(Every year, TIME highlights 100 companies that are changing the world. Submit your application now for a chance for your company to be evaluated by our editorial team.)
At the close of 2012, T-Mobile US was facing significant challenges. With a market cap below $6 billion, it lagged far behind major players like AT&T and Verizon. However, in 2013, the company initiated a dramatic shift by rebranding itself as the “un-carrier,” setting out to differentiate from competitors through simplified pricing, more adaptable contracts, and a variety of customer benefits. This strategic pivot, along with the pivotal merger with Sprint in 2020—granting access to essential mid-band spectrum for 5G—propelled T-Mobile into a new era. Today, the company boasts a market cap exceeding $200 billion and serves over 100 million customers, positioning itself as one of the largest and most valuable mobile networks globally.
Even amid this impressive growth, T-Mobile remains committed to maintaining its original drive and the attitude of “punching upwards” that fueled its rapid ascent, according to CEO and President Mike Sievert. Sievert, who took the reins in 2020 after serving as COO since 2015, notes, “We have more opportunities ahead of us than ever before, as we’ve transitioned from a telecommunications company to a technology leader, giving us a fresh canvas to serve our customers.”
Through collaborations with top AI firms like OpenAI and Nvidia, T-Mobile, recognized by TIME as one of the 100 Most Influential Companies in 2024, is poised to shape the future of connectivity over the next decade. In a conversation with TIME in November, Sievert shared his insights on the company’s vision.
This interview has been condensed and edited for clarity.
During your interview with Nvidia CEO Jensen Huang earlier this year, you discussed the concept of co-inventing the future. What future are you envisioning?
With T-Mobile’s current influence, we have a significant chance to shape the future of connectivity.
Connectivity is more vital than ever in our daily lives. Just last week, a major storm hit Seattle, causing our home to lose power, yet our connectivity remained intact. Although the nearest T-Mobile tower was down, the company’s self-healing network rerouted signals from a distant tower.
It struck me that if I had to choose between power and connectivity, I would prioritize connectivity. Being able to check on my kids and my mother, even without electricity, highlighted the essential service we provide. This realization motivates us to collaborate with the brightest minds in the field to envision what connectivity will look like in ten years.
Unsurprisingly, AI technology will drive this future: networks will be capable of real-time optimization to ensure optimal connectivity wherever our users are.
With Jensen, we are pioneering a future we term AI-RAN (Radio Access Networks). Currently, we have computing power at our thousands of network nodes across the nation, and we aim to virtualize this into 60 data centers near the edge of our network—this will allow us to harness the efficiencies of a centralized virtualized data center.
Network demands fluctuate throughout the day. By utilizing surplus computing resources to handle AI workloads during off-peak times, we can significantly enhance user experience.
What does it entail to virtualize the network into data centers, and how does this enhance user experience?
In our core operations, AI-RAN can enable self-correcting networks in real time, which is crucial as data loads increase. AI technology will amplify network demands, making it essential for us to stay ahead of this growing need.
For instance, imagine a scenario in the future where you are uploading high-definition video to an AI cloud while a large vehicle obstructs the signal between you and the tower. As you move, the network will automatically adjust to maintain your upload.
We foresee AI workloads playing a critical role in the edge cloud. Currently, we have two types of workloads: massive cloud workloads that require significant computing resources and local AI processing on devices. These two approaches are fundamentally different.
We anticipate a “Goldilocks demand,” wherein emerging large language models (LLMs) will focus more on video, images, and audio processing. To effectively analyze real-time data, it requires a hybrid of cloud-like computing power and proximity to the end user, which creates a prime opportunity for edge clouds.
While we currently lack a business model for this initiative, I presented an exciting multi-year plan at our capital markets day that does not include this aspect. Nevertheless, we view it as a significant opportunity, especially now that T-Mobile has a vast infrastructure and technological capabilities that were unavailable just a few years ago.
We believe that as AI applications become more immersive, they will benefit from the Goldilocks architecture I described. Whether this assumption is correct remains to be seen, but the good news for our financial outlook is that it doesn’t matter—we’re committed to building it, as it will enhance our core business.
You’ve collaborated with OpenAI to create “IntentCX,” a platform that utilizes AI to understand and address customer needs in real-time, set to launch in 2025. What constitutes an ideal customer experience for you?
A key aspect of our approach is to eliminate pain points. To be a truly exceptional wireless service provider, we aim to minimize customer interactions by proactively preventing issues.
In 2023, we experienced our lowest churn rate ever—though, with our size, that still meant 8 million people switched to other providers. As a pilot, I liken it to an “accident chain”—every customer who left encountered a series of problems that led to frustration and ultimately departure. Each of these individuals leaves behind a trail of data indicating what went wrong and what we could have done differently.
Historically, we haven’t utilized this data effectively; we’ve barely scratched the surface. However, we’ve spent the last two years restructuring our data systems so that AI can analyze all relevant information—network data, billing data, customer interactions, and more—simultaneously to identify these trails.
We aim to develop advanced bot technologies that will truly impress. But it’s not about putting barriers between us and our customers; it’s about leveraging this technology to create an experience that deepens their loyalty to us.
T-Mobile has recently announced a shift from being a “challenger” to a “champion.” What does that transformation involve?
As I lead a team that has achieved remarkable success over the past decade, one of my foremost challenges is maintaining everyone’s drive, humility, and determination to pursue the future. Our approach has evolved.
Once upon a time, T-Mobile was a small player competing against much larger rivals, fostering a culture of striving against giants for the benefit of our customers. We initiated the “un-carrier” movement because we were fundamentally different from those large corporations. We often reminded ourselves that one day we’d reach or surpass their size, but we must remain unlike them—companies that disregard their customers, take them for granted, and lack innovation. The question now is how we can maintain that ethos during a period of success.
This is the essence of our transition from “challenger to champion.” Rather than merely addressing the shortcomings of others, can we establish new industry standards that no one else has envisioned? For example, can we be pioneers in offering direct-to-cell service through a partnership with SpaceX, eliminating dead zones and allowing mobile phones to connect directly to custom low Earth orbit satellites? We announced this initiative two years ago and are nearing its launch. Another example is “T-Priority”—utilizing advanced 5G technology to create a dedicated 5G network for first responders nationwide. Our focus during this challenger-to-champion phase is pioneering innovations that others cannot achieve.
In a recent earnings call, you referred to T-Mobile’s “secret sauce.” How would you define it?
One defining characteristic of our success over the past decade is that we deliver on our promises—something no other company in our industry can claim. If you were to contrast our Capital Markets Day in 2021 with those of our competitors at the same time, you’d find that we are the only company still actively pursuing the initiatives we outlined. This reliability resonates with investors, the public, and our customers, as it showcases our ability to execute.
Moreover, we need to anticipate future trends. Perhaps we were fortunate, or perhaps we were insightful, but a significant part of our success has been recognizing the potential of 5G technology. While most of the industry believed that 5G would focus on new devices rather than smartphones and that it would rely on millimeter wave spectrum, we viewed it differently.
We understood that customers wanted their smartphones to function seamlessly everywhere, offering speeds at least ten times better than before. The technology to achieve this lay in mid-band spectrum within a layered 5G network. As a result, we acquired Sprint, which possessed a wealth of mid-band spectrum but struggled with its business model. This merger has arguably been the most successful in telecommunications history, forming the foundation of our current company.
We accurately predicted the nature of 5G, and while competitors scramble to catch up, they are years behind. It’s vital to keep looking ahead, and we are determined to get the next era right.
Are there any aspects of the future of AI that concern you?
My primary concern is the pace at which we adapt. Technologies are evolving swiftly, transforming our interactions with computing and one another. Companies that can anticipate these changes, invest wisely, and seize opportunities will emerge victorious. A prevalent question surrounding AI is whether it’s just a passing trend or if it will genuinely create value. I firmly believe this is not an AI bubble; it’s our responsibility as companies like T-Mobile to leverage these advancements and demonstrate their transformative potential.
If companies like ours fail to showcase significant breakthroughs enabled by this technology, the perceived benefits will be delayed. This is one reason why firms like OpenAI and Nvidia are keen to partner with us—they recognize our proactive approach and share our interest in proving tangible value for end users while creating financial gains for all parties involved.
We’re already witnessing the potential of AI. After two years of hard work, I announced a goal in September to reduce direct problem-solving and customer service interactions by 75% within three years.
We are on track to achieve this. We have a detailed quarterly plan in place, and we’re already seeing the value materialize. This is just one of several metrics I shared. We’re proving to ourselves that our goals are achievable, as we’ve laid the groundwork. Our T-Life app is operational, and by 2025, we will tackle the most challenging aspects of this initiative. Once we initiate significant delivery elements, I believe we’ll be on the verge of realizing the full extent of this opportunity within the next year, and we can already sense that potential.
(To receive weekly emails featuring conversations with top CEOs and decision-makers worldwide, click here.)
