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T-Mobile Is the New Mobile Network Champ. I Got a Behind-the-Scenes View Into How It Got There

In an exclusive chat with T-Mobile executives before the announcement, I learned which moves took the carrier from No. 4 to the top.

Last week T-Mobile announced that it’s been named the Best Mobile Network in the US by Ookla, marking the first time the carrier has taken the overall top spot. That’s based on half a billion real-world usage tests conducted over a six-month period.

(Disclosure: Ookla is owned by the same parent company as CNET, Ziff Davis.)

During a live event at its Tech Experience Hub in Bellevue, Washington, T-Mobile also announced a July 23 commercial launch date for T-Satellite, its Starlink-based satellite connectivity service, as well as additional features, such as support for sending images and audio files. And to boost the array of perks that accompany many T-Mobile plans, it’s adding free DoorDash DashPass memberships for subscribers with Magenta status.

«We made big bets on 5G, pushing the limits to deliver speed and coverage no one thought possible,» said T-Mobile CEO Mike Sievert. «Now, as the Best Mobile Network in America, with unmatched satellite-to-mobile capability, it’s clear we’re shaping the future of wireless with a network built not just for speed, but for possibility.»

In less than a decade, T-Mobile has gone from a limited-spectrum upstart with a penchant for bright pink branding to the top of the competitive US mobile industry, largely due to the way it’s navigated the transition to 5G networking (and maybe some help from the magenta colors). Merging T-Mobile’s low-band spectrum with Sprint’s midband became one of the main reasons T-Mobile is now crowing about its spot in Ookla’s rankings.

As part of these announcements, T-Mobile invited CNET to an exclusive behind-the-scenes conversation about how it arrived at this point, and a tour of some of the technologies at work at its headquarters and labs.

An unconventional road to 5G

Every company says it’s the best at something, and for a long time, T-Mobile claimed it was the best value among the major wireless carriers. «US consumers have always had to make a choice between going to a much higher priced but higher quality network, or make a trade-off in network and get a better value,» said Mike Katz, T-Mobile president of marketing, strategy and products. «Now it’s validated by a third party [that] customers don’t have to make this choice. They can get both the best value, which T Mobile has always been known and famous for, and get the best network.»

But how did T-Mobile get to this point? It’s easy to say you have the best value and that customers love you, but those are results. At this scale — being one of the top three providers in the US competing for an essential market — it takes a series of technical decisions, a vision of how technology will evolve and the willingness to take big risks.

From a consumer point of view, a few years ago, the focus of every carrier seemed to be to expand coverage, especially 5G coverage. Specifics got lost in the 5G marketing shuffle — every phone-maker touted its 5G compatibility, and the carriers wanted everyone to know that they were expanding their 5G footprint as fast as possible.

But wireless coverage isn’t like a blanket that covers everything equally, and 5G in particular is made up of several speeds and flavors. That’s why your 5G-enabled phone will sometimes indicate the network as «5G,» «5G+,» «5G UC» or other variations, depending on your carrier.

When 5G technologies began to appear in 2020, one focus was on the high speeds possible using the millimeter wave spectrum. But, although millimeter wave can deliver swift connections, it can be thwarted by obstacles such as windows or even plants.

«Primarily, [5G] was going to be a millimeter wave play, which is very high bandwidth with very poor reach,» said Ulf Ewaldsson, T-Mobile’s president of technology. «We went all-in on a very different strategy. We said, ‘it’s going to be a midband play, and it’s going to be TDD [Time Division Duplex, a way to send and receive data in the same frequency] spectrum in the midband that you pair with a very strong low band.’ We were able to get our hands on the best possible spectrum, thanks to merging with Sprint.»

Ewaldsson emphasized that it’s not just a prevalence of low-band that’s advantageous. It’s that, at 600 megahertz, T-Mobile has the lowest band in the low-band area. Why is that important? It has better reach, about 25% to 30% wider than the competition.

That Sprint merger in 2020 sounded like a quick way to buy into the top of the market, a shortcut to expand one’s footprint. (Indeed, T-Mobile is taking a similar tack right now in the broadband market by acquiring fiber provider Lumos in April). But buying Sprint wasn’t an immediate ticket to the top.

«It took about a year extra to get through all the regulatory approvals to get this thing done,» Ewaldsson said, noting that AT&T’s and Verizon’s lead in the market made it a challenge for T-Mobile or Sprint alone to actually enter the 5G race. But with a plan in place to use Sprint’s spectrum and infrastructure, «once we came out [of the approval process], we were right out of the blocks,» he said.

Katz explained that many of T-Mobile’s early disadvantages have turned into benefits. «We have more towers than anybody else, and our towers are closer together,» he said. «We had to build more towers than AT&T and Verizon. We didn’t have any low-band spectrum, which propagates better. So we had to build more towers that were closer together.»

Ewaldsson was more specific. «We have about [and here he paused briefly] 82,715 towers,» he said. «Now, as a turn of events, that happened to be the best possible asset when we merged with Sprint, because we could power up all those towers with that TDD spectrum … and create a formidable downlink speed experience.»

The benefits of the standalone core

Merging T-Mobile’s low-band spectrum with Sprint’s midband became one of the main reasons T-Mobile is now crowing about its spot in Ookla’s rankings.

«We have [a] secret that nobody else has, which is a standalone core. A standalone core is a smarter control over all those towers that stand alone,» Ewaldsson said. «Core allows us to combine low-band and midband and all our bands to get higher and faster experiences for our customers.»

He explained that building out the network more consistently is something other carriers haven’t done. Every T-Mobile tower has nearly the same tri-band configuration.

«You have the same speeds, latency and performance on your apps, wherever you are, and that’s also a secret sauce, too,» he said.

The standalone core enables T-Mobile’s next wave of wireless advancements. In April, the company announced that it had rolled out and successfully tested — with consumer handsets — 5G-Advanced networking, achieving uplink speeds of 550 Mbps. It did so by combining multiple spectrums in a technique called carrier aggregation, which is enabled by the standalone core hardware.

This technology also enables network slicing, a technique T-Mobile has been using commercially for the last two years to guarantee network performance for a specific range of devices, even in crowded or noisy wireless environments. First responders, for example, can be assured they can communicate, even in an emergency environment where other people are all accessing the network.

«You can have a number of different frequencies supporting one single device, one mobile phone,» said Ewaldsson. «If you combine all those resources [into] one device, you can get an incredible bandwidth for a short time, and you can get done with what needs to be done faster. So it creates a better customer experience, because you have an enormous bandwidth that is allocated toward one device, instead of sharing it in one frequency with a bunch of devices.»

How Ookla named T-Mobile the Best Mobile Network in the US

«We’ve known for a long time that the 5G portion of our network is the best,» said Katz, «but this [test] concluded that T-Mobile had the best network. And obviously, we’re very excited about that.»

Both Katz and Ewaldsson emphasized that Ookla’s testing was larger and more comprehensive than earlier metrics. It was performed on over 6 million devices and 500 million test points over a six-month period.

Ewaldsson said it’s an active test, collecting data when customers run the SpeedTest app on their phones, «but it’s also a passive test where, in the background, they’re pulling data from millions of different handsets that are in the hands of real consumers, wherever they are.»

He contrasted that with drive testing, an accepted methodology in which a tester drives routes with a collection of representative phones to prove that a network is good. «We don’t believe in that,» said Ewaldsson. «We believe that if you really want to test this, you’re going to crowdsource it, and that’s exactly what this test has done… and it’s a third-party test.»

The benefit to this approach is that it more closely captures real mobile usage, according to Ewaldsson, such as people texting and sending email, viewing social apps, watching video clips, playing games and more. Millions of people are also operating under real-world conditions, which can include factors such as pockets of interference or scarcity. Verizon disputes Ookla’s methodology, saying that drive testing is a more accurate way to measure network performance.

Getting to this point hasn’t been a glide path for T-Mobile, and it still faces turbulence. Just in the past few months, T-Mobile has raised prices on many of its legacy plans (and then turned around and gave out free lines to some). It has also switched all of its current plans to a model that does not include taxes and fees, some of which incrementally increased this spring. Until this year, the main unlimited data plans incorporated taxes and fees into the monthly cost.

T-Satellite goes online in July with more features

T-Mobile’s wireless performance is not the only thing looking skyward. The T-Satellite service, which enables texting from most smartphones via the network of over 620 Starlink satellites when out of range of cellular or Wi-Fi networks, will leave beta status on July 23 and be open to anyone. Pricing for the service will be $10 a month, except for customers on the Experience Beyond and Go5G Next plan, which includes T-Satellite as part of the package.

That price will apply even if you’re a customer of a competing service like AT&T or Verizon; T-Satellite can be activated as a second eSIM on supported devices. Katz said there are currently over 1.8 million customers in the beta program, including tens of thousands of competitors’ customers.

He also pointed out that during the beta, three times more messages were received than sent. «If you can’t receive an incoming message because you haven’t manually connected your phone, you’re not really reachable and, in my opinion, you’re not really connected,» he said, referring to the way competitors’ phones initiate a satellite link.

The T-Satellite service will include 911 emergency texting later this year, which will be available to any mobile subscriber, even if they haven’t signed up for T-Satellite service (provided their devices can make the connection).

«We just think that with a technology like this, no customer should ever be in a situation where they are unconnected in an emergency,» said Katz.

That’s not the last of the satellite news, though. T-Satellite will enable MMS messaging to send pictures and short audio clips via satellite on Android phones, with iOS support coming later. In a demonstration I witnessed at T-Mobile’s 5G Hub, sending an image, text and requisite burst of emojis wasn’t exactly speedy, but they arrived within 30 to 90 seconds.

Building on that, T-Mobile will bring data service to T-Satellite starting Oct. 1. Considering how satellite bandwidth is constrained, T-Mobile is working with operating system providers to implement an API that developers can use to allow reasonable data access in their apps over the satellite connection. Don’t expect to stream Netflix while you’re camping in the wilderness, but apps such as All Trails will be able to fetch updated information.

«This will be the first time you’ve seen a direct-to-cell satellite network support data services,» said Katz. «We’ve worked with many different app developers to help them build their apps to recognize that they’re connected to satellite and optimize for satellite data.»

DoorDash deliveries without all the fees

When it comes to mobile plan perks, T-Mobile has found success with its Magenta Status goodies, which range from everyday discounts on stays at Hilton hotels to T-Mobile Tuesdays, which offer deals such as a recent Wingstop promotion (during which many of the restaurant’s locations ran out of chicken nationwide). Katz said the company has seen 1.2 billion redemptions of T-Mobile Tuesdays offers.

On July 8, Magenta Status is gaining a new perk: T-Mobile is partnering with DoorDash to give customers on the most popular plans DashPass service free for a year. Eligible customers can claim the offer through Aug. 4 via T-Mobile Tuesdays in the T-Life app. 

«I think DoorDash did something like 2 billion deliveries last year, and the average price of a delivery is $3 to $4,» said Katz. «If you have DashPass, you don’t pay delivery fees at all. This can save our customers hundreds and hundreds of dollars.»

Incentives to switch and T-Mobile’s future

Eager to entice customers of the major competing services, T-Mobile is launching the Easy Upgrade program that makes it «screamingly simple,» in Katz’s words, to switch to T-Mobile. He specifically mentioned Verizon customers «who signed up with Verizon because they believed, and for years it was true, that Verizon had the best network,» he said. «And now that we’re in a place where it’s definitively clear that T-Mobile has the best network, we want to make it really easy for Verizon customers to come and join the Un-carrier.»

Katz said T-Mobile will pay off every cost to switch, including the remaining cost of devices up to $800, and give customers a new Apple or Android device without requiring a trade-in (be sure to read the details of these deals).

T-Mobile’s ascent to the top of Ookla’s list shows that, even though the mobile market in the US is dominated by just a few large players, the field is in flux. AT&T and Verizon continue to build out their own networks and strategies — Verizon has teased a «Project 624» that is rumored to be revealed on June 24, for instance. Now that T-Mobile has established this lead, I’m eager to see how it plans to hold onto it.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

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Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

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Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know

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