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Article

Title: T-Mobile Readies New Web Phones--And Hangs Up on a Star Pitchwoman

Author: Sharma, Amol Article Type: Company
Source: Wall Street Journal, v248 n73 pB1(2) Publication Date: Sep 26, 2006
  ISSN: 0193-2241
  Illustrations: Photographs, Tables
URL of Publication: http://www.wsj.com

T-Mobile USA plans to introduce a number of new services to attract more customers. In addition to offering a new line of Internet phones, the firm also plans to drop Catherine Zeta-Jones as its celebrity pitchwoman. T-Mobile will release its next-generation phones as early as October 2006. These phones will be able to roam onto wireless Internet connections in users' homes and in the thousands of Wi-Fi hot spots the company has. Other cellular carriers in the United States are thinking about providing similar products, but T-Mobile is at the front of the pack. It may be the first carrier in the U.S. to provide an Internet calling service similar to Vonage. The new offerings and plans will result in a major rebranding initiative. T-Mobile has decided not to use Zeta-Jones in its advertising any longer. Instead, it will go with a man-on-the-street approach to its marketing. Zeta-Jones is likely to continue to appear in some advertising until her contract expires in 2007, but she will ultimately be phased out. This contract is valued at several million dollars, according to company sources. T-Mobile's actions come after the firm invested over $4 billion in new radio frequencies during recent spectrum auctions held by the Federal Communications Commission (FCC). The new spectrum will be used to construct a cellular broadband network to allow customers to surf the Web on their laptop computers and download media content to their cell phones at rapid speeds.

Special Features: Photographs, Tables

Companies:
T-Mobile USA Inc

Products:
Wireless Internet

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