Porter’s Five Forces Analysis of T-Mobile US
Key Facts
| Name | T-Mobile US |
| Industry | Telecommunications Services, Cable Supplier |
| Founded | 1994 |
| Headquarters | Bellevue, Washington, USA |
| CEOs | Mike Sievert |
| Revenues | US$80.12 billion,2021 |
| Profit | US$3.02 billion, 2021 |
| Competitors | Verizon Communication, AT&T, Comcast Corp. |
Company Overview
T Mobile US, Inc. offers cellular communication services under the T-Mobile and MetroPCS brands. It provides cellular phone, message, and data services to both postpaid and prepaid customers, as well as wholesale wireless services. Deutsch. The company has operations in portions of Europe, but its greatest market is the U.S., as solely in USA it has mobile subscribers exceeding 109 million. Customers of The Un-carrier benefit from its unrivalled value and quality offering, unwavering passion with providing them with the best customer service experience, and undeniable desire for disruption that fosters competition and innovation in wireless and beyond. It commenced its operation in 1994 and it is US based compay.
Porter’s Five Forces Analysis of T-Mobile
T-Mobile Rivalry among Existing Competitor
- T Mobile US: American telecommunications giant T-Mobile US, Inc. has its headquarters in Bellevue, Washington, USA. Following Deutsche Telekom’s acquisition of VoiceStream Wireless PCS in 2001, the business was established. The business, which goes by the name T-Mobile USA, was the subject of an AT&T buyout offer in 2011, but the transaction failed due to opposition from American regulators. After merging with MetroPCS Communications in 2013, T-Mobile USA became T-Mobile US, Inc. T-Mobile US and Sprint Corporation concluded their merger in April 2020, with T-Mobile becoming Sprint’s sole holder. The company gives cellular phone, messaging, and internet services with the name of T-Mobile, MetroPCS, and GoSmart Mobile brands. The growth of Its revenue from US$4.85 in 2011 to US$80.12 billion in 2021, shows that major telecom sector players in US is only three, AT&T ,Verizon and T Mobile US. Its net profit has increased from US$0.30 billion in 2011 to US$3 billion in 2021, that is satisfactory.
- Verizon Communications: A holding corporation, Verizon Communications, Inc. offers communications, information, and entertainment goods and services. The Verizon operates through two business segments as follows; Consumer Group and Business Group. The Consumer division offers wireline and cellular communications services and goods that are geared towards consumers. The Business segment offers network access, video and data services, corporate networking solutions, security and managed network services. The business started its operation in 1983, and it has it has its head office in New York, USA.
Along with AT&T Inc. and T-Mobile US, it is one of the top three telecom providers in the country. From US$110.88 billion in 2011 to US$133.61 billion in 2021, its revenue have increased. Its net profit has grown significantly from US$12.88 billion in 2011 to US$22.62 billion in 2021.
- AT&T: operates in three segments: Latin America (wireless service in Mexico) and Communications (wireless services and equipment), which together account for 74% of its sales. WarnerMedia (which develops and distributes movies, television shows, and games) accounts for 23% of its revenue. Prior to WarnerMedia’s takeover, it only operated in the communications sector. From US$63.06 billion in 2006, its revenue increased to US$168.86 billion in 2021. It will have a net income of US$21.48 billion in 2021.
- Comcast Corporation: presently has five business divisions; if we examine these divisions’ revenue, cable communication (broadband services) accounts for 53%, media (which produces and distributes entertainment, news, and sports content, such as NBC Universal’s) accounts for 19%, studio (which produces and distributes motion pictures and television) accounts for 8%, theme parks (which runs amusement parks in the United States, Japan, and China) accounts for 4%, and sky (which provides direct-to-home services via satellites Comcast Corporation has consistently increased its income over the past few decades, going from US$24.96 billion in 2006 to US$116.39 billion in 2021.
T-Mobile Threat of New Entrants
- Acquistions: When T Mobile US acquired Sprint Corp in April 2020 for US$26.50, this transaction considerably restricted competition and opportunities for new entrants to enter and compete in the market as its size grown further. In accordance with the merger agreement, T-Mobile added 33.84 million postpaid Sprint customers to its existing 47 million postpaid wireless customers. By acquiring Boost Mobile from Sprint, bringing the total to four, DISH Network Corporation was able to prove to the US Department of Justice (DOJ) that the market would remain competitive as this acquistion was rejected by DOJ for AT&t
- Capital Investment: It will deter new entrants because operating as a top player in the industry requires a significant capital investment. According to Forbes Global 2000 ranking list, the capital investments of the top players are as follows: T mobile US total assets are US$206.56 billion, Verizon total assets are US$366.60 billion, AT&T US$551.52 billion, and Comcast total assets are US$275.90 billion.
T-Mobile Bargaining Power of Suppliers
- Major players in the market: With a market share of around 44.8% of wireless subscribers in the third quarter of 2022, AT&T is the largest provider of mobile services in the USA, drastically reducing the bargaining strength of its suppliers. The other two significant wireless carriers in the US are Verizon and T-Mobile US.
T-Mobile Bargaining Power of Buyers
- Customer base: Large client base greatly lowers the power of the customer to negotiate, Over 110.02 million people used T-Mobile services in the second quarter of 2022. Due to the April 2020 merger of T-Mobile and Sprint, the firm had a significant rise in subscribers from the first to the second quarter of 2020.
- Customer satisfaction: According to the ACSI customer satisfaction index, T-Mobile US presently has the highest customer satisfaction rate among wireless service providers in the United States. T Mobile US churn rate was also recorded at 0.8% in the second quarter of 2022, which is lower than it was in the corresponding quarter of 2021.
T-Mobile Threat of Substitute Products or Services
- Satellite telecommunications: By 2024, it is anticipated that the U.S. satellite telecommunications industry will generate about US$6.75 billion in revenue. Historically, the AT&T sponsored Testar-I satellite that NASA launched in 1962 was the first to enable transcontinental telephony.
- Size of mobile VoIP market worldwide: The European mobile VoIP industry is expected to grow to US$14 billion in 2017. Users using voice-over-IP technologies can make and receive calls just like they would on a public switched telephone network. In order to lower their phone expenses, many companies are switching to VoIP, and platforms that combine phones, fax machines, voice and email, web conferencing, and other communications services are emerging to take advantage of this market.
References
- T-Mobile US,profile at Forbes
- Verizon ,profile at Forbes
- Revenue of T-Mobile US from 2009 to 2021*(in billion U.S. dollars)at Statista
- T-Mobile US annual report from 2007 to 2021 at investor relaitons officalweb
- \Verizon Revenue 2010-2022 | VZ at MacroTrends
- Verizon Communications’ operating revenue from 2007 to 2021(in billion U.S. dollars) at Statista
- Verizon’s net income* worldwide from 2007 to 2021(in billion U.S. dollars) at Statista
- Verizon,annual reports from 2006 to 2021 , Verion offical Website, InvestorsRelaitons
- Verizon Communications’ global revenue by business segment from 2012 to 2021 (in billion U.S. dollars)* at Statista
- Wireless subscriptions market share by carrier in the U.S. from 1st quarter 2011 to 3rd quarter 2022 at Statista
- Global 2000 companies ranking , Fobes
- T-Mobile US – Statistics & Facts at Statista
- Total number of customers/subscribers of T-Mobile US from 1st quarter 2018 to 2nd quarter 2022(in millions) at Statista
- Total number of customers/subscribers of T-Mobile US from 1st quarter 2018 to 2nd quarter 2022(in millions) at Statista
- Industry revenue of “satellite telecommunications“ in the U.S. from 2012 to 2024(in million U.S. Dollars) at Statista
- Commercial satellites – statistics and facts at Statista
- Size of the mobile VoIP market worldwide by region from 2014 to 2024(in billion U.S. dollars) at Statista
- Annual report 2006 to 2021 available at comcast
- Annual report 2013 to 2021 available at AT&T
- T Mobile US , profile, Wall Street journal, WSJ