Company Analysis of T-mobile - Research Paper Example

of Learning: Company Analysis of T-mobile T-Mobile is a USA based company but a subsidiary of the Deutsche Telkom in Germany. T-Mobile has stood out as one of the leading data communications and wireless voice services in the United States. The company enjoys more than 33 million customers with its network being compatible to the network of its Headquarters in Europe. T-Mobile also offers wireless Internet access as well as other data services in retail business and airports using its HotSpot brand.

The company involves itself with the resell of PDAs, phones, and related accessories from vendors like Samsung and Nokia. This year, the company acquired MetroPCS which was one of its rival companies (Coll 78). Anyone expects T-Mobile to be doing well in the market considering its investments and plans but this is not the case. In the recent past, the company has been experiencing a number of issues to the extent that spinning off looks a possibility. This situation was not expected considering how good the company was fairing in the market like the recent upgrade of its 3G wireless network, launching of new smartphines, hot marketing and its plans and strategies being of low-cost(Coll 102).

Most analysts associate this situation with its parent company in Germany, Deutsche Telkom, which happens to be afraid of taking risks and is also conservative thus mirroring the operation of the company. Considering also the government owns 30% of the company, it controls the operation of the company restricting its operation (Coll 50). A good example is the latest case where the Deutsche Telkom considered a merger with its unit in US, explore an IPO or spin off, but the German carrier turned down the report (Coll 34).

Despite the large number of customers T-Mobile enjoys in U.S, it reported a loss of approximately 77, 000 customers as its rivals the AT&T and Version gained millions of wireless customers (Coll 82). This implies that the company is not growing the way it is expected to. The millions of dollars that were invested in upgrading 3G network as well as its smartphones subsidies cannot be justified. Its network has also been regarded as being inferior in comparison to other wireless companies such as Sprint, Verizon and AT& T.

Work CitedColl, Steve. Private Empire: ExxonMobil and American Power. New York: Penguin Press, 2012. Print