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T-Mobile managed to distract the US market's attention from the iPhone momentarily with its launch of the first Android handset, the G1, last month, but now plans to go up a gear, with a massive advertising campaign.

The operator plans to unleash a torrent of one billion online ads in two days this month, planning to reach 81m potential customers at a cost of an estimated $1.5m. One irony is that T-Mobile has chosen AOL's Platform-A platform to deliver the adverts, rather than DoubleClick, the rival service from Android leader Google. However, this is the biggest online campaign for G1 since Google gave it a link on its search home page for a few days after launch.

T-Mobile USA needs to regain ground lost to the big two mobile operators, Verizon Wireless and AT&T, as revealed in its recently released third quarter results. While the German-owned operator has always scored highly for customer service and mobile internet services, it is playing catch-up in 3G, having only just started rolling out its network, so high profile devices like G1 will be vital to growth.

In Q3, T-Mobile's data revenue was growing, but not at the same pace as its larger rivals'. While Verizon Wireless and AT&T saw year-on-year data revenue growth of 43% and 50% respectively, T-Mobile's was just 28%, a figure that should improve as it expands its HSPA network, which comes with the benefits of the newest equipment and some innovative web services.

These are urgently needed as the top two carriers widen the gap ahead of Sprint and T-Mobile. T-Mobile USA added 293,000 postpaid customers during the quarter, its lowest postpaid growth since 2001, and feeble compared to the total net adds of over two million each at AT&T and Verizon Wireless.

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