T-Mobile US adds 1.1M customers on iPhone debut, contract initiatives

T-Mobile US adds 1.1M customers on iPhone debut, contract initiatives

Summary: The fourth largest U.S. carrier posted strong results, saying it had the strongest growth in four years thanks to in part its Uncarrier contract-killing initiatives.

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TOPICS: Networking
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(Image: T-Mobile)

Reporting for the first time as a public company, T-Mobile is back in the subscriber black, after reporting 1.1 million net new customer additions during its fiscal second quarter.

The fourth largest U.S. cell network, which completed its merger with MetroPCS in May and changed its name to T-Mobile US, also added another 8.9 million customers from the acquisition. In terms of raw growth, 685,000 new customers landed from its post-paid base.

Two reasons were pointed at for the jump in customers: the introduction of the iPhone in March, along with the company's still fresh Uncarrier and Jump! programs, which allow customers to cut themselves free from long-term contracts and upgrade more regularly, respectively.

"T-Mobile's Uncarrier approach has clearly resonated with consumers. By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers," said T-Mobile chief executive and president John Legere in prepared remarks.

iPhone sales accounted for roughly one-in-three smartphones sold, excluding MetroPCS. T-Mobile US cited Samsung's Galaxy S4 also as a revenue driver. In total, sales reached 4.3 million total smartphone units, up from 71 percent to 86 percent of all units sold. 

The company said it was "ahead" of its plan to bring 4G LTE with 157 million covered over 116 metropolitan areas in the U.S.

The firm's adjusted earnings before tax and interest (EBITDA) fell by 16 percent compared to the same quarter a year ago to $1.1 billion, attributed to higher promotional spending and "significantly higher gross additions."

Total revenue rose by more than one-quarter thanks to MetroPCS' addition to T-Mobile's finances from May. Record smartphone sales also played a part, the firm said.

Looking ahead, T-Mobile's full fiscal year adjusted earnings, including MetroPCS, are expected to be around $5.2 billion to $5.4 billion.

Topic: Networking

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6 comments
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  • to retain these customers

    They will have to go beyond metro areas. People's expectations are that high speed data is available at tourist/travel destinations, highways and immediately outside the metro areas they frequent. So look beyond 200 million pop for spa or let.
    GrabBoyd
    • hspa or lte

      Die spellcheckers, die.
      GrabBoyd
      • Haha

        Your comment was good, but your correction was even better! ;)
        bvolpone@...
  • T-Mobile has improved

    I've used T-Mobile since 2000, so I'm probably one of their longest tenured customers. I first joined reluctantly because their coverage wasn't great but their price was.

    Over the years they've improved greatly. Customer service is almost always great, coverage is good and the prices can't be beat. Adding the iPhone was a big win.
    bvolpone@...
  • That's Funny

    Not a word about Windows Phone. I heard they were the fastest growing OS that you never see!
    Gr8Music
  • t-mobil

    I was with Verizon for a longtime and now this greedy co. has pushed me to T-Mobile, I joined T-mobil a week ago, hopefully they will not disappoint me. I have to say that after shopping around you can not beat their price.
    bvahedy@...