T-Mobile, the fourth-largest mobile carrier in the US, could use a sales agreement from its parent company, the Deutsche Telekom AG, to carry Apple’s iPhone on its network. In turn, this may help the US mobile carrier to give their decreasing profit a boost.
Apple’s iPhone on T-Mobile, a Likely Possibility
Sanford C. Bernstein’s Craig Moffett stated in a note to investors yesterday that Apple and Deutsche Telekom are likely to strike a deal to bring iPhone in T-Mobile next year.
IPhone [sic] availability at T-Mobile USA would likely reduce contract losses at that company, and push Deutsche Telekom US to a net revenue growth position much sooner than the market expects.
Boosting Sales through iPhone
The mobile phone can help T-Mobile to retain its lucrative post-paid customers, after they lost 510,000 monthly subscribers during the first quarter of this year. On the other hand, AT&T and Verizon acquired 688,000 customers during the same period. In relation to this, T-Mobile blamed their lack of Apple offering last February for losing 706,000 contract customers during the last quarter of 2011.
T-Mobile was originally planning to bring iPhone to their network, as part of their merger with AT&T. Unfortunately; both carriers were not able to come up with any agreement last December. This prompted AT&T to give Deutsche Telekom $3 million in cash, in addition to $1 billion worth of spectrum that was granted to T-Mobile.
With the additional bandwidth, the telecom plans to upgrade its network to iPhone-compatible 4G HSPA+ by expanding their operations in 1900 MHz spectrum. This report is consistent with the recent claims that T-Mobile is planning to expand their plans and solve frequency issues, which CEO Philipp Humm pointed out as the “key reason” why they’re not yet offering Apple’s iPhone.
Meanwhile, inking an agreement with Deutsche Telekon to sell the iPhone through T-Mobile would be a flight from Apple’s normal operating procedures. That’s because the Cupertino-based company usually makes the first-party agreement with carriers.
The iPhone maker has traditionally made iPhone sales agreements with various carriers in specific countries. This agreement usually involved volume commitments. Sprint Nextel Corp., for instance, got a $15.5 billion worth of four-year deal with Apple that requires the telcos to sell about 30 million units throughout the contract.
As of the moment, both companies declined to comment, and no official statement was issued with regards to the recent news.
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