Deutsche Telekom has not been having the best year ever. T-Mobile introduced the G1 mobile phone powered by Android but the sales were not as competitive as the Apple iPhone. On top of weak sales, Deutsche Telekom has had to report a loss of $849 million on their mobile division and write down $2.4 billion in assets related to T-Mobile U.K. T-Mobile USA has seen growth of about 19.5% or about $5.46 billion.
Due to the weakness of T-Mobile U.K., it is rumored that shareholders in the division The Blackstone Group and the German government are pressuring Deutsche to sell that unit off. Recently the company started a marketing campaign where a group of people dance in a train station. T-Mobile is the second largest mobile phone carrier in the United Kingdom, but has a lower average revenue per user than competitors such as Vodafone, O2, and Orange.
Recently T-Mobile hired Richard Moat, the former CEO of Orange in Romania. The HTC G1 on T-Mobile will also have a software upgrade called Cupcake 1.5. This software upgrade adds video capabilities to the phone’s camera and improves GPS/web browsing.