Case Study: T-mobile UN-CARRIER

1. UNDERSTAND TODAY. SHAPE TOMORROW. 1 Customer Value Canvas Case Study T-MOBILE   UN-CARRIER

2. UNDERSTAND TODAY. SHAPE TOMORROW. 2 INTRO- DUCTION. T-Mobile in the US has proven to be a daring game changer in the telco industry. In our opinion, the brand’s successful turn around is due to a fully integrated approach to developing customer value. This case study outlines the Un-Carrier Customer Value Proposition of T-mobile US and maps it in the LHBS Customer Value Canvas - a tool we use to develop integrated customer value offers. We believe that the transformation of the customer value that T-mobile provides to its customers in the US, is a benchmark for successful customer centricity. Mobile providers and other businesses should take a close look at Customer Value Canvas of T-mobile US and review the holistic approach and specific tactics they use to challenge conventions. LHBS // T-MOBILE UN-CARRIER LHBS is a marketing & innovation firm with offices in Berlin & Copenhagen. We work with legacy organizations to adapt their customer value proposition to meet emerging customer needs and expectations. Together with our clients we discover purposeful business opportunities and deliver integrated customer offers for products, services, experiences and communication. http://www.lhbs.com INTRODUCTION Stefan Erschwendner Managing Partner at LHBS se@lhbs.com

3. Customer Value Canvas CORE PRODUCT How might your Customer Value Proposition inspire or impact the performance or quality of your product? ADDED VALUE SERVICES How might your Customer Value Proposition inspire or inﬂuence additional services to simplify or enhance that create added value around the consumption or usage of your product? COMMUNICATION & TOUCHPOINTS How might you create communication that   delivers your Customer Value Proposition and   not just promises it? Content instead people seek   out rather than avoid? SHOPPING EXPERIENCE How might your Customer Value Proposition inspire a smoother, more pleasant customer experience in your omnichannel touch points. CUSTOMER VALUE PROPOSITION A clear, concise and compelling articulation of how the needs that are important to the customer are satisﬁed by the company. Designed for: Designed by: Date: Version: This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

4. 4UNDERSTAND TODAY. SHAPE TOMORROW. T-MOBILE US LHBS // T-MOBILE UN-CARRIER

5. UNDERSTAND TODAY. SHAPE TOMORROW. 5 T-MOBILE US IN 2012 NO LTE NO iPHONE AT&T BREAK UP NO DIFFERENTIATION LHBS // T-MOBILE UN-CARRIER ABOUT

6. 6UNDERSTAND TODAY. SHAPE TOMORROW. UN-CARRIER LHBS // T-MOBILE UN-CARRIER

7. UNDERSTAND TODAY. SHAPE TOMORROW. 7 LHBS // T-MOBILE UN-CARRIER ABOUT

8. UNDERSTAND TODAY. SHAPE TOMORROW. 8 “The most dangerous man in wireless” CNN, 2013 LHBS // T-MOBILE UN-CARRIER ABOUT

9. 9UNDERSTAND TODAY. SHAPE TOMORROW. WHAT DOES UN-CARRIER STAND FOR? LHBS // T-MOBILE UN-CARRIER

10. UNDERSTAND TODAY. SHAPE TOMORROW. 10 A stupid, broken, arrogant industry. Don’t play by the rules. Break them. LHBS // T-MOBILE UN-CARRIER ABOUT

11. UNDERSTAND TODAY. SHAPE TOMORROW. 11 STRATEGIC PRINCIPLES SIMPLICITY VALUEFAIRNESS LHBS // T-MOBILE UN-CARRIER ABOUT

12. 12UNDERSTAND TODAY. SHAPE TOMORROW. UN-CARRIER TIMELINE (until August 2016) LHBS // T-MOBILE UN-CARRIER

13. 13UNDERSTAND TODAY. SHAPE TOMORROW.Source: http://investor.t-mobile.com/Cache/1500084635.PDF? LHBS // T-MOBILE UN-CARRIER TIMELINE UN-CARRIERMOVES Un-carrier1.0 Un-carrier2.0 Un-carrier3.0Pt.1&2 Un-carrier4.0 Un-carrier5.0&6.0 PUTANEND TOANNUAL CONTRACTS MADETHE WORLDYOUR NETWORK– NO EXTRACHARGE T-MOBILE TESTDRIVE INTRODUCED CONTRACT FREEDOM INTRODUCED JUMP!MARCH2013 JULY2013 OCT.2013 JAN.2014 JUNE2014 UNLEASHED TABLETSWITH FREEDATA FORLIFE MUSIC FREEDOM Un-carrier7.0 WI-FI UNLEASHED SEPT.2014 Un-carrier8.0 INTRODUCED DATASTASH DEC.2014 Un-carrier9.0 UN-CARRIER FORBUSINESS MAR.2015 UN-CONTRACT CARRIER FREEDOM UN-CARRIER MOVES Un-carrier1.0 Un-carrier2.0 Un-carrier3.0Pt.1&2 Un-carrier4.0 Un-carrier5.0&6.0 PUTAN END TOANNUAL CONTRACTS MADETHE WORLDYOUR NETWORK– NO EXTRACHARGE T-MOBILE TESTDRIVE INTRODUCED CONTRACT FREEDOM INTRODUCED JUMP!MARCH2013 JULY2013 OCT.2013 JAN.2014 JUNE2014 UNLEASHED TABLETSWITH FREEDATA FORLIFE MUSIC FREEDOM Un-carrier7.0 WI-FI UNLEASHED SEPT.2014 Un-carrier8.0 INTRODUCED DATASTASH DEC.2014 Un-carrier9.0 UN-CARRIER FORBUSINESS MAR.2015 UN-CONTRACT CARRIER FREEDOM JUNE 2015 NOV. 2015 UncarrierAmped UncarrierX JUMP! ON DEMAND BINGE ON JUNE 2016 Uncarrier11 T-MOBILE TUESDAYS AUGUST 2016 Uncarrier12 T-MOBILE ONE UN-CARRIERMOVES Un-carrier1.0 Un-carrier2.0 Un-carrier3.0Pt.1&2 Un-carrier4.0 Un-carrier5.0&6.0 PUTANEND TOANNUAL CONTRACTS MADETHE WORLDYOUR NETWORK– NO EXTRACHARGE T-MOBILE TESTDRIVE INTRODUCED CONTRACT FREEDOM INTRODUCED JUMP!MARCH2013 JULY2013 OCT.2013 JAN.2014 JUNE2014 UNLEASHED TABLETSWITH FREEDATA FORLIFE MUSIC FREEDOM Un-carrier7.0 WI-FI UNLEASHED SEPT.2014 Un-carrier8.0 INTRODUCED DATASTASH DEC.2014 Un-carrier9.0 UN-CARRIER FORBUSINESS MAR.2015 UN-CONTRACT CARRIER FREEDOM

14. 14UNDERSTAND TODAY. SHAPE TOMORROW. UN-CARRIER INITIATIVES LHBS // T-MOBILE UN-CARRIER

15. UNDERSTAND TODAY. SHAPE TOMORROW. 15Source: Un-Carrier 1.0 MARCH 2013 END TO ANNUAL SERVICE CONTRACTS Consumers hate long-term service contracts, costly overages and complicated service plans. So T-Mobile got rid of them. The Simple Choice plan provides unlimited everything, without an annual service contract, with simple, straightforward pricing. T-MOBILE UNLEASHED iPHONE T-Mobile gave consumers what they want: a radically simple, affordable iPhone experience on a blazing- fast, truly reliable 4G nationwide network. Source: http://investor.t-mobile.com/Cache/1500059458.PDF LHBS // T-MOBILE UN-CARRIER INITIATIVES

16. UNDERSTAND TODAY. SHAPE TOMORROW. 16Source: Un-Carrier 2.0 JULY 2013 JUMP! Nobody wants to be stuck with an old phone. That’s why T-Mobile launched JUMP!, the best upgrade program on the market. It’s a groundbreaking approach to more frequent phone upgrades, putting an end to the upgrade runaround. Here's how Jump works: after an initial six-month waiting period, users can trade in their T-Mobile phone "in good working condition" (must have no water damage, an unbroken screen, and able to boot up) and purchase a new one for the same price as new customers to T-Mobile. Your old payment plan will be eliminated and you'll get charged a new one based on your new phone. In addition to using this to simply replace your phone if you're interested in an upgrade, Jump also includes a full insurance plan — coverage includes lost, stolen, or malfunctioning phones. Source: http://www.theverge.com/2013/7/10/4511160/t-mobile-announces-jump-two-phone- LHBS // T-MOBILE UN-CARRIER INITIATIVES

17. UNDERSTAND TODAY. SHAPE TOMORROW. 17Source: Un-Carrier 3.0 OCTOBER 2013 MADE THE WORLD YOUR NETWORK — AT NO EXTRA CHARGE Everyone should be free to travel without sky-high international roaming fees. T-Mobile customers get unlimited data in 120+ countries and destinations at no extra charge. And here in the U.S., T-Mobile announced it had delivered nationwide 4G LTE covering more than 200 million people in 233 metro areas coast to coast. UNLEASHED TABLETS WITH FREE DATA FOR LIFE T-Mobile revolutionized how customers buy and use tablets — with free data for life. Customers get 200 MB of free data every month with any tablet. T- Mobile also announced it would carry the iPadAir and iPad mini, beginning in November, starting at $0 down. Source: http://investor.t-mobile.com/Cache/1500059458.PDF LHBS // T-MOBILE UN-CARRIER INITIATIVES

18. UNDERSTAND TODAY. SHAPE TOMORROW. 18Source: Un-Carrier 4.0 JANUARY 2014 CONTRACT FREEDOM The last barrier to switch to T-Mobile comes down. “T-Mobile set consumers free from being locked into other carriers’ contracts. We will pay an entire family’s Early Termination Fees so they can come to the Un-Carrier.” NOW THE FASTEST 4G LTE IN THE NATION Millions of speed tests from real people using their own phones prove it: T-Mobile’s nationwide 4G LTE network is the fastest network in the nation. Source: https://newsroom.t-mobile.com/news/customer-data-proves-t-mobile-network-now- LHBS // T-MOBILE UN-CARRIER INITIATIVES

19. UNDERSTAND TODAY. SHAPE TOMORROW. 19Source: Un-Carrier 5.0 & 6.0 JUNE 2014 T-MOBILE TEST DRIVE Test Drive is a free service that allows anyone (current customers and non-customers) to request T-Mobile to ship them a free trial kit composing of an Apple iPhone 5S with a temporary phone number and a 7-day variant of the Simple Choice plan with unlimited talk, text, and high speed data (and 3GB of hotspot data). MUSIC FREEDOM T-Mobile signs a partnership with certain music services so that listening to music from smartphone, customers don't use up their monthly data allowances. Source: http://www.extremetech.com/electronics/184850-t-mobile-un-carrier-5-and-6-free- LHBS // T-MOBILE UN-CARRIER INITIATIVES

20. UNDERSTAND TODAY. SHAPE TOMORROW. 20Source: Un-Carrier 7.0 SEPTEMBER 2014 WIFI UNLEASHED T-Mobile unveils a plan to allows for WiFi calling. All of the new smartphones in T-Mobile stores have been Wi-Fi calling and texting capable, and all of T- Mobile customers have been able to get a Wi-Fi calling and texting capable smartphone if they didn’t already have one. To make it easier for customers to take advantage of these new capabilities, T-Mobile opened an exclusive enrolment window in JUMP!, the Un-Carrier’s revolutionary upgrade program, so customers could immediately upgrade to a new Wi-Fi calling ready smartphone. PERSONAL NETWORK T-Mobile released Personal CellSpot, a new device that enables everyone to put the capabilities of a personal T-Mobile tower in their house— creating a personal network that is strong across the whole house. Source: https://www.google.de/search?q=T-Mobile+unveils+a+plan+to+allows+for+WiFi LHBS // T-MOBILE UN-CARRIER INITIATIVES

21. UNDERSTAND TODAY. SHAPE TOMORROW. 21Source: Un-Carrier 8.0 DECEMBER 2014 INTRODUCED DATA STASH Data Stash allows customers to roll their unused 4G LTE data forward into the next month, to use for 12 months – up to 20GB, all at no extra charge. Source: http://www.t-mobile.com/offer/data-stash-data-roll.html LHBS // T-MOBILE UN-CARRIER INITIATIVES

22. UNDERSTAND TODAY. SHAPE TOMORROW. 22Source: Un-Carrier 9.0 MARCH 2015 UN-CONTRACT With the Un-contract, T-Mobile is putting an end to price uncertainty − and ﬂipping the very idea of the carrier contract on its head. Now, when you sign the contract, you get the freedom with the prices being guaranteed not to rise. CARRIER FREEDOM for Business Now, consumers and businesses feeling stuck with their carrier — can make the move to T-Mobile without worry. Customer simply ports their number to T-Mobile’s plan, trades in their smartphone or tablet and buys a new smartphone. They’ll get the trade-in value and a prepaid card with the balance of additional outstanding phone payments after the trade-in value when they submit the carrier’s bill to T-Mobile − up to $650 total per line on up to 10 total lines. Source: http://www.theglobeandmail.com/globe-investor/news-sources/?mid=bwire. LHBS // T-MOBILE UN-CARRIER INITIATIVES

23. UNDERSTAND TODAY. SHAPE TOMORROW. 23Source: Un-Carrier Amped! JUNE 2015 JUMP! ON DEMAND T-Mobile has amped up the Un-Carrier 2.0, its groundbreaking JUMP! program, and introduced the industry’s lowest monthly cost to get an iPhone 6 when trading-in the old smartphone. With T-Mobile’s new JUMP! On Demand™, one low monthly phone payment covers the cost of a new smartphone and gives the freedom to swap it for a new one absolutely anytime and at no extra cost. Source: https://newsroom.t-mobile.com/media-kits/jump-on-demand.htm LHBS // T-MOBILE UN-CARRIER INITIATIVES

24. UNDERSTAND TODAY. SHAPE TOMORROW. 24Source: Un-Carrier X NOVEMBER 2015 BINGE ON T-Mobile has announced “Binge On”— a video streaming service that doesn’t use the smartphone or tablet data. The “Binge On” service supports platforms like HBO, Netﬂix, Hulu and 24 other sites and allows for 4G streaming in DVD quality. Source: http://www.t-mobile.com/offer/free-music-streaming.html LHBS // T-MOBILE UN-CARRIER INITIATIVES

25. UNDERSTAND TODAY. SHAPE TOMORROW. 25Source: Un-Carrier 11 JUNE 2016 T-MOBILE TUESDAYS Un-Carrier 11, a history-making move dedicated exclusively to saying “thank you” to customers, offers T-Mobile customers ownership in the company, free stuff every week, and free in-ﬂight Wi-Fi. Starting on July 19 2016, T-Mobile has started giving all of its customers a year of unlimited data for the popular Pokémon Go app together with free Lyft rides up to $15 to get to a new PokéStop or Gym. Additionally, 250 selected people will win $100 in PokéCoins to spend in the app, and ﬁve lucky winners will recieve a free Pokémon Go monster "hunting" trip for them and one guest to anywhere in the US. Source: http://www.t-mobile.com/offer/free-music-streaming.html LHBS // T-MOBILE UN-CARRIER INITIATIVES

26. UNDERSTAND TODAY. SHAPE TOMORROW. 26Source: Un-Carrier 12 AUGUST 2016 T-MOBILE ONE Un-Carrier 12 is again challenging other carriers with the launch of its newest unlimited data plan. The new tariffs will charge $70 per month for the ﬁrst line, $50 for the second, and $20 for additional lines, valid for up to eight. These offer includes unlimited talk, texting and 4G LTE smartphone data. With this initiative T-Mobile is addressing another major pain point for wireless consumers. Un-Carrier 12 is questioning the usefulness of classical data plans and data buckets that competitors normally offer. Source: https://newsroom.t-mobile.com/news-and-blogs/rip-data-plans.htm LHBS // T-MOBILE UN-CARRIER INITIATIVES

27. 27UNDERSTAND TODAY. SHAPE TOMORROW. RESULTS LHBS // T-MOBILE UN-CARRIER

28. UNDERSTAND TODAY. SHAPE TOMORROW. 28Source: www.slideshare.net/DT_IR/7-tmus-dtcmd15-46307070 Added 22 million customers in the ﬁrst 2 years LHBS // T-MOBILE UN-CARRIER RESULTS

29. UNDERSTAND TODAY. SHAPE TOMORROW. 29 Deutsche Telekom raised its dividend by 10 per cent as it announced adjusted earnings that were ahead of its original guidance for 2015, amid strong growth in customer numbers in the US. Source: https://next.ft.com/content/01ffbe36-db92-11e5-9ba8-3abc1e7247e4 LHBS // T-MOBILE UN-CARRIER RESULTS

30. UNDERSTAND TODAY. SHAPE TOMORROW. 30Source: T-Mobile Investor Factbook Q2 2016 In the second quarter of 2016, T-Mobile added 1.9 million net customers, making it the 13th consecutive quarter with over 1 million net adds. LHBS // T-MOBILE UN-CARRIER RESULTS

31. UNDERSTAND TODAY. SHAPE TOMORROW. 31 Bringing T-Mobiles total customer count to 67.4 million and making it the fastest growing wireless company in America. LHBS // T-MOBILE UN-CARRIER RESULTS Source: T-Mobile Investor Factbook Q2 2016

32. UNDERSTAND TODAY. SHAPE TOMORROW. 32 $9.2 billion in total revenues could be generated in the second quarter of 2016, an increase of 12.8% YoY, with a net proﬁt of $225 million. LHBS // T-MOBILE UN-CARRIER RESULTS Source: T-Mobile Investor Factbook Q2 2016

33. UNDERSTAND TODAY. SHAPE TOMORROW. 33 12.1% growth in service revenue and 36% growth in Adjusted EBITDA year-over-year LHBS // T-MOBILE UN-CARRIER RESULTS Source: T-Mobile Investor Factbook Q2 2016

34. 34UNDERSTAND TODAY. SHAPE TOMORROW. SUMMARY LHBS // T-MOBILE UN-CARRIER

35. UNDERSTAND TODAY. SHAPE TOMORROW. 35 A HOLISTIC APPROACH TO PROVIDE CUSTOMER VALUE The Un-Carrier initiative of T-mobile US goes far beyond a traditional rebranding. The company transformed their customer value proposition and translated it in to concrete offers. At LHBS, we use Customer Value Canvas to identify and develop Customer Value Propositions and its implications for product, service, experience and communication. We experienced that this holistic approach helps our clients to deﬁne and create value for their customers. The following model illustrates how T-mobile deﬁned their Un- Carrier Customer Value Proposition and translated it into actions for products, services, experiences and communication. SUMMARYLHBS // T-MOBILE UN-CARRIER

36. UN-CARRIER CUSTOMER VALUE CANVAS LHBS // T-MOBILE UN-CARRIER

37. Customer Value Canvas CORE PRODUCT How might your Customer Value Proposition inspire or impact the performance or quality of your product? ADDED VALUE SERVICE How might your Customer Value Proposition inspire or inﬂuence additional services to simplify or enhance that create added value around the consumption or usage of your product? COMMUNICATION & TOUCHPOINTS How might you create communication that delivers your Customer Value Proposition and not just promises it? Content instead people seek out rather than avoid? SHOPPING EXPERIENCE How might your Customer Value Proposition inspire a smoother, more pleasant customer experience in your omnichannel touch points. CUSTOMER VALUE PROPOSITION A clear, concise and compelling articulation of how the needs that are important to the customer are satisﬁed by the company. T-mobile US LHBS Berlin 10/16 V 1.0 Designed for: Designed by: Date: Version: This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. - Data Stash - Personal Network - No Contract - “Simple Choice” - Free Global Roaming - Binge On - Fastest LTE - Music Freedom - T-Mobile ONE - CEO as essential part of communication - Apple like events for launches - Black/White/Magenta visual look - Strong product focus / less metaphors in advertising - Humor and irony in communication - CEO acts as consumer spokesman and challenges industry conventions - Contract Freedom - Contract Freedom B2B - Test Drive - Unleashed iPhone - Jump! - Jump! On Demand - T-Mobile Tuesdays Liberation from category conventions by emphasising: Simplicity Fairness Value

38. 38UNDERSTAND TODAY. SHAPE TOMORROW. Get in contact with LHBS to learn more about the Customer Value Canvas www.lhbs.com LHBS // T-MOBILE UN-CARRIER CONTACT

39. Die in dieser Präsentation dokumentierten Gedanken und Vorschläge sind geistiges Eigentum der   LHBS Consulting Berlin GmbH und unterliegen den geltenden Urhebergesetzen. Die unauthorisierte Nutzung,   die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet. LHBS Consulting Berlin GmbH Köpenicker Straße 154 10997 Berlin Germany IMPRINT UNDERSTAND TODAY. SHAPE TOMORROW. 39 www.lhbs.com THANK YOU LHBS // T-MOBILE UN-CARRIER