backtop


Print 9 comment(s) - last by N8SLC.. on Aug 1 at 2:52 PM

T-Mobile is gaining on Sprint

T-Mobile beat Wall Street expectations with its Q2 earnings report as it swayed back to profitability and saw subscriber growth catch up to rival Sprint.
 
According to T-Mobile, its second quarter financial report saw a net profit of $391 million USD with earnings of $0.48 per share -- an increase from a loss of $0.19 in the first quarter of 2014.
 
This boost was largely helped by the $731 million USD Verizon paid T-Mobile for licensing deals to acquire spectrum.
 
Total revenue was $7.2 billion USD, up five percent from Q1 2014 and 15 percent year-on-year. Subscriber growth added to revenue, as T-Mobile reported 50.5 million customers total (1.5 million were added this quarter alone).
 
This is great news for T-Mobile, but not its rival Sprint, which has around 53 million customers and likely feels the UnCarrier gaining on its tail.
 
“We have completely reversed T-Mobile’s trajectory and started a revolution that is changing the rules in wireless,” said John Legere, President and CEO of T-Mobile.
 

T-Mobile CEO John Legere

“Now -- with more than 50 million customers, 1.5 million customers added this quarter and 5 quarters in a row of over 1 million net new customers -- we are proud to be the fastest growing wireless company in America, with the fastest 4G LTE network and, just this morning, recognized for having the best Customer Service nationwide.”
 
Total operating expenses were $6.2 billion USD in the second quarter of 2014, down 10 percent from $6.9 billion in the first quarter of 2014.
 
T-Mobile's UnCarrier program has been underway for a year or so now, and while aggressive pricing, 4G rollout and better plans have helped gain momentum in the competition with other U.S. carriers (namely Sprint), it seemed the program led to some heavy losses. 
 
But today's Q2 results turned that around, showing that the UnCarrier program really is a force to be reckoned with.
 
Some recent UnCarrier offerings include a free unlimited international text and data plan in October 2013 and a "Get Out of Jail Free Card" that pays up to $350 per line in ETFs when switching from Verizon, AT&T or Sprint over to T-Mobile. 
 
More recently, T-Mobile started offering a $100 10GB family plan. The same plan costs around $160 on Sprint, Verizon and AT&T. 
 
For the quarter, Sprint lost 245,000 net contract subscribers, which is an improvement over last quarter's loss of 383,000. It also reported fiscal Q1 profit of $23 million USD, or one cent per share, on revenue of $8.79 billion USD.

Source: Business Wire



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Its getting better.
By MrRuckus on 7/31/2014 1:21:22 PM , Rating: 5
My wife came to my tmo plan once we were married over from Verizon. She was a hard sell and loved the Verizon coverage. We travel a lot to her fathers house out in the sticks on a plateau in Prineville Oregon. When we first went over, coverage was spotty over the mountains to his house. This was a few years ago. I also had edge for data once at his house but realized it was a small town.

We just recently got back and we noticed a couple of dead spots but not nearly as much as before. We also both had 4G at his house in the middle of no where (She is on an older S3, Im on an S5). Living on a plateau he can literally see the city from his yard, but I have yet to spot the tower we were getting our 4G from.

As long as I see improvements where I travel and live, Im good with that. They're doing a good job imo.




RE: Its getting better.
By bankerdude on 7/31/2014 2:17:09 PM , Rating: 2
I agree. I switched from Verizon last year in June right as the whole uncarrier thing was taking off and I have seen great strides in their coverage. At the time of switching last year, coverage inside my house was spotty, with non-LTE 4G barely making it to two bars and nothing in the basement. One year later, I now have 5 bars of 4G-LTE inside my house and all of the dead spots on my daily commute to work have been eliminated.

And wow, is the pricing better than Verizon. The funny thing is, I originally switched because I was sick of Verizon not getting the phones everyone else had (at the time TMOB had the HTC One and Verizon didn't have it yet) but once I switched I realized how much the uncarrier pricing plan can really save you on a family plan, especially with no overage fees on data. That feature alone has been a life saver on a few occasions.


RE: Its getting better.
By GulWestfale on 7/31/2014 2:43:51 PM , Rating: 3
in germany it is actually quite common that your data plan simply throttles back to 64kbps speed once you have gone over your high-speed allotment, and there are no overage fees and there is no interruption in service. now if only we could have that in canada, please...

than again, with wifi at home, at my work, and in most malls/hotels/places under rocks there seems to be an ever-decreasing need for 4G data anyway.


RE: Its getting better.
By Samus on 7/31/2014 4:16:29 PM , Rating: 1
I might switch back to T-mobile if they ever get their shit together in Chicago. It's depressing that Sprint (my current carrier) has better coverage here than T-mob does.

But T-mobile has better flexibility. International coverage and SIM's are two big ones.


RE: Its getting better.
By Nutzo on 8/1/2014 1:00:57 PM , Rating: 2
Used the international coverage while in Canada a couple weeks ago. Worked fine for me. My kid was sending text messages with pictures, and tried to send a video. She eventually got cut off saying she had exceeded the roaming data limits. Not a big deal as she shouldn't have tried to send a video.


RE: Its getting better.
By niva on 8/1/2014 1:13:25 PM , Rating: 2
Been on T-Mobile for a few years myself, it wasn't so long ago we took a huge road trip across the US and eventually into Canada/BC. Back then there was no international coverage so sim cards went out and we only used phones on wireless networks in order to avoid getting raped on roaming.

That being said I was actually very surprised at how good our coverage was throughout the road trip, I'm sure it's better now. I don't think I'll ever go back to AT&T, I left them because of a ridiculous bill since we went over our minutes one month and have been on unlimited T-Mobile since, paying a lot less than our regular bill at AT&T.

Cheers!


RE: Its getting better.
By mike8675309 on 7/31/2014 3:15:16 PM , Rating: 2
I recently experienced a coverage issue with T-mobile. They were actually interested in finding out why. They have a forum for such problems. They have a trouble ticketing system to report such problems. And they actually communicate with you.

When I was on Verizon and had coverage issues, they really could care less, because you know, they're Verizon and they must have good coverage.


RE: Its getting better.
By marvdmartian on 8/1/2014 7:35:58 AM , Rating: 3
Wouldn't it be ironic, if by getting more business, they had more money to invest in increasing their coverage, and eventually ended up challenging AT&T and Verizon for their business share??

One question, though? When they refer to the fastest 4G, are they referring to the fact that they're offering LTE? Or is theirs actually faster than the other guys??


RE: Its getting better.
By N8SLC on 8/1/2014 2:52:08 PM , Rating: 2
That claim is based on customer results using Ookla's Speedtest.net app.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki