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Strategy report
To: Proximity mobile team From: Erika Holt Date: September 28, 2009 Re: T-mobile Android strategy analysis

This is my T-Mobile Android strategy analysis. T-Mobile showed its ability to compete with AT&T and iPhone and with Verizon and the Blackberry when they introduced the Google Android G1. Gen-Y might give up the iPhone and the Blackberry for the Google Android, but with the competition offering Android phones on better networks, it is doubtful that they will choose T-Mobile.


 * Company Profile**

T-Mobile USA was created in 2002 when Deutsche Telecom, its parent company, acquired VoiceStream Wireless and changed its name. It is an operating entity of T-Mobile International AG, which is a subsidiary of Deutsche Telecom AG. Based in Bellevue, Washington with 36,00 employees, T-Mobile is led by CEO Robert Dotson. Deutsche Telecom is traded on the New York Stock Exchange under the symbol DT. (T-Mobile Corporation., 2002-2009)

T-Mobile USA is a national provider of data services, wireless voice, and messaging that reaches over 268 million Americans. It currently has 33.5 million customers with a net income of $425 million dollars for 2009, down from $452 million in 2008. (T-Mobile Corporation., 2002-2009)


 * Competitive Landscape**

The driving force shaping the mobile market is the development of smartphones. T-Mobile is in direct competition with the two top players, AT&T, with its iPhone, and Verizon with the BlackBerry. T-Mobile competes with these leaders by creating new, less expensive phones, that are faster and have more bells and whistles.


 * T-Mobile's Strategy**

In 2007, T-Mobile USA teamed up with Google Inc. and other companies to form the Open Handset Alliance that developed the Android operating system (OS). This new OS is an open platform which allows developers and different companies to collaborate. (T-Mobile Corporation., 2009) T-Mobile released the Google G1, the first smartphone to run on the Android OS in October 2008. The G1 had sold more than 1 million units by December 2008 and, according to NPD, was the fifth-best-selling smartphone in the US after BlackBerry and the iPhone at the end of the first quarter. (Kharif, 2009).

Despite Android's limited success, the iPhone still dominates the mobile landscape:


 * six million handsets sold in the first year:
 * 50,000 applications available in the iPhone App Store compared to 10,000 Android apps (Gohring, 2009).

As Nancy Gohring notes, "Android hasn't yet lived up to the expectations set by Google, and some analysts say it doesn't yet present serious competition to Apple's market-leading iPhone." According to Eric Schmidt, the Chairman and CEO of Google, he envisioned Android to be running on thousands of phone models. (Gohring, 2009) T-Mobile currently is the only carrier that features Google Android. When this changes, it will be beneficial to Google, but it will be detrimental to T-Mobile and their new competitive edge.


 * Gen-Y**

T-Mobile is giving Gen-Y another enticing option that can be compared to the iPhone. They are taking another step with their new myTouch 3G model which is the predecessor to the G1. The myTouch 3G may be better competition with iPhone due to its sleeker design and longer battery life (Kharif, 2009), but according to Andrew Nusca and Jennifer Bergen, "the reign of the myTouch as the best Android phone out there will be short-lived. Motorola, Samsung and HTC have more Android-based handsets in the pipeline and several have shown themselves to be equal to or superior to the myTouch 3G." (Nusca, 2009)


 * Motorolla is coming out with CLIQ that uses Android and MotoBlur which is expected to increase the social networking ability of the phone (Perez., 2009)
 * Sprint is expected to introduce the HTC Hero in 2009
 * There are reports that Verizon and other companies are in the works of adopting Android phones. (TMobile Makes Way, 2009)

Within the next year, Gen-Y will have more options to compare to the iPhone with better customizing ability, on better networks. T-Mobile had a good strategy in the beginning, but they won't be the one's benefiting from it in the end. With Android going to other carriers, it will give customers the ability to wait until Android comes their network instead of switching to T-Mobile or AT&T and the iPhone. (Perez, 2009) This brings more competition into the mix with more carriers trying to become number three in this two way battle.
 * References**

Gohring, N. (2009, September 23) One year on, Android's not quite there yet. //SFGate home of the San Fransisco Chronicle.// Retrieved September 24, 2009, from http://www.sfgate.com/cgi-bin/article.cgi?file=/g/a/2009/09/23/urnidgns852573C4006938808825763A007753E0.DTL Kharif, O. (2009, June). T-Mobile's New myTouch 3G; The myTouch, T-Mobile's second Android smartphone, is smaller, lighter, and offers nifty new features -- but it faces stiff competition. //Business Week Online//. Retrieved September 22, 2009, from Lexis Nexis. Nusca, A. Bergen. J. (2009, September 22) T-Mobile myTouch 3G, the most bang-for-buck smartphone on the market (for now). //ZDNet The ToyBox.// Retrieved September 24, 2009 from http://blogs.zdnet.com/gadgetreviews/?p=7005 Perez, M. (2009, September 15) Motorola Seeks Carriers for Cliq. //Information Week The Business Value of Technology.// Retrieved September 22, 2009 from http://www.informationweek.com/news/personal_tech/smartphones/showArticle.jhtml?articleID=220000464

TMobile Makes Way for Cliq Lowers Android G1 to 130. (2009, September). //EWeek.com.// Retrieved on September 22, 2009 from LexisNexis.

T-Mobile Corporation. (2002-2009) //Investor Relations//. Retrieved on September 24, 2009 from http://cache.t-mobile.com/Cms/Files/Published/0000BDF20016F5DD010312E2BDE4AE9B/0000BDF20016F5DE01211CC33A17B495/file/TMUS%20Q1%20Press%20Release%20Final-Clean.pdf

T-Mobile Corporation. (2002-2009) //Overview.// Retrieved on September 24, 2009 from http://www.t-mobile.com/Company/CompanyInfo.aspx?tp=Abt_Tab_CompanyOverview

Blog proposal
TO: Proximity mobile team FROM: Erika Holt SUBJECT: Blog post proposal DATE: October 26, 2009

I propose we do our Proximity blog post on whether or not Google Android is going to take off. This post can be used to attract a new group of clients that might not know about the Android phenomenon that is about to explode into the smartphone market and how it is going to compete with the iPhone.


 * Rationale**

Google Android was first introduced solely on the T-Mobile network. Android is an open source operating system that can be tailored and used on any network. It has the ability to provide more specifications that smartphone users are looking for and has the potential to be a direct competitor to the iPhone. Almost every network is coming out with an android phone. These include:
 * Verizon Droid
 * T-Mobile Motorola Cliq
 * Sprint Samsung Moment
 * T-Mobile Samsung Behold II
 * Sprint HTC Hero
 * Dell Android phone for AT&T


 * Sources**

I recommend that we organize the post around __Verizon's Droid Phone and the Android Army__ by JR Raphael at PC world. We can then embed the new Verizon Droid TV ad into from his blog into our blog post:

http://www.youtube.com/watch?v=dPYM-XTqcec

Report proposal
TO: Proximity Mobile Team FROM: Erika Holt DATE: November 25, 2008 SUBJECT: Proposal for report on smart phone use for corporations

Businesses use smart phones on a daily basis to communicate with their employees locally and abroad. There are particular steps a business person must take in order to use their cell phone abroad. I propose to write a report explaining these processes and how Google Android has the ability to make this process easier.


 * Need**

Businesses must be prepared to do one or more of the following before using their cell phone abroad.

· Have cell phones that are GSM compatible · Switch to an international plan · Incur extra costs for international calling · “Unlock” their phone to use international SIM cards

Cell phone providers are starting to make their phones more user friendly for businesses. Google Android, for example, uses its open source operating system to give businesses the ability to customize the phone to the business they are doing, possibly making it easier to use abroad.

Clients of Proximity who wish to target Gen-Y consumers and businesses need this report to understand the process that they must go through to use their cell phones abroad and how Google Android will make this process faster and easier.


 * Topics**

The proposed report, “Making International Cell Phone Use Easier for Businesses,” will cover the following topics:

· How the European GSM system is different from the U.S. CDMA system; · What a SIM card is and how to “unlock” it for international use; · What the options are for international calling and data; · How Google Android and GoogleVoice can solve the international calling problem.

The report will also include attachments which demonstrate different international cell phone costs and options.


 * Sources**

The following items are key sources for the report. I still have to find the attachments of international cell phone costs and options.

Costello, C. (2009.) //International Cell Phone Guide.// IndependentTraveler.com. Retrieved November 18, 2009 from [] This is a guide to using an international cell phone. It gives the user alternatives to using something different from their personal cell phone abroad. It gives the pros and cons of each alternative and allows the consumer to pick the best choice for them.

CNET’s Quick Guide: World Phones. (2009.) //Finding a global phone.// CNET Reviews. Retrieved on November 19, 2009 from [] This blog from CNET talks about the different aspects you want to consider before buying a global phone. It also lists some of the extra costs you will incur by using your international cell phone abroad.

Google Mobile Blog. (2009.) //Google Voice for Android and BlackBerry.// Retrieved November 19, 2009 from [] This blog is from Google and it explains what Google Voice is and how it works. It also explains how this feature is beneficial for businesses and international cell phone users. It explains how it will decrease the cost to talk internationally and how it will make having a business phone and personal phone easier without missing a beat.

The Travel Insider. (2009.) //GSM Cell Phone Unlocking FAQ Information and Answers.// Retrieved November 18, 2009 from [] This blog from the Travel Insider explains the basics of international cell phone use. It describes the difference between the GSM and CDMA systems, what a SIM card is, how to unlock your cell phone, and how to know if your phone will work internationally.

Trupohone. (2009.) //Truphone Launches All-New Version of Android App.// Retrieved November 19, 2009 from [] Truphone created an application for Android that allows customers to make GSM calls that go directly to the Truphone gateway which allows them to take advantage of the low international rates through Truphone. This application also allows users to call Skype and Google Talk and to easily instant message their friends and co-workers across networks. They also give a background of the company and what Truphone is.

Wikipedia The Free Encyclopedia. (2009.) //Android (operating system).// Retrieved November 19, 2009 from [] This is an overview of the Google Android operating system. It describes what it is, its history, its features, the hardware products that are running Android, and its software development.

Team conference presentation proposal
//-//The corporate aspects of Android- how they can make it easier for business people to use their phones abroad -How Google is using the European style of networks with the open source operating system- different competition -How Android has the posibility to change the entire competitive aspect of the mobile market

Sales letter and report prospectus
December 7, 2009 Mr. Kevin Sharpe, Director of Sales and Marketing 780 Elkridge Landing Rd # 101B Linthicum Heights, MD 21090-2922 Dear Kevin:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding CitiBank’s need to be more efficient when communicating abroad with employees and clients. Enclosed you will find a prospectus for the report I mentioned describing the complications of using cell phones abroad and how to make it easier and more cost effective.

As you noted yesterday, CitiBank feels that it must establish brand identity with Gen Y and businesses now in order to sell its products. I believe Proximity can work with you to devise a comprehensive campaign that uses mobile media and advertising to achieve that goal.

We can provide you with customized survey and focus group results to help shape CitiBank’s image as a progressive, green company. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y and businesses that operate in an international market. In addition, we have trained student marketers who can promote CitiBank on social networks such as Facebook. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on CitiBank’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Erika Holt Associate Media Analyst

enclosure


 * About Proximity**

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns.