Legere and T-Mobile USA: An Interesting Combo

By Doug Mohney September 19, 2012

The selection of former Global Crossing CEO John Legere to head up T-Mobile USA is a fascinating choice. Legere, a 32 year veteran of the telecommunications and technology industry, will assume the helm of T-Mobile on September 22. What he does in the next 12 months will bear a close watch.

Legere takes over a business unit that Deutsche Telekom (DT) wanted to unload to AT&T. U.S. regulators nixed a T-Mobile/AT&T merger, leaving DT with a still-declining business unit but one with a $3 billion cash injection plus $1 billion in new spectrum due to breakup conditions if the deal didn't go through. 


Image via www.tmobile.com

T-Mobile USA lost 1.65 million customers last year, with the last two quarters of 2012 not looking much better with a drop of 205,000 million in the second quarter.   The fourth-place U.S. wireless carrier is betting on a $4 billion LTE rollout to keep and attract subscribers, with network service to start in 2013.

Enter Legere, the former CEO of Global Crossing. With stints at AT&T and New England Telephone on his resume, Legere certainly knows the telecom business on the wholesale and enterprise sectors.  He's also was a senior VP at Dell Computer, so he has depth in the consumer and retail fields as well.

Global Crossing's story also lends itself well some of the other reason why Legere was brought into T-Mobile USA. Legere became head of Global Crossing shortly before the dot.com bubble turned into dot.bomb, with the company looking for a buyer and going through a Chapter 11 bankruptcy. After cleaning up the books, Global Crossing ultimately ended up purchased by Level 3.

Map Legere's resume to T-Mobile USA and you have experience in mergers, deployment of new technology, and running a company with issues (financial, organizational) and fixing them. Add in his international experience when he arrived from Asia Global Crossing to Global Crossing, and Legere should have a solid working relationship with the home office in Germany.

Perhaps the only "hole" in his resume is that his more recent career has been focused on the telecommunications wholesale and larger enterprise sectors with an emphasis on multi-national opportunities. T-Mobile USA has to stem customer churn, get its LTE build accomplished without hiccups, and maybe engineer a merger with another U.S. cellular carrier to get it out of DT's portfolio. While a Sprint/T-Mobile USA combination seems unlikely given the current regulatory mood, it is possible T-Mobile USA could pick up a smaller carrier for more licensed spectrum -- the most precious asset of the wireless world -- and market share. Clearwire, Leap Wireless and MetroPCS all might be potential merger candidates down the road.




Edited by Brooke Neuman

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Apple Goes Social with Video Editing App

By: Alicia Young    8/26/2016

The goal is to offer simple video editing with tools that appeal to millennials and upcoming generations-the people who grew up surrounded by social m…

Read More

How Do the Year's Threat Predictions Match Reality?

By: Special Guest    8/24/2016

Last year, Fortinet's FortiGuard Labs global threat research team made a series of predictions about cyber threats in 2016. We are now halfway through…

Read More

Automakers Invest in Wearable Tech Pilot Programs

By: Lindsey Patterson    8/24/2016

The advent of wearable technology has recently generated a number of creative products. Consumers check for email messages using "smart" watches and i…

Read More

AI's Major Role in EU's New Data Privacy Regulations

By: Special Guest    8/23/2016

Earlier this year, the European Union passed the General Data Protection Regulation - landmark legislation addressing data protection and privacy conc…

Read More

Broadband Delivered by Fiber Proves Better than Alternatives

By: Doug Mohney    8/23/2016

We're a couple years out on an unprecedented boom in broadband, with new wireless schemes, 5G, high-flying drones and constellations of satellites cov…

Read More