How Will T-Mobile USA Fight the iPhone? Network Upgrades

T-Mobile USA blames the iPhone for pulling away a large number of subscribers last year, and in response the carrier is building out faster, so-called fourth-generation LTE networks in hopes of bringing customers back.

Philipp Humm, T-Mobile USA’s chief executive, and Neville Ray, chief technology officer of the company, outlined T-Mobile USA’s “challenger strategy,” which involves making major upgrades over the next two years. The company is investing $4 billion on upgrading its current network technologies and adding 4G LTE, a faster cellular technology that AT&T and Verizon are aggressively rolling out this year, too. T-Mobile USA’s 4G LTE network will become available in 2013, the company said. The upgrade plan shows that T-Mobile is in fighting spirits. Mr. Humm said during the call that the company was “convinced we will get T-Mobile back to subscriber growth.” But its strategy does not directly address the primary reason people are leaving T-Mobile. They want the iPhone, which is not compatible with 4G LTE networks and is a bestseller nonetheless.