T-Mobile MD defends criticisms of inconsistency

T-Mobile MD defends criticisms of inconsistency

T-Mobile managing director Jim Hyde outlined his optimism for the company in the current market as the ‘best value operator with the best service’, despite criticisms of inconsistent levels of activity.

Criticisms have been leveled at T-Mobile for failing to maintain momentum in its customer drive, with ‘schizophrenic bursts’ of activity even with strong consumer propositions.

Hyde denied that the parent company in Bonn was pulling in profits from the UK to fund a recovery for its domestic German business. Hyde said: ‘My business is just like our competitors: we are part of a group. The contribution we make to the group is indicative of our scale.

 ‘It [customer acquisition appetite] is absolutely dialed up and down depending on our financial [circumstances]. That is just something that governs all businesses.’

He stressed that, although T-Mobile’s appetite in the market for new customers may vary, it would not be something that customers see. Deals will remain consistent even though T-Mobile will possibly reduce its promotional activity at times.

He added: ‘We won’t let it affect our customers. We’ve got a ton of resources as a group. What is important for us is to remain competitive, think of the customer and look to scale our business.’

Amid the current market instability, Hyde said his original expectations of 5% growth in the industry next year would be closer to ‘3%, or less’.

T-Mobile’s recent Q3 results reveal a relatively poor performance with revenues falling just under 7% to £794m and profit tumbling almost 30% in the same period over one year.

Hyde said: ‘It has to do with how we exited 2007 after putting a bunch of growth in last year. We delivered a performance second to none year-on-year at the time.

‘2008 has been slower. Our competitors are now on a slightly different track.’

Separately, Hyde said he would use prepay as a vehicle to bring new products and services to a mass market, but added: ‘The important thing is to avoid the pitfalls from being in that business. That means avoiding the box breaking and organised crime sometimes associated with it. And we’re continuing to
out-run them.’

Written by Mobile Today
Mobile Today

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