T-Mobile’s approach to edge computing is more than a hedge, but not a priority, either. Rather than chasing new markets--including edge computing--T-Mobile will concentrate on taking share in existing markets, a time-tested attacker's strategy.
That goes against the grain of public statements by other mobile operators and others that new 5G use cases in IoT and edge computing are the growth areas. But proponents might be overstating revenue upside in such areas. As with other new use cases, it takes time before value propositions are widely understood and ability to deliver value is ubiquitous and affordable.
T-Mobile says it will focus on taking share in business accounts, rural customers and home broadband markets, essentially relegating new areas such as multi-access edge computing, internet of things and private networks are areas T-Mobile has not said it will target.
T-Mobile historically has had less share from business customers than AT&T or Verizon, and likewise has been under-represented in rural markets. With spectrum assets that now help it address performance and coverage in rural areas, T-Mobile now is in position to address the coverage issues that have hampered it in rural areas, and with business accounts.
The home broadband attack likewise aims to take share in a big market worth about $195 billion a year, with a well-understood value proposition and pricing characteristics, where T-Mobile’s share of market is zero.
Comcast and Charter Communications alone book $150 billion annually from internet access services that largely are generated by home broadband customers.
T-Mobile has zero market share in that market. Taking just two percent means new revenues of perhaps $4 billion annually. That really matters, even if cable operators minimize the threat.
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