T-Mobile Showing Signs Of Growth According To Upcoming Quarterly Report

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According to a new report via Bloomberg, T-Mobile will report a key milestone — the addition of contract customers for the first time three years next month. The subscriber gains will be reported when T-Mobile announces its first post-Deutsche Telekom quarterly results. Bloomberg’s source asked not to be identified because the information wasn’t public, but the writing has been on the wall. Of course this information is refuted by the fact that a recent Kantar Worldpanel study indicated T-Mobile’s share of the mobile market has continuously slid in recent years.

So what do we attribute this growth to? Well, it’s easy to point at the changes made since new CEO John Legere took over including casting T-Mobile as the “un-carrier” and their new Simple Choice contract-free rate plans.

T-Mobile is focused on rebuilding its customer base with higher-paying customers especially in light of losing 2.1 million subscribers a year ago. Any signs that T-Mobile is improving its margins might help convince Deutsche Telekom it doesn’t need to abandon its 74% share of the company.

“It looks like the turnaround is making progress,” said Heike Pauls, an analyst at Commerzbank AG in Frankfurt who has a hold rating on Deutsche Telekom shares. “It gives them time to hold out and not necessarily jump on the first offer that comes their way.”

Both T-Mobile and Deutsche Telekom declined to comment on second-quarter subscriber numbers. T-Mobile will announce their quarterly results on August 8th.

Bloomberg

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  • jon

    no mention of the iphone contributing to this? just the un-carrier and value plans? hmm

    • Zero0

      Here’s my take on the iPhone:
      Before T-Mobile had it, it was one reason not to get T-Mobile. People left T-Mobile for the iPhone.
      Now, the people who left are likely still under contract elsewhere. People exiting T-Mobile contracts are now more likely to stay because of the improved phone lineup.

      That isn’t to say that the iPhone didn’t help, but it’s not THE reason to get T-Mobile. People who want to use an iPhone can use any carrier now. T-Mobile still has to convince people that the iPhone is better on their network than any of the others, and that’s where the Un-Carrier strategy comes in.

  • Hydrazinium

    Hard to call it “post-Deutsche Telekom” quarterly results, when TMUS is still 74% owned by Deutsche Telekom. The MetroPCS deal sold only 26% of Deutsche Telekom holdings to Investors.

    Check the Wikipedia.org article
    http://en.wikipedia.org/wiki/T-Mobile_US#Merger_with_MetroPCS_Communications

  • Robert Mauro

    Re; Kantar

    I attribute the growth to the seeming fact that Kantar publishes all sorts of ridiculous numbers, including ones that contradict their own reports from the same time frame (dependent on who commissioned the reports). ;-)