being simply wireless. There are many competitors like it that are growing and building strong businesses.
However, T-Mobile US complaining about AT&T, Verizon and Sprint in order to attract more of their type of customers is a shame. It makes T-Mobile US look bad, and at the same time makes its customers look bad. What the company doesn’t seem to understand is that customers want to do business with a winner. And while T-Mobile US has shown growth, its story is getting long in the tooth.
T-Mobile US seems to be focused on the youth market. It is improving the quality and reach of its coverage in some markets, but it still has a long way to go to catch up to the competitors. So its challenging language may attract more of the same kind of customer, however it makes the company look bad the longer it continues on this path.
Concern for T-Mobile US
In order to keep generating attention, the company keeps throwing gasoline on its tiny flame. Sure it raises a lot of stink each time it bursts, but it burns itself out quickly causing no lasting damage.
I am concerned for T-Mobile US. It is a company with good people, good customers and good investors. I want to see it successfully compete in the wireless industry. In fact, I want every carrier to do well in the competitive wireless industry.
However, I don’t want to see any player crap on the track. That’s not fair for any competitor, customer, investor or partner. Is it? When we were small, bad kids would be scolded and taken out of playtime. Is that really what John Legere wants us to think of T-Mobile US?
T-Mobile US should grow rather than tear down
Every carrier can do well focusing on different sectors. That’s what T-Mobile US should be focused on right now – not trying to burn down the entire industry just so it can look successful. Rather the company should be building itself up to the level of its competitors.
There is plenty of business if you do business the right way and build rather than tear down.
I believe T-Mobile US customers would like to be proud doing business with a winner. I also would like to be proud of T-Mobile US’ performance rather than watch its insulting antics, which at this point can only bring harm to it and to the entire industry.
Even political candidates moderate their language when they eventually run for office. Perhaps this is a lesson T-Mobile US can learn going forward. I hope so.
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