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Frost & Sullivan comments on T-Mobile USA launched its 'Wi-Fi Un-leashed' campaign(M2 PressWIRE Via Acquire Media NewsEdge) Frost & Sullivan's Information and Communication Technologies expert Senior Analyst Sheridan Nye comments on T-Mobile USA WiFi calling, VoLTE and what this suggests for mobile operator strategy in Europe. What happened: T-Mobile USA has launched its 'Wi-Fi Un-leashed' campaign and added the iPhone 6 to its roster of smartphones that support embedded Wi-Fi calling and texts. The ongoing Wi-Fi strategy was described by CEO John Legere as "like adding millions of towers to our network in a single day." T-Mobile says 20 million customers have phones able to make WiFi calls, including iPhones running iOS 8 as well as Android and Windows Phone models. To encourage the rest to buy compatible phones it is offering a free upgrade to its Jump! plan. The operator also offers a free 801.11ac router to address local Wi-Fi not-spots. Comment: Wi-Fi calling complements T-Mobile's 'uncarrier' positioning with another punchy campaign to entice customers with enhanced coverage and incentives to upgrade their plans. The move is designed to seize first mover advantage in the US mobile market on several fronts: T-Mobile is taking advantage of the relatively straightforward option of WiFi calling, while its larger rivals are focused on VoLTE, which is more complex to implement. Providing access to WiFi is arguably more beneficial to T-Mobile as its coverage, especially indoors, is less extensive than that of AT&T and Verizon. Wi-Fi gives T-Mobile a big increase in the density and reach of its access network, as well as the ability to off-load more traffic to fixed-line backhaul and ease wireless congestion. The ability to manage the quality of experience, especially minimising dropped calls and managing Wi-Fi to cellular hand-off is crucial. Third and fourth-place mobile operators often lack technological depth and R&D investment, whereas T-Mobile can draw on the technological expertise of its parent Deutsche Telekom. Giving away the latest generation ultra-wideband router is also a sensible strategy. T-Mobile has also announced nationwide VoLTE roll out and began earlier this year with a live deployment in Seattle. The combination of Wi-Fi with VoLTE and data LTE will bring enhanced services such as video calls, group calling and proximity services integrated with social media, marketing and entertainment. However, T-Mobile will have less competitive edge as market leaders AT&T and Verizon can leverage their advantages in greater infrastructure reach. Quotes "T-Mobile's Wi-Fi push illustrates the importance for operators to have access to a diversity of network options in order to deliver ubiquitous and reliable coverage. Diversity should be a core strategy for all carriers as the most cost-effective means to meet ever-increasing expectations of customers." "Combinations of Wi-Fi, small cells, traditional macro-cells and circuit-switched fall-back enable operators to reduce the key metric of dropped calls - arguably of more immediate concern to consumers than rapid call set-up, or even enhanced voice quality." "WiFi calling helps address cellular coverage not-spots and especially indoors. Unlike T-Mobile, operators that rank third or fourth in their markets often can't match the infrastructure investments of market-leading rivals. Unsurprisingly, the Wi-Fi calling option is not so attractive to Verizon and AT&T, who continue to emphasise the quality of their LTE networks and the potential of VoLTE. T-Mobile is also rolling out HD voice and VoLTE but will likely struggle to distinguish itself from the market leaders on enhanced capabilities." "By linking the campaign to the latest iPhone, T-Mobile manages to promote Wi-Fi calling without drawing attention to its relative weakness in terms of coverage. However, price-sensitive T-Mobile customers may feel underwhelmed by the 'unleashed' campaign offer. Usage is counted against their voice minutes and messaging allowance, so savings are not on the table." In Europe EE will be first in Europe to offer embedded WiFi calling in the UK later this year and plans to launch VoLTE in 2015. The UK's leading mobile operator has a parent in common with T-Mobile in Deutsche Telekom, co-owner with France's Orange. It also had a first mover advantage in for several months when it launched the UK's first LTE service. EE's approach illustrates the importance of diversity as the operator is investing in multiple networks to ensure quality of experience through circuit switched fall back - as much as 275 million in total in 2G, 3G and 4G networks during 2014. For further information and to interview the analyst please contact Edyta Grabowska, Corporate Communications, [email protected]. Tel. +48 22 4816203+48 22 4816203 About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?CallSend SMSAdd to SkypeYou'll need Skype CreditFree via Skype . (c) 2014 M2 COMMUNICATIONS |