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FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Lose over a 1/2 million customers and you get job cuts

Just a fact of life. When a company loses that many customers, there WILL be job cuts. And just based on how many low level employees there are as compared to execs, they will suffer the most job cuts by far. Do I think the CEO and the strategic planning staff should also be let go? Yes. But even for them this was mostly out of their control. Deutche Telekom execs in Germany were making the calls. And the shrinking of TMO in the US may even help them dump TMO, which is what they want anyway.
--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/2012-election/



chamberc
Premium
join:2008-08-05
Irving, TX
said by FFH5:

Just a fact of life. When a company loses that many customers, there WILL be job cuts. And just based on how many low level employees there are as compared to execs, they will suffer the most job cuts by far. Do I think the CEO and the strategic planning staff should also be let go? Yes. But even for them this was mostly out of their control. Deutche Telekom execs in Germany were making the calls. And the shrinking of TMO in the US may even help them dump TMO, which is what they want anyway.

And I guess you want the janitor to run the business when the leadership is gone? Right, now there's a bright idea.

rahvin112

join:2002-05-24
Sandy, UT
reply to FFH5
DT wanted to toss T-Mobile because they didn't have the spectrum assets or cash to do a 4G upgrade. With the failed ATT deal (which IMO DT always bet would be killed) they got the spectrum and enough cash to pay for the LTE upgrade and a solid roaming agreement with ATT at the cost of half a million customers. It was a smoking good deal on their side. I haven't read the last 10Q but I wouldn't be surprised if DT management has changed their mind about T-mobile now that they have the assets they need to compete.

If DT still intends to get rid of T-Mobile they'll likely wait till after the major LTE build-outs are complete in 2014 at which point someone might be in a position to gobble them up. The problem is that the only real candidate was Sprint (they are the only one the government would allow to buy) and with the iPhone deal they don't have the cash to do it anymore. We'll have to wait and see, I imagine once the old nextel network is gone next year and if the iPhone deal works out in their favor they might have the assets to take T-mobile and reduce the US market to 3 major carriers. But that will only be true of DT management decides to do it, after all the ATT breakup assets fixed many of T-mobiles problems.

As an aside, I'd argue DT management knew the ATT deal would never go through and that's why the breakup fees included spectrum and enough cash to cover their LTE build-out. Either way DT came out ahead.