Post-Merger, T-Mobile Sees First Customer Growth Since 2009
May 8, 2013 2:23 PM
comment(s) - last by
Additions offset a troubling revenue drop, meager 500k iPhone 5 sales
Good news has been
few and far between
for Deutsche Telekom AG's (
) U.S. brand T-Mobile USA, but the company -- America's fourth largest cellular carrier -- received some such news in its Q1 2013
added 202,000 branded prepaid customers, which offset loss of 199,000 contract customers to make for a net gain of 3,000 branded customers. The branded growth was the first T-Mobile has seen since Q1 2009.
T-Mobile is phasing out contracts and phone subsidies, and moving towards a monthly access charge model using unlocked, unsubsidized handsets. The carrier posted an even bigger gain -- 579,000 customers -- when its other brands, such as the MVNO prepaid service, were factored in. Postpaid (contract) customer churn (customer loss) was at 1.9 percent, the lowest level since Q2 2008. And postpaid customer losses were down 61 percent on a year-to-year basis.
While T-Mobile USA appears to be righting the ship on the subscriber front, revenue wasn't such a pretty picture. Average revenue per user (ARPU) for postpaid declined 6.3 percent. ARPU for prepaid rose 11.3 percent, but was not enough to bridge the gap. Overall T-Mobile's only pulled in a EBITDA (a profitability measure) of $1.2B USD, down 7.5 percent on a year-to-year basis.
T-Mobile USA moved a relatively competitive 500,000 Apple, Inc. (
) iPhone 5s in the
first few weeks of availability
. Contrast that with rival carrier Sprint Nextel Corp. (
) which sold a mere 1.5 million iPhone 4s, 4Ss, and 5s during three whole months of Q1. T-Mobile USA's iPhone sales rate is behind AT&T, Inc. (
) which sold 4.8 million units in Q1.
T-Mobile USA was recently involved in a
rather complex merger deal
approved by U.S. federal regulators in March
-- involves MetroPCS splitting its shares, then paying out $1.5B USD to shareholders (roughly half the market cap). This will dilute its stake by taking 74 percent of the resulting shares, while giving the combined company all of T-Mobile shares (meaning Deutsche Telekom AG (
) will no longer directly own T-Mobile USA).
that Japan's fastest growing mobile carrier, Softbank Corp. (
), is eyeing acquiring the resulting semi-independent T-Mobile USA and merging it with Sprint, if it can beat
rival bid for Sprint
. While Softbank has yet to even
win the acquisition of Sprint
, the potential plan to merge America's third and fourth largest carriers is drawing buzz.
This article is over a month old, voting and posting comments is disabled
It's amazing when....
5/9/2013 11:34:11 AM
A carrier finally gets what customers want. T-Mobile figured out that the key to gaining customers is NOT ripping them off or continually finding subtle new ways to screw them out of benefits/service.
I switched from sprint. I pay 50$ a month for Unlimited calls/txts/2.5 GB of 4G with free hotspot.
Let's hope the other carriers follow suit and the market gets much more competitive. Way to go T-Mobile, thank you.
RE: It's amazing when....
5/10/2013 1:04:32 PM
This is exactly what I love about T-Mobile, they are giving the customer what they want. They are getting out of the phone plus service business and into the service only business.
This allows a customer to buy a $150 Nokia Lumia off the street and spend $50 for unlimited everything. Cheap, reliable entry into the smartphone world.
A huge plus that you mentioned that most people don't notice is the free hotspot! Great addition to this revamped program.
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
Dish Looks to Scoop SoftBank, Offers $25.2B USD for Sprint
April 15, 2013, 11:22 AM
iPhone 5 to Hit T-Mobile April 12 for $99 Plus $20/Month Repayment Charge
March 26, 2013, 11:36 AM
T-Mobile Frees U.S. Customers of Subsidies, Provides Appealing Flexibility, Price
March 25, 2013, 1:58 PM
T-Mobile, MetroPCS are Ready to Merge, After DOJ, FCC Approvals
March 12, 2013, 5:11 PM
T-Mobile Sees Earnings Plunge, Loses 500K Subscribers
February 28, 2013, 12:58 PM
iLate: CEO Tim Cook Says Apple Watch Will Ship in April
January 28, 2015, 3:03 PM
Amazon's Fire Sale on Fire Phone Steps up in UK w/ 1-Day Sale @ $150 Unlocked
January 28, 2015, 11:53 AM
Apple Sees Record Profit of $18 Billion, Sells 74.5 Million iPhones in Q1 FY2015
January 27, 2015, 6:01 PM
Apple Might Miss High-End of Analyst Estimates, Microsoft Earnings Hint
January 27, 2015, 3:14 PM
Microsoft Smartphone Sales Up 28 Percent as Lumia Budget Models Gain Ground
January 27, 2015, 8:30 AM
Quick Note: Special 20th Anniversary PlayStation 4 Raises $128,000 for Charity
January 26, 2015, 4:14 PM
Most Popular Articles
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
Google Fixes Homophobic "Bug" in its Translator
January 27, 2015, 2:31 PM
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
Microsoft to Close Nokia Store, May Lose Over a Hundred Thousand Apps
January 26, 2015, 11:15 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information