Thursday, January 20, 2011

T-Mobile Might Divest Tower Network, Take Other Steps to Grow Faster

T-Mobile says it will consider divesting its entire tower network and then lease back capacity, as a way of optimizing its operating cost structure.

T-Mobile USA has converted about half its tower sites in the United States to optical fiber backhaul, the company noted at the Deutsche Telekom annual meeting. Of T-Mobile USA's 49,000 cell sites, 23,000 are outfitted with fiber backhaul.

But steps more profound than that likely will be evaluated. The company says it will "evaluate shareholder-value  ƒ
enhancing strategic alternatives." That normally signals merger, sales or other similar actions. The company, in fact, says it must reduce its scale disadvantages long term. That means T-Mobile USA must get bigger.

The company also will be changing its marketing pitch. Where it has targeted the "value conscious family," in 2011 it will focus on "affordable data services." Where in the past it has focused on "consumers," in 2011 it will target both consumers and business users.

The company reported that 39 percent of current customers use smartphones.

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