EMC on T-Mobile USA Messaging
>> T-Mobile Seeks to Use International Standing and First-To-Market Capability to Make Its Mark in Messaging
EMC Cellular
May 12, 2003
e-searchwireless.com
T-Mobile USA is the fifth largest operator in the USA and had just under ten million subscribers at the end of 2002. It is one of the USA's major GSM operators and all of its subscribers, 14% of whom are on prepaid services, use the technology. T-Mobile USA was formally known as VoiceSteam but the operation was re-branded in 2002 after Deutsche Telekom completed the acquisition of VoiceStream in June 2001. T-Mobile USA is now a subsidiary of T-Mobile International and is part of the T-Mobile group, which also holds properties in Germany, the UK, the Netherlands and Austria.
T-Mobile USA has offered SMS to its subscribers since 1999 and the its launch of both MMS (November 2002) and video messaging (March 2003) have established it as a market leader in the messaging arena. Its agreement with manufacturer Danger, which led it to bring the Sidekick device to market in October 2002, also enhanced its reputation.
The operator markets text messaging as 'an easy, fun and inexpensive way to stay in touch with your friends when you are on the go'. The emphasis is on the ability to communicate wherever you are, SMS' capability as a two-way messaging tool and its pricing. SMSC's are provided by CMG and Comverse, while the operator's MMSC is provided by Ericsson.
Consumer Messaging
T-Mobile USA initially promoted SMS as a tool for sending peer-to-peer messages. The approach has now evolved and through its 'My T-Mobile' portal, T-Mobile USA offers its subscribers access to a variety of services including instant messaging and SMS alerts. A wide range of content is provided through the t-zones mobile data portal. Instant messaging is provided by AOL Instant Messenger, with T-Mobile USA stressing how the experience of using it is similar to instant messaging from a desktop. In those cases where subscribers want access to instant messaging on their handset, T-Mobile USA encourages them to purchase a Samsung R225m () or a Nokia 3390 (). T-Mobile USA's Alerts service is a push information offering provided across the market. It allows subscribers to select the material they wish to be sent and also allows them to specify when this data should arrive on their handsets. Over 30 topics are included in the Alerts, including such subjects as:
Weather
Sport
Health
Politics
Music
Movies
Horoscopes
Jokes
TV
T-Mobile USA subscribers are able to access an internet based backing for their messaging applications. The T-Mobile USA website, My T-Mobile.com, allows subscribers to send an SMS from the company's homepage, while the communication section of the site allows subscribers to configure such facilities as the Alerts service. Configuration of T-Mobile USA's email service is also available on the website, with subscribers able to change their handset's email address. Emails can normally be sent to and from a handset using the subscriber's phone number (number@tmomail.net).
In an attempt to increase the SMS traffic handled over its network, T-Mobile USA has involved itself with Nashville Star, a Country & Western show which began in March 2003 and is in the same mould as American Idol. Through this initiative subscribers from seven operators, including T-Mobile USA, are able to vote for their favourite contestants on a weekly basis. The initiative involves the use of a universal short code between the seven operators which is something T-Mobile USA hopes will improve the popularity of messaging even further.
The latest innovation to be offered to T-Mobile USA subscribers is video messaging. Subscribers wishing to use the service must sign up to t-zones, the operator's data and content portal. The service is available over the Nokia 3650 , which is retailing for USD 300 with a USD 100 rebate. This handset allows video to be recorded at 10 frames per second and plays back at 15 frames per second. T-Mobile USA has worked with Nokia to ensure that the video includes sound (Cingular Wireless is also selling the Nokia 3650 but its offering does not include the sound component). Video content can be sent to other handsets or to desktops via email. T-Mobile USA is the first operator to bring video messaging to the market in the Americas and is using video messaging as a differentiator between it and the other operators in the market.
T-Mobile USA launched North America's first MMS service in November 2002. Subscribers who are interested in this service need to sign up to one of the operator's t-zones tariff plans, which range from USD 2.99 per month for 1MB of data to USD 10 per month for 10MB. T-Mobile USA reported that 1MB equates to approximately 25 picture messages. MMS messages can only be sent to another t-zone subscriber's handset or to an email address - MMS cannot be sent to any other handset simply by keying in that handset's phone number. The MMS service is branded 'picture messaging' and is available over the Sony Ericsson T300 () and the Motorola T720i (). Retail prices for the two handsets are USD 99.99 and USD 199.99 respectively (both prices are after rebate). The Motorola T720i camera attachment is offered free with mailed rebates.
Corporate Messaging
T-Mobile USA's corporate services have been spearheaded by its provision of the Sidekick device. Through a partnership with the vendor Danger, T-Mobile USA was able to bring this device to market in October 2002. The Sidekick offers access to SMS, email and instant messaging, as well as traditional voice calls and wireless internet surfing. Though Sidekick's impact has since lessened, Danger is planning to bring a GSM tri-mode, MMS-enabled version to market in 2003. Future plans also include an integrated camera and support for CDMA. Other devices offered to T-Mobile's corporate subscribers include the blackberry, primarily for wireless email, and the T-Mobile MDA (Mobile Data Assistant), which also offers wireless email.
As for consumers, support for corporate customers is provided over the internet through a mobile access portal, which is particularly targeted at SMEs. T-Mobile USA's corporate messaging is broadly very similar to that offered to consumers, including such services as SMS and wireless email - the obvious differences are the costs and inclusive minutes to be found in the tariff plans.
T-Mobile USA splits its business subscriber base into two groups: retail & business and corporate, with the operator offering different tariff plans for each segment. An example of a typical plan available to business subscribers includes 1,500 whenever minutes, unlimited SMS and unlimited wireless internet access costing USD 99 per month.
Pricing
Subscribers have a choice of three payment methods for SMS. Regardless of which method they choose, the first 50 incoming SMS are free. Over and above this subscribers have to pay for both incoming and outgoing SMS. This can be done on a per message basis under which all text messages cost USD 0.05. Alternatively subscribers also have the option of paying USD 2.99 per month for 500 SMS per month. This equates to USD 0.006 per message, a considerable saving and one that suggests T-Mobile USA is attempting to encourage heavy usage of the service by pricing it as a competitive option to free local fixed calls and PC-based instant messaging. This monthly SMS quota includes instant messages and alerts. There is also an option to pay USD 10 a month for unlimited SMS and unlimited calls to other T-Mobile subscribers. However, this last option is not available in all cases.
T-Mobile USA SMS Tariffs
Tariff SMS Monthly Equivalent Additional
Included Rate Price per SMS SMS
Pay per use - 0 0.05 -
500 SMS 500 2.99 0.01 0.05
Unlimited SMS Unlimited 10.00 - -
Source: T-Mobile USA, rates in USD dollars.
Instant messaging costs the same as normal SMS, logging into the service costs the same as sending one SMS. The T-Mobile video service costs USD 2.99 per month, which includes approximately 10 video messages or 30 still photos. Messages sent over this limit will cost USD 0.30 each. Voice services are charged separately. The MMS service requires a monthly payment of between USD 2.99 and USD 10.00.
Company Strategy
T-Mobile USA's strategy is based on two major points. One is the operator's international presence; the second is being the first operator in the USA to offer such services as MMS and video messaging.
T-Mobile has been keen to promote the ability of its subscribers to roam on its networks in Europe and North America using voice and SMS services. The universality of t-zones and the cross-network branding are part of the company's strategy of creating a transatlantic operator. The transition from VoiceStream to T-Mobile USA has been successfully carried out and the operator is now pushing its range of branded services to the US population.
The promotion of MMS and video messaging, among other things, has reinforced and helped push the new brands. Though other operators in North America offer a picture messaging service that allows images to be sent to email addresses, T-Mobile USA was the first to launch MMS, allowing images to be sent between handsets. Being first, as it also was with video messaging, is an important step in the company's aim of enhancing its reputation in the market.
Like other operators, T-Mobile USA has signed a range of content deals and has identified the opportunities behind TV and SMS voting. It is through such market awareness that T-Mobile USA has managed to increase its messaging traffic. The amount of text messages handled by T-Mobile USA during 2002 exceeded 1,600 million. Its traffic levels are more in less in line with those of Cingular Wireless, the largest operator in the USA, though both of these fall behind AT&T Wireless in terms of the total number of messages handled. SMS traffic levels at T-Mobile USA were approximately 200 million in Q1 2002 and rose steadily through the year. The operator also reported that over one million MMS were sent over its network during Q1 2003, indicating that its picture messaging service had gained a substantial level of popularity. <<
- Eric - |
