T-Mobile has lost its clear lead in entry-level value, according to a recent Wall Street assessment that signals the end of the carrier’s long-standing Un-carrier identity. Once regarded as distinct from Verizon and AT&T, the operator is now viewed by analysts as offering no meaningful advantage over its rivals.
From Industry Disruptor to the Pack
Between 2012 and 2020, T-Mobile stood out as the most innovative operator in the American wireless market. Before that period, it had been considered the weakest of the country’s four major networks, which included Verizon, AT&T and Sprint, and was the last to roll out both 3G and 4G services to customers.
The turnaround began in September 2012, when majority stockholder Deutsche Telekom appointed John Legere as president and chief executive of the then-struggling provider. Legere moved T-Mobile from last place among the major four networks to second, prioritising customers with perks such as free Netflix and launching the T-Mobile Tuesday rewards programme.
Under his leadership, T-Mobile adopted a new identity as the Un-carrier and became the first operator to eliminate two-year subsidised contracts. Legere’s high-profile approach set him apart from other executives of the era, and in 2019 Glassdoor named him the top chief executive in the American wireless industry for the fifth consecutive year, with a 99% approval rating from employees.
The End of an Era
Legere handed the chief executive role to his former deputy, Mike Sievert, when he departed on 1 April 2020 as the roughly £21 billion merger with Sprint completed. That transition marked a shift in the company’s direction.
Earlier this month, T-Mobile announced 36-month device financing, an increase from 24 months, bringing it in line with Verizon and AT&T. The change was seen internally as a further departure from the operator’s disruptive roots.
The company was subsequently downgraded by analyst Peter Supino of Wolfe Research, who reduced his rating on its shares from “outperform” to “peer perform.” While the comment refers to T-Mobile’s stock relative to competitors such as AT&T and Verizon, it also reflects a broader view that the Un-carrier era is drawing to a close.
Supino told clients that AT&T and Verizon now offer more competitive entry-level postpaid price points, an area the operator once dominated.
Source
Image: phonearena.com
