Power Point/ Business Writer

Case Management Analysis 1

Strategic Management Case

T-Mobile US

Merouane Siahmedouali

04/26/2017

Mba-599

Dr. Joy Rose

Table of Content

Executive Summary ……………………………………………………………………… 1

Introduction………………………………………………………………………………….2 & 3

Description of the firm and its products……………………………………………………4

Company history …………………………………………………………………………...4 & 5

Vision and mission statement……………………………………………………………….6 & 7

Assessment of mission and vision………………………………………………………… 8

External assessment……………………………………………………………………….. 9 & 10

EFE and CPM with strategic implications……………………………………………….. 11 & 12

Analysis of competitive position, opportunities, and threats…………………………… 13 & 14

Internal assessment……………………………………………………………………… 15 & 16

IFE with strategic implications…………………………………………………………16 & 17

Financial ratio analysis with key conclusions and implications for strategic choice …. 17 & 18

Overall analysis of internal capabilities and implications for your strategic decisions… 19 $ 20

Current Strategy………………………………………………………………………… 20 & 21

SWOT matrix with strategic implications for the company ……………………………. 21 & 22

SO ………………………………………………………………………………………. 23 & 24

WO ……………………………………………………………………………………….. 25

ST………………………………………………………………………………………… 26

WT………………………………………………………………………………………...27

BCG matrix with strategic implications for the company ………………………………. 28

Space or other matrices with strategic implications for the company……………………. 29

Possible strategic alternatives ……………………………………………………………. 30 & 31

Evaluation of current organizational struct ………………………………………………. 31 & 32

Strategic analysis, choices, impact, and measurement ………………………………… 33 & 34

Product-positioning map ………………………………………………………………. 36 & 38

Evaluation of strategies and objectives …………………………………………………. 39 & 40

to achieve most Favorable market position

Description of how you would implement your strategies ……………………………. 41 & 42

Milestones………………………………………………………………………………. 43

Specific results you want to achieve including market, financial, …………………… 45 & 46

and product or service goals

Financial projection ………………………………………………………………...... 47 & 48

References …………………………………………………………………………..... 48 & 49

Appendix……………………………………………………………………………… 50 & 53

Executive Summary

T-Mobile USA is the third wireless operator in the nation and headquartered in Bellevue, Washington. T-Mobile USA is mainly comprised of T-Mobile (Postpaid Brand) and Metro PCS (Prepaid Brand).

T-Mobile US has been a public company for the last four years. T-Mobile provides wireless communications services to over 71 million customers. Since 2012, T-Mobile has, arguably, developed the best network and most advanced wireless technologies. T-Mobile US also offers the latest wireless handsets. T-Mobile has disrupted the wireless industry with its aggressive strategies. Per, “T-Mobile US, Inc. Form 10-K,” 9, “Un-carrier Value Proposition, which aims to reposition T-Mobile as a dependable provider of high-speed LTE service on a full range of desirable devices for an “unrivaled customer experience." Since T-Mobile US unleashed the "Un-carrier Strategy", the organization has more than doubled its customer base. Recently, T-Mobile has purchased more than 45% of the available low-band spectrum sold in this year’s government auction and spent eight billion dollars for this purchase. This purchase has given, T-Mobile, a noticeable advantage over its competitors. T-Mobile US has experienced a massive customer growth due to its Un-carrier strategy and network improvements. T-Mobile has been successful due to factors like development of new technologies, continuous implementation of innovative ideas, fast and strong network, quality service, and superior customer service.

Consumer Intelligence Research Partners (CIRP) analysis of consumer behavior for top US mobile phone carriers concluded that AT&T and Verizon appeal to consumers based on network quality, even though consumers think they cost more. Adversely, customers switch from AT&T and Verizon due to high cost. Consumers think that T-Mobile and Sprint provide a lower-cost service at the expense of network quality and due to network coverage. T-Mobile's strategies have been veered toward low prices and a focus on data services. T-Mobile's customer growth and network improvement should continue upward if the organization wants to catch up to AT&T and Verizon. We recommend that T-Mobile US keeps its focus on network improvement. We also recommend that T-Mobile US heavily targets the small business customers, especially after the new spectrum purchase. Attracting small business customers will help the organization maintain its record-breaking customer growth. A research conducted by Forrester Research concluded that nearly 30% of the consumers switch to different carriers because they are not satisfied with the customer service from their current providers. So lastly, we recommend that T-Mobile US eases the costs related to the promotions which will help keep its prices low for customers and differentiate itself by providing superior and excellent customer service which in turn should decrease churn.

Introduction

T-Mobile US, Inc. (NASDAQ: TMUS) is Based in Bellevue, Washington. T-Mobile US is the third largest provider of wireless voice, messaging and data communications services in the United States. T-Mobile US was named after T-Mobile Germany. T-Mobile US offers its services through its subsidiaries such as Go Smart Mobile. T-Mobile US operates two flagship brands, T-Mobile and Metro PCS. T-Mobile acquired Metro PCS in a reverse takeover in 2013. T-Mobile offers post-paid plans and Metro PCS offers pre-paid plans. Deutsche Telekom is the majority shareholder of T-Mobile US, owning 65% of the company. Deutsche Telekom is a German based company. T-Mobile US sells mobile phones, tablets, and wireless internet. T-Mobile US offers unlimited wireless voice, messaging, and data communications. T-Mobile also offers WIFI calling when overseas or if network is out of reach. This technology allows customers to turn a WIFI connection to their own towers. The company offers its services through its advanced 4G LTE network to 71.5 million customers as of 2016. T-Mobile can reach 308 million in their homes and workplace. The company also offers global plans. T-Mobile US customers can use their services in Canada and Mexico at no extra charge. Customers can also use their phones in Europe using Deutsche Telekom’s network. Customers can also use their cellular devices in Puerto Rico and the U.S Virgin Islands. T-Mobile has about 55 million post-paid customers which make up about 77% of its customers. Metro PCS has about 16 million pre-paid customers. T-Mobile also sells service wholesale, including to Google's Project Fi- program, adding another 373,000 customers in the quarter. Between T-Mobile and Metro PCS, T-Mobile US operates about 8000 stores. Most of the stores are authorized vendors and the rest are company owned. Per Fortune.com, Approximately 230 million people live within 10 miles of T-Mobile's (TMUS, +1.66%) roughly 3,600 current stores. The company reaches 98% of Americans. T-Mobile US has about 50000 employees. The CEO of the company is John Ledger. He is known to be an outspoken leader and does not fit the mold of a typical CEO. Per CNNMoney.com, Consumer Reports named T-Mobile the number one American wireless carrier and in 2017, T-Mobile was ranked number one in Customer Service Satisfaction by Nielsen.

T-Mobile US started as VoiceStream Wireless PCS which was a subsidiary of Western Wireless Corporation. VoiceStream Wireless was purchased by Deutsche Telekom in 2001 for $35 billion and renamed T-Mobile USA, Inc. Deutsche Telekom completed the acquisition of VoiceStream Wireless Inc. for $35 billion and Southern US regional GSM network operator Powertel, Inc for $24 billion. In 2013, T-Mobile US, Inc. was formed through the business combination between T-Mobile USA and Metro PCS Communications, Inc. The business combination was accounted for as a reverse acquisition with T-Mobile USA as the accounting acquirer. Accordingly,

T-Mobile USA’s historical financial statements became the historical financial statements of the combined company. On March 20, 2011, DT accepted a $39 billion stock and cash purchase offer from AT&T for the company. The acquisition was subject to regulatory approvals,

a reverse breakup fee in certain circumstances, and customary regulatory and closing conditions. On August 31, 2011, the United States Department of Justice sued to block AT&T's merger with T-Mobile because it would "substantially lessen competition" in the wireless market. Further reports indicated that the FCC would likely oppose the merger. In December 2013, multiple reports indicated that Sprint Inc, and its parent company Softbank were working towards a deal to acquire a majority stake in T-Mobile for at least US$20 billion. On August 4, 2014, Bloomberg reported that Sprint had abandoned its bid to acquire T-Mobile, considering the unlikelihood that such a deal would be approved by the U.S. government and its regulators. On February 17, 2017, it was reported by Reuters that Softbank was considering selling its majority share in Sprint to Deutsche Telekom (an effective reversal of the original deal), citing struggling growth in the U.S. market, and a higher likelihood that the deal would be approved by the new administration. T-Mobile US has many competitors. Its main competitors are Verizon wireless, AT&T, and Sprint. Per Forbes.com, if the company continues its current trajectory in 2016, it might be time for big competitors like Verizon and AT&T to start worrying. T-Mobile US is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 71.1 million customers who are unwilling to compromise on quality and value. T-Mobile US introduced a set of low-price leasing plans and unlimited plans. T-Mobile launched its highly lauded “Binge On” feature, which enables users to stream video onto their mobile devices without it counting against their data plans. According to T-Mobile 10-K Form, The wireless telecommunications industry is highly competitive. We are the third largest provider of postpaid service plans and the largest provider of prepaid service plans in the U.S. as measured by customers. Our competitors include other national carriers, such as AT&T Inc. (“AT&T”), Verizon Communications, Inc. (“Verizon”) and Sprint Corporation. AT&T and Verizon are significantly larger than us and may enjoy greater resources and scale advantages as compared to us. In addition, our competitors include numerous smaller regional carriers, existing MVNOs, such as TracFone Wireless, Inc., and future MVNOs, such as Comcast Corporation and Charter Communications, Inc., many of which offer or plan to offer no-contract, prepaid service plans. Competitors also include providers who offer similar communication services, such as voice and messaging, using alternative technologies or services. Competitive factors within the wireless telecommunications industry include pricing, market saturation, service and product offerings, customer experience, network investment and quality, development and deployment of technologies, availability of additional spectrum licenses and regulatory changes. Some competitors have shown a willingness to use aggressive pricing as a source of differentiation. Other competitors have sought to add ancillary services, like mobile video, to enhance their offerings.

Analysis

External Factors Analysis

T-Mobile Us offers a range of services to its customers. Wi-Fi calling and texting is a feature only T-Mobile US offers to its 70 million plus customers for no extra charge. Customers can turn any Wi-Fi connection to cellular tower. Spectrum-wave penetration is not always reliable, especially when trying to make calls inside buildings made of concrete. Houses or building with metal roofs makes spectrum-wave penetration very hard. T-Mobile US is the only wireless company that offers such a service. Customers can also use Wi-Fi when traveling to another country. This feature gives T-Mobile another tool to stay above the competition. T-Mobile US offers its customers international calling, texting and data when they travel to Europe. Customers can connect to Deutsche Telekom network when in Europe. T-Mobile US customers can also use their phones when traveling to Canada and Mexico at no extra charge. T-Mobile US is aggressive in its offers when it comes to data use. T-Mobile US was the first company, amongst wireless companies, to offer its customers unlimited data.

T-Mobile US is leading the industry in unlimited data plans. Even though Sprint is cheaper than T-Mobile, it does not have as a reliable of a service as T-Mobile US. Also, T-Mobile US $G LTE network covers more Americans than sprint. T-Mobile also leads all companies in uploads and downloads speed.

The threats that T-Mobile faces apply to all wireless communication companies. Threats, such as government regulations and competition, do not put T-Mobile US in a disadvantage. T-Mobile US is also going to spend 10 billion dollars to purchase more spectrums at government auctions. No data is available for spectrums purchase as the auction is still going until April 15th, 2017.

Competitive Profile Matrix

T-Mobile is the third largest wireless carrier in the United States of America. As of 2016, T-Mobile US was leading the industry in growth. T-Mobile US added net-add of new subscribers for eight quarters in a row. “In 2015 we AGAIN saw 8.3 million customers come to T-Mobile, and 2.1 million in Q4 - marking 11 consecutive quarters of over 1 million net adds and 3 quarters in a row with more than 2 million total nets for the Un-carrier,” said John Legere, President and CEO of T-Mobile. “That means we added 23,000 customers per day, EVERY DAY for the last two years, so trust me when I say we have NO plans to stop disrupting the status quo in wireless!” In 2016, T-Mobile added over 8 million customers. The other companies cannot keep up with the growth T-Mobile is having. The closest company, to add as many as T-Mobile, is AT&T. However, AT&T is mostly adding tablets than regular phone users. The company announced it is expecting to deliver strong growth in adjusted EBITDA of between $9.1 and $9.7 billion. Cash capital expenditures for 2016 are expected to come in at around $4.8 billion, driven by the addition of another 2.4 to 3.4 million postpaid customers. T-Mobile is also becoming a more recognizable company. Per Twitter, the company was mentioned more than any other competitor. The incredible addition of customers is helping T-Mobile US to increase its market share. If T-Mobile continues to add customers at the rate of eight million per year, it will have the biggest market share. ARPU is low compared to other companies. However, T-Mobile strategy is to make it wireless usage affordable for all. It is the reason why T-Mobile US is adding more customers than any if its competitors.

T-Mobile US Churn Rate ranks third amongst major companies. However, branded postpaid phone churn was 1.46% in the fourth quarter of 2015, down 27 basis points year-over-year, marking the best churn improvement of the year. Sequentially, churn was stable instead of the typical seasonal increase. Other companies have seen their churn rate increase in the same period. Coverage was an issue for T-Mobile US. However, on August 2016, T-Mobile US announced that it will match Verizon’s leading industry 4G LTE coverage by the end of 2017 or sooner. As of 2016, T-Mobile covered 311 million Americans. Per T-Mobile Chief Technology Officer Neville Ray, T-Mobile is planning to materially close the gap by the end of 2017.

Internal Factor Evaluation

T-Mobile US has revolutionized how wireless carriers do business. As T-Mobile US put it “We are the Un-carrier, Un-satisfied with the status quo and Un-afraid to innovate. The Un-carrier strategy is an approach that seeks to listen to the customer, address their pain points, bring innovation to the industry and improve the wireless experience for all. Per Forbes.com, In November, T-Mobile launched its highly lauded “Binge On” feature, which enables users to stream video onto their mobile devices without it counting against their data plans. Netflix users of the world rejoiced, and the move undeniably helped to drive T-Mobile’s massive additions last quarter. Also, per Forbes.com, People are dropping their old carriers and hopping on the bandwagon for several reasons. T-Mobile has lured quite a few customers away from Verizon by introducing a set of low-price leasing plans. Yet the network’s real strength is its innovative data capabilities. T-Mobile added more customers than any of its competitors for the last two years. T-Mobile US added more than 8 million customers in each of the last two quarters. These additions represent far better growth than any other company operating in the wireless sector. Per Nasdaq.com, the company announced it is expecting to deliver strong growth in adjusted EBITDA of between $9.1 and $9.7 billion. Cash capital expenditures for 2016 are expected to come in at around $4.8 billion, driven by the addition of another 2.4 to 3.4 million postpaid customers. T-Mobile US continue to expand its capacity through the re-farming of existing spectrum and implementation of new technologies including Voice over LTE ("VoLTE"), Carrier Aggregation, 4x4 MIMO, and 256 Quadrature Amplitude Modulation ("QAM"). As of February 2017, T-Mobile covers more than 98% of Americans matching the leader in coverage, Verizon wireless. Per T-Mobile US annual report, we generate most our service revenues by providing wireless communication services to branded postpaid and branded prepaid customers. Our ability to acquire and retain branded postpaid and prepaid customers is important to our business in the generation of service revenues, equipment revenues and other revenues. In 2016, our service revenues generated by providing wireless communication services by customer category were:

• 65% branded postpaid customers

• 31% branded prepaid customers

• 4% wholesale customers, roaming and other services

T-Mobile US was ranked the top wireless company to work for by its employees according to Glassdoor.com. Businessinsider.com ranked T-Mobile US as the number 17 company to work for in the U.S. T-Mobile US reviews its employees’ salaries and hourly rates and match with market pay of the best companies in the U.S.

T-Mobile US acquired Metro PCS through a reverse of acquisition. It was a great business move. However, the lack of standard procedures could become a problem in the future. Being able to pay debt is a must for organizations to be successful and profitable. However according to T-Mobile US financial reporting, America’s third-largest wireless provider reported a net income of $297 million in the final quarter of 2015, up from just $101 million a year earlier. Operating activities brought in $2.2 billion across the quarter, service revenues were up 11.7% year-over-year and adjusted EBITDA shot up by 30.2% to $2.3 billion. Total revenue rose by over a point to $8.25 billion, just beating past the average analyst estimate of $8.2 billion.

Financial Ratio Analysis

Receivables Turnover

T-Mobile US receivables turnover has been increasing from year over year. In 2014, the receivables turnover was 10.78. It increased the next two years 17.55(2015) and 20.22 in 2016. An increased high turnover means that cash is collected more quickly for use in the company.

Asset Turnover

T-Mobile US asset turnover has also increased year over year. In 2014, the company generated $0.54 for of revenue for every $1 of assets that the company owns. In 2015 and 2016, the company increased its asset turnover to $0.58.

Quick Ratio

T-Mobile US quick ratio was almost steady, 1.59 in 2014 and 1.58 in 2015 and 2016. This indicates that the company can only cover more than its current liabilities by using all cash-on-hand, liquidating short-term marketable securities and monetizing accounts receivable.

Gross Profit

T-Mobile US has been aggressive going after its competitors and so far, it is winning. The gross profit margin increased in the last three years. In 2014, the gross profit margin was 47.88 and in 2015 it increased to 53.32. The same trend continued in 2016 as it increased to 55.56. The 55.56% gross margin for the company shows that 55.56% of revenues generated by the firm are used to pay for the cost of goods sold. The gross margin profit increase is an indication of increased competition. It explains the company’s strategy to become the number one wireless company in the country.

Operating profit margin

The operating profit margin for T-Mobile US has also increased in the last three years. In 2014, the operating margin was 4.79% and in 2015 it was 6.44%. The profit margin increased in 2016 to 10.21%. For every dollar of revenues generated, $.10 is left after deducting cost of goods sold and operational expenses. Increasing operating margin is a good sign. T-Mobile US strategy to be more competitive and offer the best handsets and products is working.

Net profit margin

The profit margin for T-Mobile has increased year over year since 2014. In 2016, the profit margin was at 3.77%. This suggests that for every dollar of revenue generated by T-Mobile US, $.0377is created for shareholders. Increasing the net profit margin means more pay out for shareholders.

Return on Assets and Return on Equity

The company’s return on assets has also been increasing year over year. In 2015, it was 1.14% and in 2016 it increased to 2.19%. So, in 2016, for every dollar of company assets the company is generating $0.0219 in net income. This is a good sign for T-Mobile US. The same trend continues for ROE. ROE has increased from 4.21%, in 2015, to 8.08% in 2016. So, for every dollar in equity, the company is generating $0.08 in net income.

T-Mobile US Current Strategy

T-Mobile US current strategy is veered toward easing customers pain points and making handsets and wireless services affordable to all. T-Mobile US main strategy is the UN-Carrier strategy. The UN-Carrier strategy is meant to make cellular services affordable for customers, especially families, by eliminating contracts, fees, and allowing customers to upgrade their handsets whenever they choose to. Since 2013, T-Mobile US has adopted several strategies. It was the first major wireless company to introduce “no contracts” services to its current customers and to those who would like to join T-Mobile US innovative approach to the wireless industry. The company even offered to pay off contracts for those who wanted to switch from Verizon, AT&T, and Sprint. Next, T-Mobile US introduced BINGE ON as part of its UN-CARRIER strategy. BINGE ON allowed customers to stream videos and music apps without using their data allowance. It gave a way, for customers, to stream unlimited data without extra charges. T-Mobile US, then, introduced unlimited data plans as part of its UN-Carrier strategy. On January 2017, T-Mobile US announced that it will eliminate taxes and fees to its T-Mobile One unlimited data plans. The UN-Carrier strategy is a pricing strategy. T-Mobile US wants to be the cheapest and most affordable organization in the wireless industry. T-Mobile US is eliminating fees and taxes which in turn will help the organization reduce its customer service cost. By simplifying customer's’ monthly billing statements, T-Mobile is hoping to reduce calls to its call centers. Per T-Mobile US, one third of customers’ calls are related to billing. The move will also improve customer service quality and decrease the churn rate. At the end, the UN-Carrier strategy is going to help the organization cut operational costs and the saving can be used to keep improving its products and services. The price reduction strategy for subscriptions has helped T-Mobile US add over thirty million customers since 2013. T-Mobile US has been offering its customers an option to make calls over WIFI networks. If a customer is in an area where the network signal is weak or not effectively penetrating buildings, T-Mobile US customers can connect to any WIFI network and use their handsets as if they were using any wireless tower. Buildings constructed with concrete or have heavy metal roofs are making spectrum penetration ineffective. T-Mobile US is using VoLTE technology. VoLTE stands for voice over LTE which allows T-Mobile US to repurpose spectrum from slower 2G and 3G speeds to LTE. According to Neville Ray, the company’s chief technology officer, T-Mobile is the first U.S. carrier to deploy cell service relying on LTE-U — technology that uses broadcast frequencies typically meant for Wi-Fi signals. Another of T-Mobile’s recent lab inventions is the Digits feature, which allows a single phone number to ring across many devices. It also lets one phone hold multiple phone numbers. The latest technology T-Mobile is using is call Enhanced Voice Services (EVS). EVS is next generation voice technology. EVS technology works better than Volte technology. It is more reliable and covers more distance. EVS uses broader audio frequency range which translates to a more realistic sounding voice audio. The latest technology T-Mobile US laboratories are working on is the 5th generation technology which will improve the range of services, quality of calls and data speed. On January 5, 2017, T-Mobile announced that it would go "All In" on Unlimited by making T-Mobile ONE the only postpaid consumer plan available at the Un-carrier. T-Mobile One eliminated taxes and fees.

SO Strategies

T-Mobile US is the third largest wireless provider in the United states of America. As of the Q4 of 2016, T-Mobile has over seventy million customers. Since 2012, T-Mobile US has seen record customer growth. Per 451 Research, T-Mobile has added an average of eight million customers since 2014. Since 2012, T-Mobile has doubled the number of its customers growing it from over 33 million to over 70 million. This increase is by far the best in the industry, outpacing competitors like Verizon and AT&T. Since the end of 2012 to the 2016, T-Mobile increased its market share from 10% to over 17%. Verizon’s market share was -1% and AT&T was 1%. The Un-carrier strategy was unleashed in waves. The strategy, has helped T-Mobile, increase its customer base and be a major player in the wireless industry. It has disrupted the wireless industry and redefined the way operators do business. The many of promotions, stemming from the Un-Carrier strategy, has helped T-Mobile increase its market share. Since the launch of the Un-Carrier Strategy, T-Mobile has been increasing its market share. Customers are switching from companies like Verizon, AT&T, and Sprint to T-Mobile. Per Consumer Intelligence Research Partner(CIRP), “The third-largest mobile carrier posted by far the highest growth rate for new phone activations among customers transferring from a competitor, at 42% of its base that was at risk of leaving in the quarter”. Per Shimp, “sales promotion is any incentive used by organizations to induce consumers to buy a brand and to encourage the sales force to aggressively sell it” Shimp believes that when such incentives are given, promotion has the power to influence the behavior of the buyers and to encourage brand switching. The Un-Carrier Strategy has helped, T-Mobile US, to propel its market share to new heights and to retain already existing customers. Expanding coverage and acquiring high quality spectrum are two opportunities available, to T-Mobile US, to keep increasing its customer growth. Per the 2016 T-Mobile Investor Factbook, “T-Mobile continues to expand its coverage breadth and currently provides 4G LTE coverage to 314 million people, up from zero 4G LTE coverage four years ago. The Company is targeting to provide 320 million people with 4G LTE coverage by year-end 2017”. At the end of 2016, T-Mobile US used 70% of its spectrum for 4G LTE coverage compared to 52% in 2015. The organization is also aggressively re-farming its spectrum committed to 2G and 3G. Expanding 4G LTE coverage is crucial to its growth. Closing the gap between its top two competitors, Verizon and AT&T, will benefit growth and quality of services. 4G LTE enables customers to download and upload at high speeds and great quality. In 2015 alone T-Mobile doubled its LTE geographic coverage and now covers 97% of Verizon customers. In Q4 2016, T-Mobile’s average 4G LTE download speed was 24.4 Mbps compared to Verizon at 24.3 Mbps and AT&T at 23.9 Mbps. In Q4 2016, T-Mobile's average 4G LTE upload speed was 12.1 Mbps compared to Verizon at 8.5 Mbps and AT&T at 7.6 Mbps. T-Mobile US expanded its coverage using high quality spectrum. Coverage expansion did not affect its service quality either. Sometimes quantity means less quality. However, the great news for T-Mobile is that the quality did not take a back seat to quantity but rather the opposite.

WO Strategies

Historically T-Mobile’s Average Revenue Per User (ARPU) has been low compared to the competition. Per Statista, T-Mobile’s ARPU at the end of Q4 2016 was at $43.14, Verizon was at $45.54, and AT&T was at $51.12. One might conclude that because of the low ARPU, T-Mobile’s revenue is would also be the lowest compared to the competition. The low ARPU is a result of all the Un-carrier strategy moves made by T-Mobile. Per T-Mobile’s Investor Fact Book, the low ARPU is due to one of the Un-Carrier Strategies “Data Stash” which allowed customers to carry over their unused data to the next billing cycle. In addition, dilution from promotional activities had an impact on ARPU. T-Mobile’s low ARPU does not reflect how well the organization’s is doing in service revenue year-over-year. T-Mobile’s revenue was up year-over-year to 12.2% between 2015 and 2016. This increase lead the wireless industry year-over-year. Per T-Mobile, the increase of service revenue was due to increased customer base growth and expansion markets. Customer growth and expansion is due to the aggressive moves T-Mobile has been making to purchase more spectrum. The expansion and positive customer growth has offset the low ARPU. Bandyopadhyay (2016) said,” With greater maturity in the marketplace, operators attract more marginal customers leading to inevitable squeezing of ARPU and margins”. Competition is fierce in the wireless industry, and organizations are desperate to attract new customers or steal customers from each other. Something must give and one of the best ways to do that is by offering low prices. T-Mobile’s ARPU is low due to competition and to the aggressive moves that the organization has been making through its strategies. T-Mobile wants to make its services affordable to all and mostly families. Competition is affect prices. T-Mobile had to make its prices more attractive if it wanted to beat competition. Customers were willing to give up better coverage to save on their wireless monthly charges. The strategy worked for T-Mobile and made the fastest growing wireless company in the country. Economic theory would predict that a monopoly area would have higher prices, and thus higher ARPU and lower take rate, than an area with competition.

ST Strategies

T-Mobile’s leadership is the main reason the organization has been successful. Since taking over as T-Mobile’s CEO, John Legere has transformed the wireless industry in the U.S. John Legere became the organization’s CEO in 2012. Since then, T-Mobile has more than doubled its customer base from about to 33 million customers to over 70 million customers. His aggressive strategies have so far paid off and made T-Mobile US a major player in the wireless industry. Under his watch, T-Mobile overtake Sprint as the third largest carrier in the U.S. In March 2013, The Un-Carrier marketing campaign begun. The campaign is John Legere’s signature initiative to reinvent T-Mobile and make a force to be reckoned with. T-Mobile Introduced twelve elements every few months. T-Mobile is lacking diversification compared to its top two competitors, Verizon and AT&T. Verizon and AT&T both offer home internet. AT&T merged with Direct TV. The point of the diversification strategy is to set a brand apart. Verizon and AT&T are aggressively diversifying their organizations. T-Mobile was in talks with Sprint to merge but the merger did not go through. In addition, T-Mobile and Sprint merging cannot be called diversification. T-Mobile has many options to diversify its operations. There are four potential players in the merger discussions. Charter, Comcast, Dish, and Sprint. Most likely, T-Mobile, will merge with one of this companies. The best merger, in my opinion, would be a merger with a cable company. Technologies are changing every week. Customers are streaming more and more. A merger with a cable company such as Comcast would make T-Mobile an even more competitive organization. The merger would give T-Mobile access to new customers and to combine its already successful Un-carrier strategies with offers that include home internet and TV bundles. Under, John Legere, T-Mobile has more than doubled its customer base. Effective leadership is essential to a successful organization. Per Matassa 2006, Successful implementation of management programs requires explicit buy-in by senior management, as they determine strategy and must provide insights into the objectives of the organization.

WT Strategies

T-Mobile US Operating Expense for Q4 2016 was $942 Mil. T-Mobile US Interest Expense forQ4 2016 was $-399 Mil. The higher the ratio the stronger the company’s financial strength is. So as of December 2016, T-Mobile interest coverage was 2.36. Per Nasdaq.com, Verizon’s interest coverage was 7.06 at the end of Q4 2016 and AT&T’s interest coverage was 3.48 at the end of Q4 2016. Compared to the top two wireless operators in the U.S, T-Mobile’s interest coverage is low. T-Mobile is generating enough net income due tower payments and the acquisition of spectrum. The organization need to acquire low band spectrum that would give it more coverage and bring in even more customers. The good news is that T-Mobile is growing at a record pace. The organization more than doubled its customer base in the last four years from 33 million to over 72 million. Low and spectrum, which helps with signal penetration into buildings, has been the pain point for T-Mobile’s coverage. T-Mobile took part in the government auction and won big. In this year’s auction, T-Mobile has more than quadrupled its low-band spectrum holdings. T-Mobile won 45% of all spectrum sold in the auction. T-Mobile picked up spectrum with licenses covering 100% of the country and Puerto Rico. The successful purchase of low band spectrum is going to make T-Mobile US one of the top wireless provider in the country. AT&T and Verizon has a used spectrum holdings and it is already congested and crowded. Customers are going to enjoy better quality service on an already fast network. The purchase will help T-Mobile increase its net income and in turn increase its interest coverage ratio. Being able to bring in even more customers and not have to invest as much on spectrum for the next few years will increase T-Mobile net income.

BCG Analysis for T-Mobile US

Stars

T-Mobile more than doubled its customer base in the last four years. T-Mobile went from 33 million customers to over 70 million customers. Customer growth has been the main reason. Consumer Intelligence Research Partners reported That “in 2016, T-Mobile easily posted the highest growth rate for new phone activations among customers transferring from a competitor, at 42% of its base that was at risk of leaving in the quarter.” Verizon was at 14%, AT&T was at 10%. Combining both customers who transferred other carriers and new first time mobile phone users, T-Mobile had a net 31% of activations. Verizon was at 1% and AT&T was at 3%. T-Mobile outstanding industry-leading customer growth was due to its Un-carrier strategy. T-Mobile made it its priority to become customer friendly. T-Mobile launched 13 Un-carrier strategies in four years. The organization eliminated contracts, offered free international data roaming, introduced unlimited music and video streaming, upgrading phones anytime, and latest move eliminated all taxes and fees with all unlimited plans. T-Mobile went from the fourth largest wireless operator in the US to third. T-Mobile strategies for growth have been paying and it should continue the same trend as it is also expanding its coverage with the latest spectrum purchase from the government auction.

Cash Cows

T-Mobile has always had issues with network coverage especially in the rural areas. Compared to other organizations such as Verizon and AT&T, T-Mobile was lagging in coverage. T-Mobile’s network is the fast 4G LTE network (Figure 3). T-Mobile has an opportunity to make its network a cash cow. T-Mobile’s network evolution has been significant to its success. In 2013, T-Mobile had zero LTE point of presence. Next, T-Mobile covered 305 million customers with its LTE coverage. In another word, T-Mobile is, now, covering 97% of Verizon’s customers. Today, T-Mobile covers 314 million people and in pace to cover 320 people by the end of 2017. T-Mobile is the only organization that offers WIFI calling, a service that allow customers to connect to any WIFI hotspot and use their devices as if they are connected to regular towers. Low-band spectrum has been a pain point for T-Mobile’s network coverage. The low-band spectrum allows signals to penetrate homes and buildings. The organization made spectrum deals to cover more point of presence (POP). Today, T-Mobile covers 258 million with its low-band spectrum. The need to cover more POPs is dire for its continuous success. We started to analysis as the government auction to bid on spectrum was taking place. T-Mobile purchased 45% of available low-band spectrum and spent eight billion dollars. After the purchase of low-band spectrum T-Mobile is going to cover almost every inch of the US and Puerto Rico.

Question Marks

Voice stream PCS, Suncom Wireless, Eliska Wireless, Aerial Operating, and Metro PCS Company are all subsidiaries of T-Mobile USA. Out of all its subsidiaries, Metro PCS is the only wireless provider that have been posting strong customer growth and bring more revenue than all the other subsidiaries together. The other subsidiaries are either losing customers or breaking even. In 2016, prepaid net additions were 2.5 million which lead the prepaid industry. It would have been more if the other subsidiaries did not lose customers. Wholesale net additions also added customers, however wholesale ARPU is very low compared to the industry average. Both the subsidiaries and wholesale units have high prospects have high growth prospects. Since subsidiaries operate as separate entities, the effect of the slow growth is not negatively affecting T-Mobile US operation or growth. Some subsidiaries are fast growing and can turn into Stars with time.

Space Matrix Analysis

The Space analysis recommends aggressive growth strategies. T-Mobile is in a strong position and should act to maximize its strategies. T-Mobile US need to continue its wireless revolution to build on its already existing competitive advantage. The organization should also match any moves by its top competitors, especially the ones that could made by Verizon and AT&T and stay ahead of the curve. T-Mobile needs to keep innovating its Un-carrier strategy by keeping prices lower than competitors and by keeping the pressure. The organization need to keep its network expansion which will allow it cover new markets. T-Mobile US needs to keep the pressure on competition and attack their strengths. The aggressive marketing campaigns, that T-Mobile US has been waging, should continue to avoid complacency. T-Mobile should also use its strong financial position and keep attacking its competitors with weak financial positions such as Sprint. The organization should also keep attacking its competitors’ weaknesses. T-Mobile should also keep offering customers different service from competition such as WIFI calling, data international roaming, free calls to Mexico and Canada and Volte technology to increase its competitive advantage. T-Mobile needs to keep growing by either merging with a wireless company or even better a cable company. This move would allow T-Mobile to become me diversified and offer alternative services to customers. T-Mobile US needs to develop new technologies such as 5th generation wireless systems. Developing a 5th generation technology is needed to align its aggressive strategies. T-Mobile US would support increasing its competitive advantage by staying aggressive with developing new technologies.

IE Matrix Analysis

T-Mobile’s EFE total weighted average is 3.64 and IFE total weighted average is 3.75. The IE matrix results suggest that T-Mobile should follow intensive and aggressive strategies. One strategy is market penetration. Market penetration would help T-Mobile US to increase its market share. The organization should introduce new products and services to stay aggressive. A merger with a cable organization would make T-Mobile to introduce new products and services. T-Mobile is already offering low prices and it is also pursuing a very aggressive marketing campaign. The organization has been advertising its brand, products and service in every way possible. In the last four years, T-Mobile US has more than doubled its customer base. T-Mobile should continue its intensive and aggressive moves to gain more market share. Market Development is another strategy T-Mobile US can pursue. T-Mobile US should keep expanding its network by purchasing more spectrum and especially low-band spectrum. Network expansion would help T-Mobile US address one of its main pain points. The lack of network coverage in rural areas and in certain states like Montana has been T-Mobile’s weaknesses. This move would align with T-Mobile’s already aggressive strategies like the Un-carrier strategies. T-Mobile US should look to increase its ARPU by pushing already existing products such as mobile hotspot and ask its sales force to match its aggressive strategies by offering customers add-ons such Name ID which allow customer to filter incoming also and avoid scam calls among other features. T-Mobile should also focus on increasing its business accounts. The organization is already offering low prices for business accounts where each line cost only 16 dollars. T-Mobile CEO John Legere said that 40 percent of carriers' wireless revenue comes from business users. T-Mobile US market share of business accounts is low compared to competition. Product development is another strategy T-Mobile should use for its aggressive campaign. Product development can be achieved through addressing customer needs or extending the brand. Operationally, T-Mobile should consider backward integration, forward integration and horizontal integration.

Strategic Alternatives

T-Mobile introduced an aggressive strategy to businesses through its 9.0 Un-carrier business. Business accounts make up about 14% of T-Mobile’s wireless sales. Business accounts remain low compared to other wireless organization. Business accounts are different from regular accounts (individuals or families). Businesses value network quality and reliability over low cost. For example, a truck delivery business would not be able to use T-Mobile’s network due to its lack of coverage in rural areas. Business accounts are still a challenge for T-Mobile US. Per T-Mobile’s CEO, 99.7% of business employee over 500 employees and 90% of businesses employee less than 20 employees. T-Mobile Us has a lot of catching up to do when it comes to business accounts. T-Mobile should focus on an aggressive Un-carrier strategy for businesses. It should follow the same strategy for the business segment as it did with the consumer segment especially with the new spectrum the organization just purchased from the government auction. The simplicity and transparency of the 9.0 Un-carrier business strategy should be a strength for T-Mobile as the other wireless operators keep offering more complicated and more expensive business plans.

Evaluation of Organizational Structure

T-Mobile Us is include T-Mobile and Metro PCS. T-Mobile US president and CEO is John Legere. He has served as the company’s leader since 2013. He has over 34 years of experience in the wireless communication and technology industries. His Vice president is David Carey and has been with the company since 2013. He also has 34 years of experience in in the telecom and energy industries. T-Mobile US subsidiary, Metro PCS, is run by Tom Keys. Tom Keys is also the president of T-Mobile Indirect channels. T-Mobile’s organizational structure type is hierarchical. This type of structure has clear lines of communication, unifies department, managers are the clear leaders, and subordinates know to whom address any questions or concerns. The hierarchical structure promotes efficient operations and cost savings through economies of scale. This type of structures usually present some challenges when it comes to communication between departments. We can say from experience working for T-Mobile US, that some of the disadvantages which come with the hierarchical structure such as lack of communication, lack of innovation, and lack of collaboration does not apply to T-Mobile US. Upper management has an Open-door policy and innovative ideas are welcomed. Room for growth within the organization is high and the organization prefers to promote from within. The culture of the organization is veered toward employee satisfaction. Pay is very competitive and the organization either matches or beat the competition. T-Mobile was recognized as the “Best Place to Work” and “Top Employer” by industry experts, the media, and human rights organizations year after year. As an employee of this organization, it is very hard to find any recommendations to change the way the company is doing business. However, the company is relentless in its pursuit to be the best organization to work for. Continuous improvements are very important to the leadership of the organization. T-Mobile US is always searching to better itself through surveys and leadership involvement with all employees

Product-positioning map

A Product Positioning Map (PPM) is a widely utilized tool used by management to identify target consumers to focus marketing efforts on setting the stage for deciding how to meet the needs and wants of users (Peppard & Rylander, 2006). In other words, the key to a product thoroughly understands the dimension consumers utilize to evaluate competing for marketing programs and make purchasing decisions.

Understanding the consumer behavior and ideas enables T-Mobile US to understand the marketing plan with the company products positioning. However, an effective product positioning strategy meets two essential criteria; first, it exclusively differentiates T-Mobile US from their competitors. Secondly, it leads consumers to expect slightly limited service than a business can deliver (Tiwari & Buse, 2007). Product positioning includes tailoring product attributes, services, image, price, packaging, distribution to meet the needs and demands of consumers in a precise segment of a market which allows the company to identify how they can compete in the market. The product positioning map development provides crucial data and information that can be used to remain competitive within. Management of T-Mobile US needs to understands how to target consumer’s perception in regards to the products at the market and enables T-Mobile US to identify the market position. T-Mobile US can use PPM in creating differences and dimensions of its major products and primary competitors. Also, a PPM cab be used as a tool to gather customer’s data and enable managers to develop differentiation and positioning with to analyze the competitive structure of the market by customers. Also, T-Mobile US should use the perceptual map technique to visually show the intention of the customers, and to analyze the position of the product line and brand to competitors.

The three essentials to great positioning are they must be motivating, credible and unique. “Brands run into trouble when their positioning could be plausibly claimed by a competitor, or when they move too far from the core of their appeal to consumers, or when they differentiate on dimensions unclaimed by other brands but un-motivating” (Tiwari & Buse, 2007). Thus, to appropriately understand the position of the T-Mobile US in the minds of consumers, a product positioning map (PPM) would be used to identify two key criteria to differentiate themselves from their competition.

Proper positioning requires that the company engage the consumer. Therefore, T-Mobile US communications and messaging should be about not just the organization but also about the customers’ needs and interests. According to Tiwari & Buse (2007), “company website must not be all about the company it must be all about the customer too (Peppard & Rylander, 2006).” This statement would serve T-Mobile US well in recognizing there is a lack of connection with voters throughout their website. Placing more interactive elements like surveys, questions from customers, offer discounts to T-Mobile US partner businesses, and volunteer involvement on their home page would show a willingness to connect and be responsive to the customers’ needs.

T-Mobile somehow managed to expand the nature of its data gathering to best its rivals and to make them emerge, and additionally to enhance the nature of the telephones and make more refreshed adaptations accessible even more quickly. In the perceptual maps given under the whole document client unwaveringness and consumer loyalty are judged. Considering the exploration picked up from client audits, T-Mobile has much that is left to be wanted. Out of the fifty remarks surveyed, practically everybody gave a negative remark on either the client benefit or on overall service.

From those remarks, many expressed that they were leaving T-Mobile to go to another organization since they felt overlooked, conned and misled about their administrations. Losing clients for poor administration is inadmissible for any organization. By enhancing their quality and turning into the main standard in this field for client benefit, they could pick up a lot of clients who would leave a specialist organization that they are burnt out on battling with.

Evaluation of Strategies and Objectives on Favorable Market Position of T-Mobile US

Success of any organization is dependent on the strategies of a company set by its management. In case an organization does not have successful strategy in place, it cannot project any type of success, in any field whether it may be sales or marketing. The continuous expansion of its 4G LTE, the increasing need customer's data usage and a phone that works globally, T-Mobile able to drastically increment its piece of the overall industry from its current 3rd place position.

T-Mobile US offers a range of services to its customers. Wi-Fi calling and texting is a feature only T-Mobile US offers to its 70 million plus customers for no extra charge. Customers can turn any Wi-Fi connection to the cellular tower. Spectrum-wave penetration is not always reliable, especially when trying to make calls inside buildings made of concrete. Houses or building with metal roofs makes spectrum-wave penetration very hard. T-Mobile US is the only wireless company that offers such a service. Customers can also use Wi-Fi when traveling to another country. This feature gives T-Mobile another tool to stay above the competition. T-Mobile US offers its customers international calling, texting, and data when they travel to Europe. Customers can connect to Deutsche Telekom network when in Europe. T-Mobile US customers can also use their phones when traveling to Canada and Mexico at no extra charge. T-Mobile US is aggressive in its offers when it comes to data use. T-Mobile US was the first company, amongst wireless companies, to offer its customers unlimited data. T-Mobile US is leading the industry with unlimited data plans. Even though Sprint is cheaper than T-Mobile, it does not have as a reliable of a service as T-Mobile US. Also, T-Mobile US 4G LTE network covers more Americans than a sprint. T-Mobile also leads all companies in uploads and downloads speed. The threats that T-Mobile faces apply to all wireless communication companies. Threats, such as government regulations and competition, do not put T-Mobile US at a disadvantage. T-Mobile US is also going to spend 10 billion dollars to purchase more spectrums at government auctions.

T-Mobile US has revolutionized how wireless carriers do business. As T-Mobile US put it “We are the Un-carrier, Unsatisfied with the status quo and Unafraid to innovate. The Un-carrier strategy is an approach that seeks to listen to the customer, address their pain points, bring innovation to the industry and improve the wireless experience for all. Per Forbes.com, In November, T-Mobile launched its highly lauded “Binge On” feature, which enables users to stream video onto their mobile devices without it counting against their data plans. Netflix users of the world rejoiced, and the move undeniably helped to drive T-Mobile’s massive additions last quarter. Also, per Forbes.com, People are dropping their old carriers and hopping on the bandwagon for a number of reasons. T-Mobile has lured quite a few customers away from Verizon by introducing a set of low-priced leasing plans. Yet the network’s real strength is its innovative data capabilities. T-Mobile added more customers than any of its competitors for the last two years. T-Mobile US added more than 8 million customers in each of the last two-quarters. These additions represent far better growth than any other company operating in the wireless sector.

Description of T-Mobile Strategies:

T-Mobile US, Inc. (NASDAQ: TMUS) is Based in Bellevue, Washington. T-Mobile US is the third largest provider of wireless voice, messaging and data communications services in the United States. T-Mobile US was named after T-Mobile Germany. T-Mobile US offers its services through its subsidiaries such as Go Smart Mobile. T-Mobile US operates two flagship brands, T-Mobile and Metro PCS. T-Mobile acquired Metro PCS in a reverse takeover in 2013. T-Mobile offers post-paid plans, and Metro PCS offers pre-paid plans. Deutsche Telekom is the majority shareholder of T-Mobile US, owning 65% of the company. Emotional changes in the system of the organization have permitted T-Mobile US to improve as one of the principle players in much of business among its competitors. T-Mobile US has improved in growth and development and being useful in new technology, to customer’s satisfaction needs through the implementation of creating new plans on the wireless network. The company has increased in its innovation, by setting up the needs of clients, besides, the company has a comprehensive portfolio in its products. One major marketing strategy that T-Mobile US is using is the marketing mix. The marketing mix, also known as the 4ps, is developing at a faster rate by T-Mobile US, because of sales of network and it brand quality in the market. Besides, the company has a valuable and efficient customer service in product differentiation. One other strategy of T-Mobile US is the use of skimming price beyond that of its competitor’s. The company maintains its competitive pricing, to overcome its competitors.

With Place in the marketing mix of T-Mobile US, the products are on various channels in which the market classified into three segments including Segmentation of geographic areas like urban and rural areas of the market, and also Demographic: such as income level, occupation, and ages of customers. T-Mobile US also has the Targeting group of the youth, middle class and high class of the market and the third classification is the Positioning of the market, which has innovation and user-friendly products. The company has several means and channel of promoting its products. Advertising channel is one channel that T-Mobile US uses in developing the products, by organizing festive periods which increase the company brand recognition. These business strategies of T-Mobile US have enabled the company to increase its returns at a faster rate.

Key Milestones of T-Mobile US

• Vision and mission statement

• Strategies to become more proactive

• Commonalities with minorities stressed

• Organize and coordinate regular volunteer tasks

• Create culture accepting of change

• SCM to oversee precinct development

• Written policies and procedures manual

• Conflict management and ethical standards

• Use social media to push messaging

• Incorporate website improvements to engage users

• Data-mining to compile a customer database

• Implement financial diversification program

• Excess cash management planning

• Enlist hire firm to create internet messaging promotions

Market, financial, and product or service goals Results

Establishing written vision and mission statements will help to create the culture of proactivity, inclusiveness, and willing to accept change that has been identified. “Evaluating potential market segments requires strategists to determine the characteristics and needs of consumers, to analyze consumer similarities and differences, and to develop consumer group profiles (Harbord & Hoernig, 2012).” This will help focus the organization in a common direction. Then, focusing efforts toward PCM/PCW and volunteer recruitment, training, and oversight will ensure there are motivated and trained employees ready to handle their tasks. Also by establishing written procedures and policies in agreement with ethical expectations and conflict management procedures, a workplace environment of stability and clarity will likely flourish which in turn will enable for easier recruitment and greater retention of personnel. So far milestones to improve messaging, these are intended to create an avenue for improved communication and goodwill with the community. There is a need for marketers to convince consumers that their brand will make life easier or better (Shamma & Hassan, 2009).

A timely messaging advertisement with a simple message of how the policies and candidates recommended by the T-Mobile US could improve the overall customers. Thus, it would enable rapid responses to attacks made by rival companies while the attacks are still fresh in the consumers’ minds. Lastly, focusing on diversifying the income stream of the T-Mobile US will reduce the dependency on having to invest the time and resources into fundraising dinners annually. This will also enable T-Mobile US to have a more secure, repetitive income stream and reduce its reliance on any single source of income. Plus, by instituting strategies to disburse its excess cash holdings into the items the T-Mobile US will see a marked increase in its brand image, reputation, and overall results.

Financial Projection

An organization's financial projection is helpful in signing the strategic deals and is considered by numerous specialists to be the heart of the raising capital process. It gives data on your proposed dare to different speculators, and providers to exhibit how you plan to utilize their cash, and to set up a reason for believability of your venture.

A monetary projection will give your loaning office (financier) an understanding into your business opportunity and accordingly, decidedly influences your advance application. A money related projection is practically compulsory on the off chance that you need to get capital from private financial specialists, investors, or business loan specialists, for example, banks or trust organizations. A money related projection that is all around arranged will fill in as unmistakable verification of your capacity to oversee and arrange for, which is a noteworthy consider a lender's choice to give you the assets you require.

Any learned broker or imminent speculator will anticipate that you will be proficient in your approach, completely arranged and furnished with an altogether looked into and elegantly composed monetary projection when looking for their support.

In this section I will do financial analysis of the company T mobile in order to check the growth level of company and the trends company will follow to achieve its goals. Per a recent analysis T-Mobile US, Inc. had revenues of 9.61bn in the first quarter of 2017. Per the analysts reporting it is above 11% from the prior year’s same quarter earning graph. Moreover, it is projected that company will follow same pattern of growth in revenue in 2018 that will be about 36.84% higher than this year and in 2019 it will reach at the 36.15% growth level due to innovative apps and dealing with I phones.

T-Mobile US receivables turnover has been increasing from year over year. In 2017, the receivables turnover sh1ould be at 23.78. It will increase the next two years 25.55 (2019) and 27.22 in 2016. An increased high turnover means that cash is collected more quickly for use in the company.

T-Mobile US quick ratio will keep steady, 1.60 in 2017 and 1.61 in 2018 and 2019. The company will be only able to cover more than its current liabilities by using all cash-on-hand, liquidating short-term marketable securities and monetizing accounts receivable.

T-Mobile US has to stay aggressive going after its competitors, and so far it is winning. The gross profit margin will increase in the next three years. In 2017, the gross profit margin is projected to increase to 57.88, and in 2018 it will be increased to 63.32. The same trend will continue in 2019 as it is projected to increase to 68. The gross margin profit projected increase is an indication of ag compressive competition. The projection also aligns with the organization's strategy to become the number one wireless company in the country.

The operating profit margin for T-Mobile US also projected to be increased in the next three years. In 2017, the operating margin was 15.79%, and in 2018 it will be 18.44%. The profit margin increased in 2019 to 14.21%. The projected increase in operating margin is a good sign. T-Mobile US strategy to be more competitive and offer the best handsets and products is working. It will also increase due to the roll out of the new low-band spectrum just purchased and will deploy in the next two years.

In 2017 Earnings per share is expected to grow by 0.55 and will reach at 2.5 due to better growth rate and 0.5 million more clientages to the company. This clientage will boost up the revenue of company as well as the market share will be improved. In the next year 2018 EPS will be raised up to 3.02 due to better technical usage, right management strategies and the full deployment of the newly purchased spectrum. In 2019, the organization will realize the dream of earning EPS at 3.77 that will be close to its competitors and the organization is projected to double its EPS section in the next 5 years.

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