T-Mobile Gets Serious About Mobile Commerce

| Feb 16, 2011 | Consumer Services U.S. | Analyst: Deepa Karthikeyan

Click here

Event Summary

February 15, 2011 - Deutsche Telekom, parent of T-Mobile USA, announced plans to roll out a mobile payment solution called Mobile Wallet using NFC technology in multiple countries in 2011-2012, including the U.S. T-Mobile USA will roll out NFC starting in 2012, through its previously-announced ISIS joint venture with AT&T and Verizon. The company expects mobile payments replacing cash to be the most popular use for NFC technology, followed by mobile ticketing for services such as public transportation. T-Mobile's Mobile Wallet will also support loyalty programs, such as supermarket discount cards, and sport multiple security features.

Quick Take

Analytical Summary

• Current Perspective: Positive on T-Mobile’s announcement that it will offer users its NFC-based Mobile Wallet solution next year, as the heightened buzz around mobile commerce partly due to the success mobile sites such as Amazon and eBay have experienced this past holiday season makes it a well timed launch. The announcement reaffirms T-Mobile’s ISIS initiative - a nationwide mobile commerce network utilizing smartphone NFC technology in partnership with AT&T and Verizon Wireless that was made public late last year, offering users a more concrete timeline on its execution. It also presents the carrier with a range of opportunities to strengthen customer relationships and enhance loyalty and stickiness as well as increase its marketing related revenue.

• Vendor Importance: High to T-Mobile as the launch of a mobile commerce solution using NFC technology should increase its appeal among tech savvy users who rely on their phones for most of their daily activities. A successful launch with well known merchant and financial institution partners will enable the carrier to experience an uptick in smartphone and related mandatory data plan sales on top of increased advertising revenue.

• Market Impact: Moderate on the US service market, because T-Mobile is essentially coming out with similar launch plans to those of competitors AT&T and Verizon Wireless (via the ISIS initiative set to launch in 2012) while Sprint is already looking into mobile wallet solutions of its own. While all major players are moving in on the mobile payments space at the same time, the fact remains that the field is still nascent and wide open, with no carrier having yet taken a definitive lead in deployment or business modelling.

CLIENTS ONLY

Current Perspective

Competitive Strengths and Weaknesses

| Client access - Full report in Consumer Services Europe | More information

Top

Top