T-Mobile bullish on subs additions following Q2 rises - Mobile World Live

T-Mobile bullish on subs additions following Q2 rises

02 AUG 2018

T-Mobile US announced it will unveil its next disruptive move as part of its Uncarrier strategy within the next fortnight, as it revealed what it said are its best ever set of Q2 earnings.

CEO John Legere (pictured) announced during an earnings call the operator will unveil its latest Uncarrier event on 15 August. He didn’t provide any clues as to what the forthcoming launch will entail, but at past events the operator offered customers free Netflix access, company stock and a weekly reward programme, free roaming in the US and Canada and unlimited video streaming.

Legere announced the plan as T-Mobile raised its guidance for full year post paid subscriber gains following a Q2 in which it increased revenue 3.5 per cent year-on-year to $10.6 billion and net income 35 per cent to $781 million. Service revenue, a figure which has plagued T-Mobile’s rivals, increased 7 per cent to $7.9 billion.

T-Mobile led US operator net subscriber additions with 686,000, up from 533,000 in Q2 2017, and posted record-low post paid phone churn of 0.95 per cent. The operator said it’s now expecting between 3 million and 3.6 million total post paid additions in 2018, up from a previous forecast of 2.6 million to 3.3 million.

Diverse user base
COO Mike Sievert attributed T-Mobile’s continued growth not only to winning share from its rivals, but also its ability to tap into under-penetrated markets including rural and other geographic areas, along with segments of the population ranging from military personnel to consumers aged 55 years and over. He noted the operator also had record success in the business sector, with its highest-ever number of activations in the segment.

He added T-Mobile’s combination of an improved network experience and differentiated customer care is helping keep churn levels low.

Though promotional activity has rationalised across the industry, Sievert said the operator may take steps to push 600MHz-capable devices into the hands of more customers to improve the network experience further as its rollout of the low-band spectrum continues. The operator said it now covers 992 cities and towns across 33 states with 600MHz.

T-Mobile executives said it remained “optimistic” its proposed merger with Sprint will be approved, and provided updates on its TV ambitions and plans for an upcoming mmWave spectrum auction.

Sievert said the operator is quietly expanding its recently acquired Layer3 TV service as it develops a nationwide product it plans to bring to market later this year.

CTO Neville Ray added T-Mobile definitely has a “material interest in participating in those [mmWave] auctions” later this year, but noted the operator has to secure permission to participate from the Federal Communications Commission due to its pending merger with Sprint.

Author

Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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