Summary: Deutsche Telecom AG's (DT) T-Mobile is moving quickly to make use of its new $4 billion worth of radio frequencies purchased from the FCC's recent spectrum auction. It reportedly plans to roll out a dual-mode phone that offers smooth transition between traditional cellular and Wi-Fi networks, also effectively serving as a land-line substitute. And it might be considering offering the industry's first VoIP service. People familiar with the matter say T-Mobile will phase out the use of its celebrity pitchwoman Catherine Zeta Jones in advertising. T-Mobile is the 4th largest cellular carrier in the U.S. with 23 million subscribers, behind Cingular Wireless, a joint venture of AT&T (NYSE:T) and BellSouth (BLS); Verizon Wireless, a JV of Verizon Comm. (NYSE:VZ) and Vodafone (NASDAQ:VOD); and Sprint Nextel (NYSE:S). Its biggest competitor could be Sprint, which has a partnership with leading cable providers Comcast (NASDAQ:CMCSA) and Time Warner's (NYSE:TWX) cable company, and also plans a WiMax network by 2008.
Related links: Full WSJ article > • T-Mobile Comes Out On Top In FCC Spectrum License Auction • Bidding Up the Spectrum Auction - Is Comcast Looking to Go Wireless? • Outside of Wireless, Everything is a Commodity • WiFi Phones Don't Threaten The Big Carriers • Sprint and Time Warner's Quadruple Play • Conference call transcripts: Deutsche Telekom HY06 • AT&T Q206 • BellSouth Q206 • Comcast Q206 • Sprint Nextel Q206 • Verizon Comm Q206
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