Telecom Lead America: T-Mobile USA has appointed John Legere as the new CEO.
Before joining T-Mobile, Legere was the former CEO of Global Crossing, where he completed the world’s first integrated global IP-based network, achieved near-perfect network operations and improved customer satisfaction.
“As T-Mobile moves forward with its strategic initiatives to improve its market position, including expanding its network coverage and initiating LTE service, John has obviously the right skillset to lead the business into the future,” said Rene Obermann, CEO of Deutsche Telekom.
Legere’s other assignments include: CEO of Asia Global Crossing, a Microsoft, Softbank and Global Crossing joint venture; president of Dell’s operations in Europe, the Middle East, Africa, and the Asia-Pacific region; president of AT&T Asia and New England Telephone.
According to Bloomberg, John Legere faces the task of halting customer losses, reducing costs and overseeing a network upgrade to match technology offered by larger rivals AT&T and Verizon Wireless.
T-Mobile USA lost 1.65 million contract customers last year and has reported further defections this year, forcing the company to reduce operating costs and invest in new technology. The carrier said in March it plans to shutter seven out of 24 call centers, cutting 1,900 jobs. In May, the unit said it will reduce a further 900 jobs.
As part of the turnaround effort, T-Mobile has budgeted an additional $1.4 billion for network upgrades for the two years through 2013, bringing total investment to $4 billion.
With 33.2 million users, T-Mobile USA is positioning itself as a more affordable alternative to Verizon, AT&T and Sprint Nextel. T-Mobile USA has about 36,000 employees and generated about 25 percent of its parent’s revenue last year.