T-Mobile Reports First Positive Quarterly Results Since 2009, Sells 500,000 iPhones In First Month

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With T-Mobile releasing preliminary numbers during the first few days of April, we had a pretty good idea of what their first quarter results would show. As the official numbers released early this morning, the news is mostly positive, though there is still plenty of work to be done before we can officially call anything a complete “turnaround.”

The first bit of bad news is that its revenue dipped 7% year-over-year from 2012. However, revenue was up by 12.4% from last quarter, which is a positive sign. So now the good news, the addition of 579,000 net mobile customers, branded customer losses stopped for the first time since 2009 and branded postpaid churn dropped to 1.9%. As for the anticipated iPhone sales figures — they aren’t disappointing as the company announced the sale of approximately 500,000 units to new and existing customers to date. Compare that to Sprint selling 1.5 million iPhone units in all the first quarter of 2013. That means T-Mobile sold 1/3 the number of units in 1/3 the time, very not bad.

All of this points to signs that their UNcarrier model is working and we hope that by this time next year T-Mobile is well into customer growth boosting the now 34 million total customer count pre-MetroPCS. The company says they are on track to hit their goal of 100 million LTE pops by mid-year and 200 million by years-end. The HSPA+ refarm on the 1900MHz spectrum already exceeds the mid-year target of 170 million pops and 200 million pops are expected to be covered by years-end. With the MetroPCS deal now finalized, there’s plenty of room for T-Mobile to head north in the subscriber count and add plenty of back in the next financial results reports. One key factor to keep an eye on will be ARPU which will be a helpful determinant as to the success (or failure) of the company’s UNcarrier strategy. At the end of the first quarter of 2013 Value and Simple Choice plans comprised 36% of the Company’s branded postpaid base, up from 30% at the end of the fourth quarter of 2012.

“Our first quarter operating metrics and financial results are showing positive impact from the changes we began making in the fourth quarter. CEO John Legere said in a statement, adding that the company added T-Mobile branded customers for the first time since early 2009. “Things only get more exciting from here, having brought T-Mobile USA and MetroPCS together to create the wireless industry’s value leader and premier challenger.”

Some key highlights:

  • Successful Un-Carrier, iPhone and 4G LTE launches announced on March 26th to further enable growth
  • Branded customer net additions of 3,000, first branded customer growth since first quarter 2009
  • Branded postpaid net losses of 199,000, a 61% year-over-year improvement
  • Branded prepaid net additions of 202,000, the seventh consecutive quarter of prepaid growth
  • Total customer net additions of 579,000
  • Branded postpaid churn 1.9%, the lowest since second quarter 2008
  • Adjusted EBITDA of $1.2 billion and strong adjusted EBITDA margin of 29%

T-Mobile

 

Full Release:

T-Mobile USA Reports First Quarter 2013 Results

Branded Customer Growth and Strong Adjusted EBITDA Margin – Successful Introduction of the Un-carrier Promise

First Quarter 2013 T-Mobile USA Highlights Include:

  • Successful Un-Carrier, iPhone and 4G LTE launches announced on March 26th to further enable growth
  • Branded customer net additions of 3,000, first branded customer growth since first quarter 2009
    • Branded postpaid net losses of 199,000, a 61% year-over-year improvement
    • Branded prepaid net additions of 202,000, the seventh consecutive quarter of prepaid growth
    • Total customer net additions of 579,000
  • Branded postpaid churn 1.9%, the lowest since second quarter 2008
  • Adjusted EBITDA of $1.2 billion and strong adjusted EBITDA margin of 29%

BELLEVUE, Wash.–(BUSINESS WIRE)–May. 8, 2013– T-Mobile US, Inc. (NYSE: TMUS), the combined company resulting from the recently completed combination of MetroPCS Communications, Inc. (MetroPCS) and T-Mobile USA, Inc. (T-Mobile USA or the Company) today reported first quarter 2013 results for T-Mobile USA, demonstrating significant, positive customer momentum throughout the quarter and the first positive branded customer growth in four years. T-Mobile USA reported 3,000 branded net customer additions for the quarter, resulting from a 61% year-over-year improvement in branded postpaid net customer losses due primarily to improved branded postpaid churn performance, combined with branded prepaid customer growth.

On March 26, 2013, T-Mobile USA launched the Un-carrier value proposition by introducing our radically simplified “Simple Choice” service plan and providing customers with the lowest out-of-pocket costs on some of the most popular devices available in the US wireless industry. On April 12, 2013, T-Mobile USA began selling the iPhone at all Company-owned stores in combination with the new Simple Choice service plan. To date the Company has sold approximately 500,000 iPhone5′s to new and existing customers. On April 30, we completed the combination of T-Mobile USA and MetroPCS, at which time the combined company’s name was changed to T-Mobile US, Inc. (T-Mobile), and on May 1, 2013, T-Mobile’s stock commenced trading under the new ticker symbol “TMUS” on the New York Stock Exchange.

T-Mobile USA’s capital expenditures for the first quarter of 2013 were $1.1 billion, in support of an accelerating network modernization program on pace to achieve 200 million covered pops with 4G LTE by the end of 2013. As of the end of the first quarter of 2013, the Company had launched 4G LTE in seven major metropolitan areas and modernized approximately 16,000 sites with HSPA+ on 1900 MHz spectrum.

“Our first quarter operating metrics and financial results are showing positive impact from the changes we began making in the fourth quarter. Branded customer net additions turned positive for the first time since the first quarter of 2009 and our postpaid business has demonstrated significant improvement,” said John Legere, President & CEO of T-Mobile. “We ended the quarter with strong operational momentum, which is continuing into the second quarter, driven by the successful launch of our Un-carrier “Simple Choice” service plan and the introduction of the iPhone into our device line-up. Things only get more exciting from here, having brought T-Mobile USA and MetroPCS together to create the wireless industry’s value leader and premier challenger.”

Financial and Operational Highlights

Adjusted EBITDA for T-Mobile USA increased by 12.4% to $1.2 billion when compared to the fourth quarter of 2012; however, on a year-over-year basis adjusted EBITDA decreased by 7.5% primarily due to service revenue declines. First quarter 2013 adjusted EBITDA margins of 29% were unchanged from the first quarter of 2012 as operating cost reductions kept pace with year-over-year service revenue declines. Adjusted EBITDA margins improved sequentially by 4 percentage points from the fourth quarter of 2012 as a result of lower promotional expenditures versus the fourth quarter of 2012 and due to planned higher promotional expenditures in the second quarter of 2013 related to the iPhone and Un-carrier launches. The continued customer adoption of the Value and Simple Choice plans, which represented 36% of T-Mobile USA’s branded postpaid customer base at the end of the first quarter of 2013, up from 30% as ofDecember 31, 2012, contributed to service revenue declines in the quarter of 9.9% year-over-year and 3.0% sequentially. The decrease in service revenue was partially offset by increases in equipment revenue, resulting in total revenues declining 7.1% year-over-year. Branded postpaid ARPU decreased year-over-year by 6.3% to $54.07partially reflecting increased adoption of Value Plans, while branded prepaid ARPU increased by 11.3% to $28.25 due to the continuing success of the Company’s monthly prepaid plans.

T-Mobile USA ended the first quarter of 2013 with approximately 34 million customers, an increase of 579,000 customers from the fourth quarter of 2012. The Company grew its branded customer base, with 3,000 net customer additions, for the first time in over 15 quarters, and experienced strong growth in its wholesale business. Postpaid net customer losses of 199,000 were reduced by 61% from the 510,000 net customer losses in the first quarter of 2012 and the 515,000 net customer losses in the fourth quarter of 2012. Strong branded postpaid churn performance of 1.9% contributed to the significant decline in branded customer losses. Our network modernization and strong execution on customer retention contributed to the 60 basis point reduction in branded postpaid churn from the first quarter of 2012 rate of 2.50%. The first quarter of 2013 marked the seventh quarter of branded prepaid customer growth, with net customer additions of 202,000 during the quarter. Branded prepaid churn of 7% remained consistent sequentially.

Continued progress on execution of the Challenger Strategy

T-Mobile continues to make significant progress executing the five elements of its Challenger Strategy, the Company’s playbook for challenging the industry status quo with a disruptive approach.

Amazing 4G services

T-Mobile USA announced the launch of its 4G LTE network in seven major metropolitan areas on March 26, 2013. The Company is making great progress with its 4G LTE rollout and expects to meet the goal of 100 million covered pops by mid-2013. We are also planning to deliver on the goal of 200 million covered pops by the end of 2013.

Deployment of HSPA+ on 1900 MHz spectrum already exceeds the mid-2013 target of 170 million covered pops, and is well on track for 200 million pops covered by the end of 2013.

Approximately 16,000 cell sites have been modernized under the Network Modernization program in less than 10 months. T-Mobile has total coverage of more than 300 million pops (including roaming) and 4G coverage of 228 million pops (HSPA+ 42 and 21 Mbps).

Value leader

On March 26, 2013, T-Mobile USA launched the Un-carrier value proposition by introducing: the radically simple, all unlimited “Simple Choice” service plan, eliminating annual service contracts, and offering customers the lowest out-of-pocket cost on some of the most popular devices available in the US wireless industry. The company also announced it would begin selling the iPhone at all Company-owned stores on April 12th.

As of the end of the first quarter of 2013 Value and Simple Choice plans comprised 36% of the Company’s branded postpaid base, up from 30% at the end of the fourth quarter of 2012. During the first quarter of 2013 the Company continued to make significant progress with its BYOD (Bring Your Own Device) program, adding approximately 100,000 previously owned iPhones to T-Mobile USA’s network per month.

Trusted brand

First quarter 2013 branded postpaid churn was 1.9%, the lowest level since the second quarter of 2008. This is a result of a multi-year churn and retention program, focused on addressing root causes of churn and dissatisfaction through policy and operational changes across all customer touch-points and interfaces.

The March 26, 2013 launch of the Un-carrier value proposition, the “Simple Choice” service plan and the iPhone were accompanied by a new brand advertising campaign – focused on differentiating T-Mobile from competitors and driving customer interest in T-Mobile.

Multi-segment player

The Company increased the number of customers served through its Mobile Virtual Network Operator (MVNO) partnerships by 376,000 during the quarter, an almost two-fold increase from the same period in 2012.

Business-to-Business (B2B) continues to demonstrate momentum in the first quarter. Overall, the number of B2B customers (Corporate, Government, and Individual Liable subscribers) grew by 7% year-over-year to 6.7 million. As part of our increased emphasis in development of T-Mobile business customers, Drew Kelton joined T-Mobileas the Executive Vice President of B2B. Previously, Drew was President of the Bharti Airtel Business in India.

The combination of T-Mobile USA and MetroPCS closed on April 30, 2013, adding another flagship brand to theT-Mobile portfolio. We anticipate this will accelerate our multi-segment growth and increase our ability to serve the full breadth of the wireless market.

Challenger Business Model

T-Mobile is continuously looking for opportunities to reduce overhead and other operational costs. T-Mobilecontinues to re-evaluate the Company’s cost structure and eliminate initiatives which do not fit with the Un-carrier value proposition and business model – implementing a set of changes which are targeted to deliver more than $1 billion in gross cost savings for fiscal 2013. These cost savings, which are largely reinvested in driving customer growth and experience, are an essential element to successful execution.

MetroPCS Combination

Following a successful regulatory review process and approval by MetroPCS’ shareholders, the combination of T-Mobile USA and MetroPCS closed on April 30, 2013, adding in another flagship brand to the T-Mobile portfolio. Together, T-Mobile USA and MetroPCS will create the U.S. wireless industry’s value leader. The stock of the combined company, T-Mobile US, Inc., trades on the New York Stock Exchange under the new ticker symbol “TMUS”. T-Mobile frontline employees and executives recently celebrated the listing of TMUS by ringing the opening bell at the New York Stock Exchange on May 1, 2013.

Quarterly Financial Results

For more details on T-Mobile USA’s first quarter 2013 financial results including our “Investor Quarterly” and detailed financial tables including the required non-GAAP reconciliations, please visit T-Mobile US, Inc.’s Investor Relations website at http://investor.T-Mobile.com.

Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Any statements made herein that are not statements of historical fact, including statements about T-Mobile’s (incl. T-Mobile USA’s) plans, outlook, beliefs, opinions, projections, and expectations are forward-looking statements. Generally, forward-looking statements may be identified by words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “views,” “may,” “will,” “forecast,” and other similar expressions. The forward-looking statements speak only as of the date made, are based on current assumptions and expectations, and involve a number of risks and uncertainties. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include risks discussed in our filings with theSecurities and Exchange Commission, including those described in our Current Report on Form 8-K filed with theSecurities and Exchange Commission on May 8, 2013. You should not place undue reliance on these forward-looking statements. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

Source: T-Mobile US, Inc.

T-Mobile US, Inc.

 

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  • http://www.youtube.com/#/mrjlwilliams J. Williams

    So the iPhone 5 saved them. That’s a shocker, lol. Who didn’t know this would happen? I’m happy for T-Mobile, because they are number 1 in my book. Go TMo!

    Now bring my Samsung Galaxy Note 3 later this year, by Christmas time. Woohoo.

    • http://www.facebook.com/ashwin.dyre Ashwin Dyre

      Yo whatsup! Love your videos on youtube bro keep it up

  • Verizonthunder

    T-Mobile Rebound’s thank’s to the Iphone

    • TayshaunBoba

      These are first quarter results.. In other words, iPhone wasn’t even available yet.

      • Verizonthunder

        500,000 sold

  • Justin

    There were to many Apple fanboys in the USA so they had to get the iphone even though the GS3, Note 2 , and GS4 are the better smartphones . The Samsung commercials during the NBA Playoffs had my family and I cracking up.

    • Makoute

      Some people actually like the look of their devices.

      • Trevnerdio

        All of which look good.

    • bleeew

      Galaxy series is just as bad. Everyone has that GS3 that it gets annoying.

      • Trevnerdio

        ….I still see the iPhone everywhere I turn

    • http://profiles.google.com/mrice.hill Mr. Hill

      Better is subjective. I’ll take iPhone 5 over either of those phones. Specs don’t equate to better real world performance in case you didn’t know.

      • TechHog

        Enjoy having a couple of milliseconds less lag…

        • http://profiles.google.com/mrice.hill Mr. Hill

          I will and I do. Thanks.

        • TechHog

          And I’ll enjoy my larger screen, higher resolution, greater functionality, and customizing abilities. Losing 10 seconds of my life compared to you over the next year or two will hurt though. :c

        • Dion Mac

          lol

      • http://twitter.com/TEKtheMAESTRO TEKtheMAESTRO

        no. better is not subjective. saying the s4 looks better is subjective. but facts are facts. what real world performance does this iphone 5 excel in that u speak of over the s4 and one? with your mindset if one got a A+ and the other got a B, you think saying the A+ is better is subjective.

        • http://tmonews.com David

          Congrats on completely defeating your own argument!

        • Jarred Sutherland

          No, it IS subjective. Better has nothing to do with specs. Provided the specs are adequate the software is the key factor now. Samsungs gimmicky features do not make a better product. They have some “wow that’s neat” stuff, but that will wear off with time as it does for every device (aka Siri).

          Between Android, iOS and Windows Phone what is better is subjective because each persons needs will be different, therefore better to one person is NOT better to another.

          I have had many Android devices since the Motorola Droid (far too many), and I have had every iteration of iPhone as well. Personally, the iPhone (FOR ME) is better. The app selection and quality is far superior to what I have found on Android. The fact that the 1400 mAh battery on the iPhone can outlast my 1800~2200 mAh batteries on several devices speaks to the fact that iOS is better managed for the time being.

          Please do not confuse opinion for fact, or spec wars to equate to anything other than a measurement contest. Better IS subjective.

        • http://twitter.com/TEKtheMAESTRO TEKtheMAESTRO

          youre projecting your denial about whats better onto everyone else. the iphone battery doesnt outlast the s4. apps have NOTHING To do with a phone unless youre comparing OSs now, which you werent. you said phone. thats hardware. and when it comes to hardware there differences between the s4 and iphone become night and day. which phone is better on paper? s4 by a mile. and ur saying cuz you…a person who admits hes bought EVERY single iphone (which means you average 1 new iphone a year LOL!) is saying an iphone which is worse in EVERY conceivable manner…is better. who’d believe you? apps aside, facts are facts. which phone performs better? customizable? better battery? better camera? cmon man…

        • Bratty

          You are a sad sad man that cannot follow his own logic. Congrats???

        • JB

          I’m kind of excited to see how this all ends…. Lmao

        • http://tmonews.com David

          Lulz.

        • MarcusDW

          O.o

    • Jared Wolfe

      You forgot to add the HTC ONE!

    • Jarred Sutherland

      Many commercials have me cracking up, but that doesn’t mean their products are better. The idea that anyone who chooses to use a device that you don’t like, thus making them a “fanboy” is just stupid.

      Perhaps we choose to use the devices that WE feel are better. For the bulk of people, the iPhone “just works”. That is a HUGE draw over the simple fact that with Android the user has a TON of control over the performance of the device .. users that for the most part have no clue that some apps will drain battery because they perform background actions (generate ads, etc).

      It is a tradeoff, more control and the higher risk of degraded performance and battery life or less control (playgrounds limited kids) but the OS is better able to manage performance limiting factors.

      But please, for your sake, let people have their choice. Who cares what everyone else uses.

  • JB

    This is awesome. Hopefully this is the begining of something great!! If the iPhone 5 sold that many in a month, just imagine what an iPhone 6 (or 5s) will bring in (especially with their entry price to own one being lower than the other carriers)

    Oh and btw David, where’s your little PSA telling everyone that the SGS4 is out in select T-Mobile stores today? (I was getting used to those) :-)

    • http://tmonews.com David

      It’s coming, I got this up first then had breakfast and changed some diapers!

      • JB

        Ahhh the joys of fatherhood… :-)

        • http://tmonews.com David

          Yessir, but I wouldn’t trade it for anything! The post is now up!

        • JB

          Awww! and you know I’m just giving you a hard time right? I know you’re practically a one man show, and and I’ve got mad respect for ya !

        • http://tmonews.com David

          Of course man! I like that you guys keep me on my toes, it makes things fun! All good!

      • bob90210

        Be careful; do not mix the two up!

  • tmo_employee

    Good Now give Us our raise back

    • Jared Wolfe

      I hope you get your raise back! You guys deserve it.

    • Tier3tech

      My coach said today “maybe next year…”

    • Fraydog

      No offense, but you guys should try being profitable for a year. Expand some of that rural coverage for a change. You do that, the money will come.

  • http://profiles.google.com/mrice.hill Mr. Hill

    iPhone 5 launch did its job. Half a million in 1 month of a phone that has already been available on the other carriers for over 6 months is very impressive. With the huge number of existing customers that are upgrading to the iPhone I would say that it is effective at reducing churn as well.

    • kalel33

      They still had a loss of 199.000 post paid customers, which are the only ones buying the Iphone. They’re making their overall gains in the prepaid department where a prepaid person would have to shell out the entire amount for the Iphone at the start. That’s where the cheaper Android phones and WIndows phones make a difference. I would admit that the Iphone did curb some of the losses but it hasn’t fixed anything.

      • http://profiles.google.com/mrice.hill Mr. Hill

        True they did lose some postpaid customers but the overall effect the iPhone on postpaid churn won’t be seen until the Q2 results post if I’m reading this article correctly. The iPhone wasn’t released until the beginning of Q2 (mid-April) so looks like we are wrong to correlate these Q1 results with the iPhone 5 launch. The 500,000 iPhones and the Q1 results seem to be two seperate unrelated events now that I re-read the article.

  • TMoFan

    The best news here is the reduced churn. T-Mobile has had a problem with it and to reduce it to 1.9% is positive. I view these results as a shift that will work its way up next quarter and beyond. UNcarrier is doing something different removing itself from the subsidy scam and people seem receptive to it.

  • Sidekicker89

    If the goal is to reach 200 million pops with LTE, doesn’t that match up with Sprints goal to reach 200 million pops by the end of 2013?? How is that possible?

    • jonathan3579

      It’s possible because Sprint is slow as hell. (Both their network and work on their network.) I’ve seen Sprint evangelist who say “it’s because they’re completely reworking the network” but their Network Vision was completed here in Houston months ago and I laugh at their speed tests on both 3G and LTE. I see my friends complaining almost daily about their experiences with Sprint.

      • Sidekicker89

        By “sprint evangelist” do you mean those trolls on Sprints Facebook page? Hahaha they’re annoying!!

      • frequency8

        There are currently no cities that are 100% complete on Network Vision. During the month of February, Houston was only 57% complete. Please stop making stuff up.

        • jonathan3579

          Oh really? Show me a link with proof that it’s only 57% complete here. Do not give me their “We never stop improving our network” excuse of links.

        • frequency8

          From a Sprint employee http://community.sprint.com/baw/thread/113666
          The point is, nobody ever said they were completed in Houston. So stop spewing your BS.

        • jonathan3579

          So we are stating employee comments as fact. Oh okay. My mistake. /s

        • Fraydog

          Come look on S4GRU and you’ll see the actual towers completed. Until then, you just look misinformed and undereducated.

        • jonathan3579

          An unofficial forum. Great official proof here. /s

    • http://profiles.google.com/mrice.hill Mr. Hill

      Sprint is slow with their rollout and they’re lighting up LTE in cities with 50K people before many of the larger markets. Tmobile is doing all the large markets first like its supposed to be. I have no idea why Sprint rolls out LTE to small towns before addressing many if the major metros in the US.

      • Dakota

        Maybe is cuz those small markets don’t have T-Mobile coverage? Just wondering outer loud since I read that often… And w when I’ve been out of major cities the phones been useless

      • Icky

        In a small town, there are fewer people to get upset when it doesn’t work.

    • fsured

      Much of the hardware infrastructure for LTE is getting put in place with the network re-farm and the upgrades done for HSPA+. Maybe 15months ago someone posted how TMO is upgrading their technology in a technological order to LTE. While the other 3 companies are building the network from scratch, TMO did it in a more cost effective way, allowed for faster HSPA+ speeds in the process by utilizing the technology they already had, and this is allowing them to jump to LTE-Advanced before the others. This is how they will jump past Sprint in market coverage.

      HSPA+ can go way faster than 42mb or what Verizon has on their LTE. I’d like to know if they plan on making upgrades to the HSPA+ network since it is their back when not in an LTE area.

      • SouthernBlackNerd

        It is not that they did it more cost effectively. Sprint and Tmobile are building brand new state of the art networks from the ground up. The differences are that Tmobile already had backhaul to all their sites and they put in the cabinets, etc when refarming. Right now they are just putting up LTE cards in said cabinets and flipping a switch.

        Sprint still has to put up the cabinets, put in the LTE card, EVDO card and 1x card, then put up the antennas for PCS and 800Mhz, and finally wait for backhaul.

        Also, Tmobile did just buy Metro, who has a sizable amount of LTE coverage already.

  • mdosu

    So, iphone sales were to par with comparable competition. Don’t read too much into this. If TMo couldn’t sell 500k iphone5s, something is wrong. Overall, it’ll be hard to discern the net customer impact of uncarrier and LTE initiatives until the full year is over. Then let’s see how Tmo did. A more proper comparison of phone sales should be the S4, HTC One, Z10, and upcoming iphone6, b/c for the first time, TMo is on equal product footing. We’ll get a good look at these initial figures in the next quarter’s results. Good start, alot of work to finish on your end TMo, good luck.

    • fentonr

      That would be better than on par. Sprint had roughly 23 million more customers to sell them to.

      • kalel33

        Yeah, but Sprint customers have already bought their Iphones long ago. T-mobile should have a much higher percentage because it’s the first time they’ve had the option.

        • xmiro

          T-Mobile released the iPhone on April 12th, pre-orders started March 26th. The quarter ended March 30. Q2 ends June 30th

        • kalel33

          So it’s not a good comparison either way. Wait until the next quarter numbers come out to actually compare the two. Really, if were to compare T-mobile to Sprint on how each other is doing then the postpaid customer net gain/loss is the area to look at.

    • Dakota

      I wanna know how many were new customers

      • xmiro

        It says up there “Total customer net additions of 579,000″. Churn down to 1.9% when a few quarters ago it was almost 4% or 5%

  • bob90210

    Very not bad? Is that a meh or more like a sucks less?

    • xmiro

      all things considered it’s great news

  • Jay J. Blanco

    Great news lets take Sprint down !!! Lol I hate sprint.

  • ruffst

    I have 4 lines on T-Mo and would love to add a 5th, but I have Android for work and would really like to get on Windows there. Anyone selling a Windows phone? :)

    • fentonr

      No kidding! I hope they fix this soon. Until they do, you can use an unlocked AT&T or international phone if you live in an area that’s been refarmed.

    • steveb944
    • Josh Robert Nay

      Also highly recommended if you want something a little more higher end is the Nokia Lumia 810. I know quite a few people who have it and love it. If you prefer to buy unlocked devices in full, your best bet right now is the Nokia Lumia 920.

    • xmiro

      I’d wait until the new Windows Phone 8 announcements are made. There are new phones coming. Unless you don’t mind lower end phone and snag a Nokia 521

      • ruffst

        Thanks for the heads up. Was thinking about getting an 8X or Lumia 920 used and using that. But if there seem to be new ones in the pipeline, then maybe I’ll wait.

  • Dakota

    What’s considered prepaid now that everything isno contract.. is it only the $30 WM plan and pay per day? Did they breakout how many of those iPhone sales were to new customers? I’d be more interested in that. While many take a look at then cuz of pricing or unlimited data, I’m reading more and more complaints about their coverage. In ATL, I’m having more and more problems with coverage. It will often be support show on HSPA (<2) and lots of E when others with VZ/AT&T not only have coverage but 20-30mbps. While there no contact, you're posting $600 if you're not happy with the service or you move out whatever

    • kalel33

      Prepaid is when you pay before the billing cycle starts and post paid is when you pay after the billing cycle. A Value plan customer is not prepaid, because they pay after the month is over.

  • http://about.me/daylondeon Deacon

    i reserve judgement until LTE hits Dallas. then and only then will TMO have the glow.

  • steveb944

    Finally we have some growth! This is excellent news. And wait until the iPhone 5S drops and we’ll have even more customers coming in. Finally people notice how good T-Mobile can be.

  • Oliver Jackson

    As a Android enthusiast,this is great news for TMobile.Glad I jumped on board from Sprint and glad they got the iPhone 4,4S and the 5. John Legere knows his s**t .Wait til the GNote 3 comes!!

  • gummybear

    iPhone sales and the success of Uncarrier are not tightly coupled. Everyone knew T-mobile getting the iPhone would increase subscribers, it doesn’t mean that the Uncarrier Plans are being successful, now its more of an iPhone effect. The Uncarrier plans can be qualified a success only after a few quarters or so.

    • http://profiles.google.com/mrice.hill Mr. Hill

      These numbers don’t show the effects of the iPhone on customer growth/loss. The iPhone launched at the beginning of Q2.

      • John

        also the uncarrier plans launched on 3/26 the last 6 days of Q1. We won’t see the full effect of the iPhone and the new uncarrier plans till the end of Q2.

  • kalel33

    Just a little correction to your article. It wasn’t 2009 when the last net gain of branded customers occurred. In the third quarter of 2010 they had net gains in branded T-mobile customers, and in second quarter of 2010 was the last time they had a net gain in postpaid customers, which still hasn’t turned around.

    • BKM

      And it won’t, since we don’t sign new customers onto contract plans anymore

      • kalel33

        I never said contract customers, I said post paid. I replied to you with a correction but then read my post and never said contract. Post paid and prepaid are still the same divisions now, as they were then. Postpaid people make the company more money.

  • sushimane

    hopefully with this good news they would get more coverage lol. im happy with the coverage i have right now but its kinda weird i wont have coverage for a couple of seconds down the road from my house and in one section of a plaza in a restaurant kinda weird.

  • GinaDee

    T-Mobile: Provide the coverage and people will come. Don’t wait for people to come then provide the coverage.

    2G at the extent you have this built out needs to be swapped out with 4GLTE within 2 years or you guys are toast.

    • kalel33

      Same thing was said when they were by far the last to the 3G game and they did just fine. People choose T-mobile for the price, not for the network. If people chose carriers based on only network then Verizon and AT&T would be the only carriers.

    • Fraydog

      Really you’re more concerned about free sodas. I want T-Mobile to have better coverage too but let’s face it, if they don’t get LTE up in the urban areas first they’ll run out of headroom, at which point they’re screwed. If TMUS is actually profitable they can pay for their own rural expansion without debt and grow some more. That’s why the rural areas are down on the priority list. They can’t fund urban LTE. Urban LTE can fund rural expansions. Get it?

  • CO_yeti

    So these results are really just saying Tmo is turning itself into Cricket… a loss of 199000 postpaid customers and trying to make up for it with the addition of 202000 prepaid customers isn’t a very good long term strategy. It shows in revenue down by 7%…. Bad news if you want to continue to monderize your network.