T-Mobile Turns A Corner, Adds 1.1 Million Customers In Second Quarter 2013

T-Mobile Job Cuts

T-Mobile’s Uncarrier strategy is paying off as the carrier announced its second quarter 2013 financials late last night. The carrier added 1.1 million customers during the second quarter, including 678,000 net postpaid subscribers reversing several years of customer losses.

“T-Mobile’s Un-carrier approach has clearly resonated with consumers,” CEO John Legere said in a statement. “By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers.”

T-Mobile announced it sold 4.3 million smartphones in the quarter, representing 86% of total sales, up from 71% in the second quarter of 2012. T-Mobile expects that it will end 2013 with around 60-70% of its postpaid customer base on one of the company’s Simple Choice unsubsidized rate plans.

T-Mobile says the “successful executive of major strategic initiatives including the launch of the iPhone, the launch of Simple Choice and JUMP!, and the pending spectrum acquisition from US Cellular” are part of the reasons why the carrier led the US wireless industry in the second quarter with branded postpaid net additions. The company also posted a record number for churn of 1.58%, or the number of customers leaving the carrier during the second quarter of 2013.

T-Mobile also stated since the April 12th launch of the iPhone, it has accounted for approximately 29% of the company’s branded gross customer additions and upgrade smartphone sales, excluding MetroPCS. Clearly the addition of the iPhone to the company’s network can be partly attributed to the turnaround in the second quarter.

T-Mobile ends the second quarter of 2013 with 44 million customers, an increase of more than 10 million from the end of the Q1 2013 thanks in part to 8.9 million acquired customers from MetroPCS and the 1.1 million net additions from Q2.

Second Quarter 2013 Highlights Include:

  • Total customer net additions of 1.1 million, an improvement of 1.3 million net additions year-over-year
  • T-Mobile led the US wireless industry in the second quarter with 685,000 branded postpaid phone net additions
  • Branded postpaid net additions of 688,000, an improvement of more than 1.2 million year-over-year
  • Total branded customer net additions of 678,000, the strongest growth in four years
  • Record low branded postpaid churn of 1.58%, a decrease of approximately 50 basis points year-over-year
  • Adjusted EBITDA of $1.1 billion – pro forma combined(1) adjusted EBITDA of $1.3 billion
  • 4G LTE network rollout ahead of plan with 157 million people covered in 116 metro areas
  • Successful execution of major strategic initiatives including the launch of the iPhone, the launch of Simple Choice and JUMP!, and the pending spectrum acquisition from U.S. Cellular
  • Rapid progress with the integration of MetroPCS – expansion of MetroPCS brand into 15 new markets

There’s a full breakdown of the company’s Second Quarter 2013 results available on their website:

T-Mobile

 

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  • Milad

    Yeah , thanks to the iphone 5
    I personally bought 3 Phone 5

    • Daniel Darnell

      The iPhone has helped T-Mobile’s numbers but I don’t believe that’s the only reason why T-Mobile is doing well. A number of factors have contributed to there success. The new plans and phone options are working well with customers and beyond the iPhone T-Mobile is getting a better phone selection period. Also they have increased marketing a lot. Plus John Legere is one of the most down to earth and honest as well as amusing CEO’s I’ve ever seen. He’s brining attention to himself, T-Mobile, and defining the company’s brand. Being ahead of LTE roll outs is helping too. T-Mobile is also benefiting from Sprint being behind on LTE and Sprint’s other problems.

      • Roger Sales

        Sprint really hasn’t been doing a good job in spite of their awesome spectrum holdings. Their voice quality has seemingly gotten much worse in my area which is in the nyc metro….no top 4 carrier should be deficient here.

  • Ben

    I’m so glad to see that our beloved Magenta is back and it roaring with confidence. Two years ago we were not sure where T-Mo would be. To whom do we owe the gratitude? Whether it is the great marketing campaign, the iPhone 5, robust LTE and HSPA+ 42Mbps Network, great selection of devices, UNcarrier, the Metro PCS merger, or great, hard-working customer service representatives, we’re just glad that we’ve turned the corner to become a force in the wireless industry. What’s next? Well, the future is looking bright. Heads up, Sprint, your number three spot is no longer secured.

    • Trevnerdio

      What about a kick-ass CEO?? Ah? :D

  • Verizonthunder

    I plan to switch to T-Mobile when the Samsung Galaxy Note 3 is released

    • D Nice

      Come on over you wont be disappointed!

      • Verizonthunder

        I know my friend has the Sony Xperia Z very nice device and speed test was nice too with only two bars out of four on LTE he pulled close to 14mbps download and upload close to 6mbps very cool and the Ping was 32 !!

        • J-Hop2o6

          I can get 20+ down / 10+ up / 30ms ping with 1 bar of LTE in Seattle. Damn I love LTE and its quick response + consistency.

  • Thomas

    Cheap Plans + Great Phone + Fantastic Customer Service + Acceptable coverage (improving) = Success

  • kev2684

    it’s amazing how much can one turn around in one year.

    2012: no 4G LTE, 2-year contracts, intro to EIP, customer loss + flagship device line up:
    Samsung Galaxy S III
    Samsung Galaxy Note II

    2013: 4G LTE, company stores push EIP, no service contract, customer gaiins + flagship device line up:
    Apple iPhone 5
    HTC One
    Blackberry Z10
    Samsung Galaxy S4
    Sony Xperia Z
    Nokia Lumia 925
    Moto X (will be available through moto website)
    LG G2 (announced)
    —–
    Samsung Galaxy Note III (most likely)
    Apple iPhone 5s/6 (most likely)
    Sony Honami (possibly)
    HTC One Maxx (possibly)

    • 21stNow

      EIP was around when I joined in 2010.

    • Guest

      …and hopefully the HTC One Mini as well

      • superg05

        yawn……

  • TMoFan

    Impressive comeback and a validation of the UNcarrier strategy. I use to read these and cringe but after reading this I’m glad that they are on the upswing. If they manage to scoop up some spectrum at the next auction, spectrum that will truly improve coverage and building penetration, paired with this aggressive UNcarrier strategy then we can expect a resurgent T-Mobile that will be impossible to ignore. Have to hand it to Legere for turning things around.

  • TMOTECH

    Yep

    • sidekicker89

      Hey Tmotech! :) any new network news??

    • cameo

      I hope that includes better coverage in your HQ city, Bellevue, so one can get some signal at the other Applebee’s, not just at the one next to your HQ buildings.

  • idroid

    This one is to John Legere: if you create new progrm “NME “(NoMoreEdge) I guarantee additional 1.1 million customers in 3rd quarter.

    • J-Hop2o6

      THIS! I don’t ever see EDGE/GPRS in Seattle, but for the ones that do outside of metro areas, I hope Tmo can get on this very soon. I believe they have this planned and starting soon. Also, maybe even more than 1.1M ;)

      • idroid

        No shit, John lives in that area.

    • 21stNow

      Yes, I had a co-worker that switched to T-Mobile and left during the buyer’s remorse period due to poor coverage. We are in a major metro area, but coverage at his home was poor.

    • Fraydog

      I don’t mind that they’re putting the areas that are populated first for getting LTE, but converting the rural areas should get done by the end of 2014, especially since they’re ahead of schedule on the cities.

  • Danny Lewis

    Now, I just hope they can get some sub-1Ghz frequencies and they will be all set!

  • BigMixxx

    That’s not a turn. That’s more of an evolution of this mutant that t mobile is and wolverine is t mobile….

    I wonder if sprint is gonna take notice and just quit trying? Will prices change throughtout the industry as folks will start moving to t mobile?

    • 21stNow

      I hope so. If this happens, the woman that is dancing in the streets is me!

  • Jesse James

    biggest thing that impressed me the past year was phone selection. The great phone selection makes it easier to swallow the poor coverage compared to the top 2.

  • So?

    Okay, definitely welcome news.

    However, it means nothing to me until they get rid of the archaic EDGE that is EVERYWHERE. So sick of dealing with it daily, and the FOUR (!!!) dead zones I encounter on each way of my daily half-hour commute. Third world network, in my opinion.

    • ssl48

      I’m switching service this month. While the money you save is significant, it causes me too much frustration having EDGE coverage while traveling. I’m tired of going from 4g to Edge.

      • T-Mo Sucks

        Thank you, I may very well do the same. Enough is enough. Paying too much for too many lines stuck on EDGE Hell. WHat a joke.

      • KingCobra

        Bye

    • Roger Sales

      A third world network would be no network.

      • You need to get out more

        Clearly you don’t get out much.

        Buying a plane ticket and seeing other parts of this thing we call the “international community” wouldn’t be a bad idea as a means to broaden one’s horizon. I would recommend that over sitting in your trailer wasting money on cheep bear and chewing tobacco.

        That said, most of the “third world” countries I’ve visited in the Middle East, Asia, and Caribbean have impressive cell coverage (big and small countries), with 4G coverage and performance that makes T-Mo look like a complete joke.

    • Rudy Belova

      actually, it does mean something. After this news came out, Deutsche Telekom gave more cash to t-mobile. An extra €500 million actually.

      http://www.mobileworldlive.com/deutsche-telekom-backs-t-mobile-us-revival-with-more-cash

      • fsured

        If I understand things correctly, DT and everyone else knew T-Mobile USA was capable of sustaining its own cash flow. The company didn’t have the financial backing to do massive expansions in the network and DT was unwilling to front the money. Now that things are turning around DT is seeing the possibility of extra $$$ in the company when their European operations are taking a hit. This is my view of the situation though.

    • Jose Hernandez

      If it is that bad, switch to another carrier. Why are you paying for services you are not getting?

      • So?

        *sigh*

        What did our mommies and daddies teach us about assumption, eh children? I only RECENTLY moved to this area which is stuck in EDGE Hell (since I got a new job). My previous residence had decent HSPA coverage.

        Quit defending them. Non-coverage is inexcusable for Baltimore/Delaware suburbs for a company of their size and stature. Makes you look like a sheep who’s cognitively incapable of thinking for himself when you say idiotic things like that. I know how to manage my money, thank you very much.

        • Jose Hernandez

          *SIGH*
          Here we go. You never said you just started to ha issues because you moved. You complained about services not working. I TOLD you to not pay for a service you are not getting and go with a better carrier. How on Gods name is that defending them, is beyond me. So you seemed to have made assumptions on your own. Of course, then you proceed to insult someone just because you can? Really? Did your mom and dad teach you respect?

        • So?

          Just enough, you’re embarrassing yourself. I’m not even going to waste my time with a rebuttal to the garbage you just wrote.

        • Jose Hernandez

          I’m embarrassing myself?, really?, garbage?, really?

          lol
          Ok, since you don’t seem capable of having a normal conversation I will just leave it here as well.

        • JoseyPants

          Its Jose – ignore him. No common sense or intelligence.

        • Espain

          The only fool here is the person who pays for something he doesn’t like. The only exception is that fools are usually much nicer than you.

        • So?

          “The only fool here is the person who pays for something he doesn’t like”

          Since when did that become a rule?

          “The only exception is that fools are usually much nicer than you.”

          And this one?

          What you’re saying is people have to put up with corporate greed and inefficiency, and if they complain, they’re automatically “fools”? Right? Especially when they have limited choices for telecoms….that makes perfect sense, moron.

  • xmiro

    Hot. Damn!

  • Dakota

    Good for them. They still need to improve their coverage. After all those years of saying the iPhone didnt matter, I guess theyve changed their tune

    • TMOLOYAL

      They never said it did not matter. They said that would not break the bank to get it like Sprint had to. They said over and over that they were willing to carry it as long as Apple calmed down with their price demands, and what do ya know, that is exactly when they started carrying it.

  • Jay J. Blanco

    Wooooooooooow!!!!!!! Go T-Mo

  • cowboys901

    I’m stuck in between a 4g and 2g towers. I’m always gettin edge in my neighborhood. As soon as I get out I get 4g full bars. Same as work I’m out side full bars even 2 bars of LTE.but get inside I get edge. I’m beyond frustrated. I been with T-Mobile for a few years. Customer service says that they are switching over everything to LTE (memphis). But I ask about the 2g tower update, one minute they are converting next minute they says it’s working fine. I’m giving them till the end of they month if no improvement I’m going to AT&T

    • Deon Davis

      Ok bye. I never understood the need to vent here like we have any power to do anything about your situation, may I suggest wi-fi calling?

    • sidekicker89

      what area are you from? You can try asking T-Mobile to improve coverage in your area. Persistence helps and be nice.

      • cowboys901

        I’m in Cordova. I’ve called and been nice.they say they are working on it.and that they are adding towers and upgrading the 2g out here

        • Zombiexm

          they are… my area sucked with edge inside/HSPA outside. Now I am getting two bars LTE inside my house :|

        • cowboys901

          What is ur area

        • Zombiexm

          I live about 20-30 miles outside of washington dc. There are some Edge areas in the boon docks.

          But on a Military base I work there’s only edge. Its quite werid because when you drive right off base you all of a sudden get 4 bars hspa, in base you go from G to Edge four bars. Can they be blocking the hspa in base? :/

        • cowboys901

          Idk. It is the same way where I live. I come off the main road into my neighborhood and it goes from hspa+ full bars to edge.

        • superg05

          its very possible there on lock down lately about information being leaked over the internet

      • Spanky

        I tried asking T-Mobile to improve coverage in my area. Initially, they admitted that there is a cell site issue and assured me that they are fixing it. This went on for a year, after which they told me that the coverage in my area is excellent and that my phones are the problem. Asking them to improve coverage was totaly useless, unfortunately.

        • vrm

          Often, after re-farming, the AWS frequencies no longer work properly. You might need a phone that supports both AWS and PCS and may also need a new SIM card. The latter is free in a tmobile store. My signal reception improved radically after getting a new phone and SIM.

        • TylerCameron

          Basically every phone that T-Mobile sells is penta-band HSPA.

    • TylerCameron

      When I was in Memphis I had a few issues with T-Mobile. For one, I had no LTE, and second it doesn’t go far past the memphis city limits. You get Memphis, Southaven, and Horn Lake, soon as you hit Walls you’re in 2G land.

  • Marco Braggion

    T-Mobile is doing so good. Words can’t even tell how greatful I am for the company. I think we all owe this success to John, Neville, and Braxton. I know John hasn’t been with the company for a long time. But wow has he transformed the company from being a bleeding company to a successful force in the wireless industry. I can only imagine how Sprint is gonna feel when we take the 3rd place spot from them. Although when T-Mobile can reach to more customers and get existing customers off of the Dreaded 2G/EDGE then they will change people’s minds. I personally have 4G LTE wherever I go. I live between NYC and Secaucus. It’s very fast and very reliable. Thank you and I hope you guys keep getting through to people’s heads that T-Mobile is the best!

  • sidekicker89

    I live in Ohio and went to Minnesota to see the Mall of America. While i was there i visited the T-Mobile store and it was busy with people taking advantage of the $0 down sale.. then i walked over to the Sprint store and there were NO customers there. They had 4 people working in the store and they were goofing off because clearly they were bored. Both carriers have LTE in Minneapolis but clearly T-Mobile is preferred.

    • KingCobra

      A lot of T-Mobile’s gains last quarter came from defections by former Sprint customers. I think Sprint has the most to fear from T-Mobile than the other carriers.

      • T-Mobile Fan

        In Dallas. Verizon Vice President of Operations was terminated because they are losing so many customers to T-Mobile. Really great to see that other carriers are trying to copy cat the carrier they have always made fun of over the past few years

      • TylerCameron

        In large part because Sprint has a history of misleading customers, breaking promises, and 2-year contracts. Anybody remember how Sprint has the nation’s “first and only” 4G network and it was even expanding at the time.. then they stopped and that 4G got slower and slower.

  • vinnyjr

    Long time customer of T-Mobile, live in suburb of Boston. T-Mobile has brought in LTE in our area about 3 weeks ago. Now along with getting 15-20 mb down and 3mb up on T-Mobile’s HSPA+ Network we are also getting 25-30mb down and 6mb up on their LTE Network. What a great choice to have. I could not be happier with T-Mobile. They are constantly improving and adding towers all over the country. Since Mr Legere joined T-Mobile the company has a new upbeat feeling and not to mention stock prices have increased big time. The future has never looked better.
    Thank You T-Mobile

    • 21stNow

      TMUS didn’t have a stock price before John Legere came on board.

  • TmoSamsungMan

    Damn I was to late to say: muaaa muaaa I have no coverage so I’m gonna dye now cause its the end of the world! Let the coverage whiners begin lol!

    • kalel33

      What color are you dyeing to? Redhead, blonde, or maybe bright orange?

      • bob90210

        Magenta, of course.

        • kalel33

          lol

        • TmoSamsungMan

          Only my carrier lol.

      • TmoSamsungMan

        Grey. Chick’s dig the gray on such a young stud like me.

    • Spanky

      So let me get this straight…coverage doesn’t matter?

      • TmoSamsungMan

        Not to me cause I have it everywhere.

      • JBrowne1012

        Not for everyone.

  • Zombiexm

    The coverage whiners need to whine to the FCC / State officals on verizon att having a spectrum monopoly with 700mhz and demand limits on the 600mhz so tmobile/sprint can get what they need (the same amount verizon/att has of 700mhz)

  • Paul

    I switched to T-Mobile last month from Verizon and so far mostly happy. The biggest complaint is COVERAGE. You hear little to nothing about them improving coverage (even if it was 3g, it would be nice) and instead it seems they are only bragging about making network faster where they already have good coverage. You can go from super fast LTE to Edge in a matter of only 1 or 2 miles. It is highly inconvenient when commuting to go from super fast to barely loading anything within a minute or 2. I think T-Mobile should have focused more on coverage than speed in the coming months. Most folks can deal with a slower speed 4g speed as long as they have good coverage. Also, coverage inside most buildings is awful. Verizon had much better coverage inside buildings and in rural areas. I guess I will have to be patient and give them another year. Though at half the cost of Verizon, I can wait an extra year or so.

    • TYLERDERK

      So I guess acquiring Metropcs and converting towers to work with T-mobile phones
      Having a 4 Billion dollar roaming agreement with ATT&T as well as other partnership agreements when roaming updating entire network .
      Does that sound like a company that isn’t building they are growing fast.

      • Paul

        I am not trying to come down on T-Mobile. I said I am mostly happy with them but they have serious coverage issues compared to Verizon. Verizon had decent speeds even in rural areas of my area. T-Mobile often can’t even get a connection for data or it is so slow, not worth it in rural areas. Also, Verizon worked even inside elevators of buildings. I’ve never had a signal inside any elevator in a building with T-Mobile so far. They should be working more on coverage than increasing speeds in areas that already have good coverage. Most folks would rather have better coverage and sacrifice a few MB of data speeds, if they had to choose. I am willing to give them 2 years to see if this improves, if not, I have to go back to Verizon.

        • TMobile Is Better

          I don’t know where you live. I have T-Mobile and I have much faster speeds then Verizon. I live in Dallas Area. My brother has Verizon and can not use his pone in my house. I get coverage in my house. People always say, “VERIZON” has service everywhere. NOT TRUE.. AT&T doesn’t have coverage everywhere. Its all depending on the device etc. I get 34MB LTE download and 14MB Upload on T-Mobile LTE.. Verizon is only getting 14 down and 6 up… So tell me how Verizon is better. I guess for the smart people out there.. Try it and see if it makes a difference for you in your life. Go to a TMobile store and test your speeds vs your other carrier speeds. Lets see what happens. Also note that Verizon is DIGITAL ANALOG and T-Mobile is CDMA.. 2 different technologies. T-Mobile wins hands down in DFW area…

        • Paul

          My main complaint is COVERAGE not speeds. I can’t speak for all areas but in New Jersey in the rural areas T-Mobile is awful. Verizon is consistently reliable throughout out entire State. You go outside of Philadelphia area on the AC XWY and T-Mobile dies to barely nothing. I have never had that problem with Verizon. I am using an S3 as well. T-Mobile is often quicker than Verizon but their coverage is lacking especially in more rural areas in New Jersey at least. T-Mobile LTE is quicker than Verizon in my area, but Verizon is more reliable for coverage statewide. That’s all.

        • Gabe

          It’s very true about coverage. It’s not on par with Verizon. I have a Verizon company phone that gets clear signal in places my personal tmobile phone has none. Elevators are a big issue, but I can live with that. I don’t know why people jump all over whoever mentions tmobiles coverage issues. I understand some of you don’t encounter it, but some of us do.

        • Paul

          I can live with elevators too for most part, but I didn’t realize how spoiled I was with Verizon. It can be inconvenient walking inside a building and get in elevator and your phone dies. That never happened with Verizon, so I got spoiled and just have to change my practices with T-Mobile. No biggie.

        • Roger Sales

          This is something T-Mobile can’t do anything about. 1900/1700 bands can’t penetrate elevator walls period. If they land the 600 mhz auction, it will be possible for them to counter Verizon in these service consistencies.

        • Roger Sales

          T-Mobile could definitely use improvement in New Jersey to start(for example,when I go to in Vernon, the area is mostly deadzones, with some roaming by the lake for voice only. no texting.) that being said,whenever I go down to Tom’s River to visit friends I always have a reliable signal. I’d like to see it get better over time(and perhaps absorbing a carrier with experience in this sector like US Cellular could help). :)

          I think they’re at least heading in right direction….but I still need to see more.

        • Morton H

          I live in nj and I have great coverage and full lte 35 down and 15 up..Newark area..I haven’t had issues since I switched from AT&T.

        • BlackLighted

          Verizon isn’t DIGITAL ANALOG, Digital is what replaced Analog.
          They are CDMA, specifically CDMA 2000 1xRTT which is primarily for Voice, their 3G Data is CDMA EVDO which tops out at 3Mbps.
          T-Mobile is WCDMA, implemented as UMTS, HSDPA, HSUPA and HSPA+
          The LTE is functionally equivalent, except for the frequency it is being deployed on, Verizon on 700MHz, and T-Mobile on 1700/2100MHz AWS.
          T-Mobile is rolling it out as LTE-Advanced though, something Verizon doesn’t seem to interested in so far.

        • fsured

          They will when T-Mobile fully launches LTE-Advanced with theoretical speeds of over 100mbs. :)

      • NinoBr0wn

        He has a legitimate concern, and like he said, it’s been the biggest complaint for many people for years. It’s the one area that they have lagged behind in, and seeing as how they finally are on par with the competition with high end phone selection, and they have always undercut them in bill pricing, better coverage would be a HUGE plus for them. Simply improving the current footprint won’t be enough.

    • Huley Brown

      I agree. I am thinking of moving to AT&T because of coverage. I hope T-Mobile gets that part together.

  • GwapoAko

    Go Tmobile!!!

  • James Harding, Jr.

    Very happy that I stayed with T-mobile right now! I like Legere

  • William Burr Winans

    That is a great start for T-Mobile. I heard by 2015, 75% of T-Mobile towers will be 4G! If that were to happen that would really compete between AT&T and Sprint!

    • Afive

      Sprint? Lmao, you kidding right. Sprint is like dialup, even on LTE and Network Vision upgraded markets, terrible service!

      • Bryce

        That’s not true at all. I have a Sprint line that on LTE, regularly pulls 20Mbps down. Personally I think it’s overkill as anything on a phone shouldn;t require more than 5Mbps unless you are torrenting.

    • Bryce

      Except by 2015 99% of Sprint’s towers will have LTE-Advanced and small cells will be added indoors to provide better signal nationwide…

      • William Burr Winans

        Sprint has been claiming a lot of things just to get customers in and they end up being in a two year contract! T-Mobile is cheaper and no-contract! BTW! Did a speed-test back home and got 40Mbps Download and 16Mbps Upload!

        • Bryce

          I can quite easily pull the same thing on Sprint TD-LTE with even higher upload. Apparently next year they will carrier aggregate two 20Mhz carriers in TD-LTE to provide people with speeds faster than 100Mbps.

  • Karl Cramer

    Loving my Nokia Lumia 521 and the pre-paid pricing. I can’t believe how much I’m getting for so little money a month.

  • Whitney

    Go tmobile

  • David Lama

    I have been working for T-Mobile for a year and a half and all I want to say is in these last couple of moths that John Legere has been CEO we have changed so much for the good. Verizon and At&t is copying our plans and our upgrade programs, and that’s saying something.
    T-Mobile for life