T-Mobile has recorded a good third quarter financial earnings, which narrowed the loss and increased the carrier’s subscribers base compared to the last year’s Q3.
It seems T-Mobile user base increasing as suggests the report in Q3 2013 financial earnings. I the 3rd quarter ending last September, the firm has added more than 1 million new customers, which comprise of 643K new kinda post-paid subscribers. According to the reports, the new kind of post-paid subscribers tend to have high credit history, with willingness to pay more each month. After the addition of these customers, the company has netted more than 45 million total customers.
T-Mobile’s CEO John Legere said in the press release:
“Our momentum is great and we have confidence that we can continue to deliver sustainable and profitable growth.”
U.S.’s 4th largest carrier, T-Mobile posted a $36 million loss, which is a mere loss compared to the last year’s $7.74 billion loss in Q3, however, the company hasn’t disclosed the per-share loss but said that it will reveal it in this week in 10-Q filing. T-Mobile’s Q3 revenue jumped to $6.69 billion (with the help of 5.6M smartphone sales), better than the expected revenue of $6.57 billion average by analysts.
The main reason for the increasing customer base might be the new plans introduced by the company, such as No-contract business model (Uncarrier initiative), free international data roaming charges, early upgrde program as well as the recent 200MB of free internet data for tablet buyers.
In Q3 2013, Sprint has posted a profit of $383 million, but simultaneously lost more than 300K customers in the quarter, whereas AT&T seems to be losing its feature phone customers. Verizon has added 1.1 million new customers in the same quarter, with 3.9 million iPhone activation.
T-Mobile’s Uncarrier approach seems to be working and the company expected even more addition of customers in coming months. There might be a chance of other carriers following the same strategy, what is your view on this?