Telecom News in the US, this week (Feb 24)

SNR | Signal-to-Noise Radio

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Key Themes and Developments:

1. T-Mobile's 5G Dominance and Strategy:

• Rural 5G Leadership: According to a report by Ookla, "T-Mobile is currently rocking the largest percentage of 5G users spending the majority of their time on its 5G network in both urban and rural markets." This success is attributed to strategic planning, including the deployment of low-band 600MHz spectrum ("Extended Range 5G") and the acquisition of Sprint, which provided access to the 2.5GHz spectrum ("Ultra Capacity 5G").
• Expansion Goals: T-Mobile aims to reach a 20% share of households in small markets by the end of 2025 and provide coverage to 90% of America's rural population by 2026.
• Acquisition of USCellular: T-Mobile is expected to acquire approximately 30% of USCellular's spectrum holdings and 4.5 million customers.
• T-Priority for Emergency Services: T-Mobile has secured a deal to provide telecommunications services to emergency services in New York City using network slicing via its T-Priority service. This service prioritizes calls and data traffic for first responders, ensuring lower latency and faster 5G speeds, even in congested areas.
• FirstNet Comparison: T-Mobile claims T-Priority offers more capacity than AT&T's FirstNet, which is based on 4G technology.
• Customer Service Concerns: T-Mobile's push for self-service through the T-Life app may not be welcomed by all customers, particularly those who are not tech-savvy, raising concerns about customer service and potential job losses. "T-Mobile wants to reduce the reliance on employees and physical stores, suggesting it might be planning to lay off some staff and close down some locations."
• Employee Incentives: T-Mobile employees are incentivized to get customers to use T-Life, raising concerns about pressure on both employees and customers.

2. Verizon's MVNOs and Affordable Plans:

• Tablet Plans: Total Wireless and Straight Talk Wireless (both Verizon MVNOs) are launching affordable unlimited tablet plans, starting at $10/month when bundled with phone service. These plans include access to Verizon's 5G Ultra Wideband network and hotspot data.
• Device Bundles: The MVNOs are also offering new tablets like the Samsung Galaxy Tab A9+ 5G and TCL Tabs at discounted prices when bundled with a tablet plan.
• Rewarding Data Usage: Straight Talk offered customers in NYC and NJ gift cards for demonstrating their data usage.
• VZ's Focus: Verizon intially struggled with 5G deployment as it didn't have a lot of low-band spectrum. The carrier used a technology called Dynamic Spectrum Sharing (DSS), which allows it to run 5G on the same spectrum bands as LTE (AT&T also uses DSS in some of its low-band spectrum).

3. AT&T's Strategy:

• FirstNet Focus: AT&T is prioritizing the expansion of FirstNet, its public safety network, into rural areas. This network uses band 14 and aims to provide reliable communications for first responders.

Implications:

• Competition: The telecommunications market remains highly competitive, with T-Mobile, Verizon, and AT&T vying for market share through network expansion, service innovation, and strategic acquisitions.
• Rural Coverage: 5G expansion in rural areas is a key battleground, with T-Mobile currently holding a significant advantage.
• Customer Service Evolution: Carriers are increasingly focusing on digital self-service, which could impact customer experience and staffing levels.
• Affordability: MVNOs are playing an important role in providing affordable wireless option

Thank you for listening!
-Mario Mejia