Struggling T-Mobile UK Working On Turnaround Plan
T-Mobile is one step closer to unveiling a turnaround plan, after the company reported today that it lost 87,000 subscribers in the UK during the second quarter.
Richard Moat, who began heading the T-Mobile unit in June, said their goal is to reposition the mobile network, and improve its market share and financial performance, reports The Guardian. Moat: “We are working on the detail of our strategy, with the intention of launching it during the autumn.” (See full Q2 results here.)
But the question remains whether a turnaround plan is necessary if Deutsche Telekom (NYSE: DT) is looking to sell off the unit? Rumors point to both Vodafone (NYSE: VOD), which also lost subscribers during the second quarter, and O2, which is the market leader, as being potential acquirers.
In the second quarter, T-Mobile UK’s financial performance did show minor improvements with profits before financial charges of £134m and margins up 17.3 percent compared to the previous quarter
I have to say that I just don't understand how T-Mobile is so behind the other operators. I have used them all and without doubt T-Mobile was and is the best. Their 3G network is much better than o2, the quality of their customer support has always been first class, and their price plans are the best overall. The main area where they fell down was I feel in their image (bright pink?) and the late launch of handsets. But I did leave T-Mobile after 7 years on a contract. Why? The iPhone!!. It would be sad to see T-Mobile go and with the right management it could still turn around in the UK.