T-Mobile Completes Merger With Sprint
About the merger...
T-Mobile has recently completed its merger with telecommunication giant, Sprint, we take a look at what the partnership has to offer.
About the merger:
T-Mobile’s massive $26.5 billion merger with Sprint officially closed April 1. Mike Sievert, who just replaced John Legere as CEO of the combined company, said Wednesday that bringing the nation’s third and fourth-largest wireless carriers together might be bigger than expected and happen faster than planned.
“We feel a lot of optimism about the potential to go faster than we were expecting, and potentially to go bigger than we were expecting on both growth and synergy attainment,” Sievert said on CNBC following T-Mobile’s first quarter earnings report.
Still, the pandemic is certainly affecting T-Mobile, which said today it expects COVID-19-related costs to be in the $450 to $550 million range for the second quarter of this year. The company also did not provide full-year guidance due to the impact of COVID-19.
Sievert said that one driver of the merger’s bigger growth potential is churn from Sprint customers.
“As more and more Sprint customers get exposure to the T-Mobile network, their satisfaction levels are rising,” he said on CNBC. “We may see an improvement in the Sprint customer base faster than we were expecting.”
How are they doing?
T-Mobile posted record Q1 profits, beating expectations with earnings per share of $1.10, up from $1.06 last year. Revenue came in at $11.1 billion, slightly missing Wall Street estimates, and up from $11.08 million in the year-ago quarter.
In its first-quarter earnings, T-Mobile added 777,000 subscribers, 452,000 of whom were postpaid phone additions. Keep in mind, these results reflect the period before the Sprint deal closed on April 1. The company boasted that the results marked the 25th straight quarter in which T-Mobile led the industry in postpaid phone additions.
Postpaid subscribers, who pay at the end of the month and are valued more highly by the investment community as a key metric for success.
Looking to the future:
With Sprint now in the fold, T-Mobile has started to turn its attention toward improving its 5G network, beginning the deployment of midband spectrum it acquired as part of the deal in Philadelphia. This spectrum will enhance the range and speed of its existing 5G service, as well as bulk up its indoor performance.
The network will have 14 times more capacity in the next six years than T-Mobile alone has today, enabling the New T-Mobile to leapfrog the competition in network capability and experience.
Customers will have access to average 5G speeds up to eight times faster than current LTE in just a few years and 15 times faster over the next six years.
Within six years, the New T-Mobile will provide 5G to 99% of the U.S. population and average 5G speeds in excess of 100 Mbps to 90% of the U.S. population.
New T-Mobile’s business plan is built on covering 90% of rural Americans with average 5G speeds of 50 Mbps, up to two times faster than broadband on average.
A brand customers love
New T-Mobile will capitalize on the winning formula it built and double down on what customers love about the brand. It will also continue to be a force for good, pledging not only to be a bigger company but also a better company.
New T-Mobile customers should expect everything the Un-carrier has ALWAYS stood for: treating customers right, shaking up the status quo and being a force for good. The company will use its network to lift up communities nationwide and bring the benefits of 5G to as many Americans as possible, and it will continue supporting the programs and causes that matter most to employees and the communities they serve.
It began with the T-Mobile Connect plan. To address America’s urgent needs around COVID-19, T-Mobile fast-tracked its groundbreaking, lowest-priced plan EVER, launched on March 23.
Other initiatives to bring the New T-Mobile’s newly expanded network capabilities to the customers and communities that can benefit most will launch soon, including the Connecting Heroes Initiative to offer FREE unlimited talk, text and smartphone data to ALL first responders at ALL public and nonprofit state and local fire, police and EMS agencies Project 10Million, delivering free internet access and hardware to 10 million households over the next five years.
New T-Mobile customers will also receive industry-leading customer care, and all post-paid customers will have access to T-Mobile’s award-winning Team of Experts (TEX) model as it expands into every current and planned customer experience center.
The Talent War for Skilled Tech Workers
Post-pandemic, our biggest problem might be a lack of skilled tech talent. As companies move forward with their digital transformation plans, they aim to hire new staff and train their current employees. Out of 750 UK companies polled in a Studio Graphene digital report, 45% plan to hire new tech staff in the next 12 months and more than half (53%) intend to invest in training for their current workers.
Companies are realising that their survival now depends on a limited pool of qualified technology workers. Among the hardest-hit economies are those in Brazil, Indonesia, and Japan, but even the United States and the UK will experience the squeeze. “It’s pure supply and demand”, said Alan Guarino, a Korn Ferry vice-chairman. “Companies are paying more...but there’s still a shortage of high-skilled workers. Technology is the thread that runs across every aspect of business”.
Which Jobs Are In Demand?
According to a 2021 IT salary report by Robert Half Technology, the most in-demand tech jobs of the year include information security professionals, cloud architects, database administrators, systems analysts, and DevOps engineers, among others. But in those fields, it’s difficult to find hires with significant experience, multiple specialisations, and a high level of expertise. And multinationals such as Google, Apple, and IBM usually scoop them up.
Regardless of the exact role, companies need workers who can implement advanced security systems, target cloud and network vulnerabilities, document risk points and failures, and abide by new industry tech regulations. This will likely mean that companies start to take certifications like the ones pioneered by Google and Amazon, instead of insisting on four-year undergraduate degrees.
But even as coding boot camps and year-long certification programmes have ramped up to try to close the gap, smaller tech firms and startups struggle to compete with their bigger counterparts. Remote work doesn’t help matters. “Hire-from-anywhere policies will only heat up a tight candidate market”, said Ryan Sutton, a district president of technology staffing services at Robert Half. “Companies who were already having a hard time recruiting are no longer just working against local competitors, but potentially desirable companies across the country”.
How Can CIOs Solve the Crisis?
As governments try to do their part—Poland offers residency and potential citizenship to skilled tech workers, India offers broad IT, telecommunications, and cybersecurity programmes, and the Netherlands lets its foreign employees earn 30% tax-free income—company executives must take measures of their own.
Some CIOs have started looking to other countries to source expert talent. In the United States, where 80% of U.S. employers state that tech recruiting is a significant challenge, some firms are looking to Mexico, where 20% of college graduates have engineering degrees. As a result, tech companies such as Cisco and Intel have sourced labour from both the U.S. and Mexico.
To compete, here are some first steps:
- Invest in cybersecurity and cloud development training programmes
- Hire based on skills and expertise, not necessarily degrees
- Outsource to other countries with high percentages of skilled engineers and programmers
Overall, companies that broaden their search for talent and upskill their current employees will be best equipped for digital transformation. As Ritam Gandhi, founder and director of Studio Graphene, said: “Our research shows that, on the whole, UK businesses have adopted a long-term mindset [towards] technology and innovation”.