Quick Note: T-Mobile USA CEO Resigns Amid Abysmal U.S. Performance
June 27, 2012 4:34 PM
comment(s) - last by
(Source: T-Mobile USA)
COO will step in while company searches for a new chief
It's been half a year since T-Mobile USA (a Deutsche Telekom AG (
)) saw a
to AT&T, Inc. (
), America's second largest network,
. As America's fourth largest network, T-Mobile USA is today still independent, but it continues to
bleed customers and lose money
All Thing D
has reported that CEO Phillip Humm has become a casualty of that failure, resigning effective immediately. He will not be transfered to Deutsche Telekom as some past T-Mobile USA executive dropouts have been.
There does not appear to be any other extenuating circumstances that lead to his departure except, perhaps, that Mr. Humm's family was stuck in Europe, which surely created some personal hardship.
In a statement the company writes, "Philipp Humm has given the company some important initiatives over the past years: Under his leadership the cost situation at T-Mobile USA has vastly improved and he led the company during a difficult phase regarding the planned merger with AT&T."
The CEO had led the Deutsche Telekom subsidiary since November 2010, but had made little progress in stemming the tide of its losses.
CEO Phillip Humm is "peacing out" of T-Mobile. [Image Source: Bloomberg]
T-Mobile has been
stepping up its HSPA+ efforts
, but this "3.5G" tech has struggled to compete against the bleeding edge at AT&T and
Verizon Wireless -- a joint venture between Verizon C
ommunications Inc. (
) and Vodafone Group Plc. (
) -- both of whom have deployed "4G" LTE.
Jim Alling, T-Mobile USA's current COO, will step in to jointly act as interim CEO, while a search for a new chief is conducted. Whoever lucks into that job has a tough job ahead in fixing up the struggling carrier.
All Things D
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6/27/2012 9:44:36 PM
Well they were several years too late to the game. Had sprint given Apple their terms back when Apple was first looking for a carrier they would be in a completely different position.
The other huge mistake sprint made was betting on WiMax which was a lesser technology than LTE with the goal of beating it to market. When they failed to do that they had to swallow their pride, eat a ton of wasted money, and start rolling out LTE late.
And while we are on the topic, the Nextel merger didn't make sense for Sprint either. Push to talk + iDEN didn't fit into their mold. I think pretty much every tech journalist correctly called that as a stupid move at the time it happened so I have to wonder WTF the sprint execs were thinking.
The execs at sprint are making millions of dollars piloting the company straight into the ground. techie/engineer types don't have all the answers but it appears from the outside like Sprint is ignoring their input at its own peril.
Sprint is down 85% since 2007.
6/28/2012 10:55:59 AM
Yeah, it all went downhill with the nextel purchase. I don't know what sprint was thinking. They thought they would get all those business accounts and they did but by destroying the nextel brand, they also destroyed the primary marketing vehicle for push to talk gsm phones. Under the sprint banner, the push to talk product was no longer visible to customers.
7/2/2012 6:38:52 AM
I have to disagree most strongly. Spints' downturn started in 2004 when they made customer service policy changes, which made it very difficult to solve problems. Every carrier has problems. But how it chooses to help it's customer base solve those problems is what defines it in the long term. They have to strike a balance, and Sprint lost theirs long ago.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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