T-Mobile reports Q3 2016 results, including 2 million customers added

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UPDATE: T-Mobile CEO John Legere teased that a new Un-carrier move will be announced before T-Mo’s next earnings call. T-Mobile’s Q4 2015 earnings were announced in mid-February, so the next Un-carrier move could come sometime before mid-February 2016.

T-Mo also said today that there will be multiple devices with 4×4 MIMO support released in 2017. 

 

After previewing its Q3 2016 results last month, T-Mobile today released its full third quarter earnings report.

T-Mobile added 2 million new customers in the third quarter of 2016, including 851,000 branded postpaid phone adds. Postpaid phone adds were up from Q2 2016, when T-Mobile had 646,000 postpaid phone adds. T-Mo attributes that growth to the launches of T-Mobile One and the iPhone 7 as well as prepaid customers moving to postpaid.

T-Mobile’s postpaid churn for Q3 2016 was 1.32 percent, up from 1.27 percent in Q2 2016 but down from 1.46 percent in Q3 2015.

At the end of Q3 2016, T-Mobile had a total of 69.4 million customers.

Turning to financials, T-Mobile posted $7.1 billion in service revenues and $9.2 billion in total revenues, both of which were up year-over-year. T-Mobile’s net income for Q3 2016 was $366 million, up from $138 million in Q3 2015.

T-Mobile today also gave an update on its network. T-Mo’s 4G LTE service covers 312 million people, while Wideband LTE coverage is currently available to 231 million people.

Extended Range LTE (700MHz) is available to more than 225 million people, and T-Mo is building on that number by closing on transactions in Q3 with plans to close on more in Q4. Those deals will give T-Mobile another 47 million POPs of low-band 700MHz spectrum holdings. T-Mobile has previously said that it was acquiring 700MHz spectrum in cities like Chicago, Nashville, Salt Lake City, and Columbus.

Here’s T-Mobile CEO John Legere on these Q3 2016 results:

“That’s 14 quarters in a row that T-Mobile has won share from the competition. The Un-carrier is delivering. We took share and grew our customer base while producing both financial growth and shareholder value. Most importantly, we are delivering results for both customers and shareholders alike.”

T-Mobile looks like it had itself a nice Q3 2016, posting growth in postpaid and prepaid customers, revenues, and lowering churn year-over-year. Meanwhile, T-Mo is closing 700MHz deals to gain more spectrum for its Extended Range LTE coverage, which is exciting news for existing customers, especially as the 600MHz auction continues its back-and-forth.

T-Mobile will hold a conference call to discuss its Q3 2016 earnings at 10:00 am ET today.

Source: T-Mobile

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  • Acdc1a

    But I thought T-Mobile One was going to doom customer additions. Wasn’t that the consensus here?

    • Fabian Cortez

      It absolutely was.

      T-Mobile One was such a terrible thing and the masses would start fleeing.

      Fear. Uncertainty. Doubt.

      • Acdc1a

        80% of adds are on this plan too…guess someone sees value in it.

        • Fabian Cortez

          Indeed.

        • Andrew Singleton

          disingenuous is an understatement

      • Javier

        Estas vivo hermano lol

      • Drewski

        I don’t think it was a bad idea. Perhaps make T-Mobile One cost 60 a month for the basic T-MobileOne plan. The Premium T-Mobile One plan should have costed at least 80 per month.

        • Fabian Cortez

          I guess I should have added an “/s,” for sarcasm, to the end of my comment.

        • Drewski

          It’s all good Brother. No worries. Once re-reading your sentence just now, should have told me about it being sarcastic like. I just never caught on to your expressive of writing at first, that’s all. Lol

    • Steven

      For people who care to get on a website like this and understand the intricacies of the plans, the old plans worked better. But in the eyes of the general public, “Unlimited for all” just sounds sexy and gets people in the door. They don’t quite realize they are over paying for what they may need and use, but it adds piece of mind for still cheaper than other carriers. I myself would end up paying more if I switch from my 6GB of Simple Choice at $80 for two lines.

      All in all, to us the change wasn’t great. So to answer your question, yes the consensus on here was that T-Mobile One was a bad idea. But in the eyes of the general public due to a lack of detailed understanding and a sexy slogan, it may turn out well.

      Marketing win for T-Mobile, cost efficiency loss for America. But hey, I got my Simple Choice, so who cares. As long as T-Mo keeps winning and broadening their footprint I’m good.

      • Stick and Stay…

        Well stated, well stated…I have a legacy plan that I enjoy and for now, I will stick and stay with the legacy plan .

      • Drewski

        I don’t think it was a bad idea. Perhaps make T-Mobile One cost 60 a month for the basic T-MobileOne plan. The Premium T-Mobile One plan should have costed at least 80 per month. The T-MobileOne would have been a great idea after all for everyone/general public, due to so many people worrying about data buckets/having to use wifi all the time. So to be fair everyone needs to start making use of this new standard one and premium one plus plans that they now have out in stores now.

      • Andrew Singleton

        i wouldn’t poke holes in ONE for its cost. 140 for 4 lines or even 70 for 1 line are competitive as hell for 26GB of smartphone data. 6gb would only save you $20 for 4 lines (while the promo exists) or $5 for a single line. sprint offers decent price points but the weakest network. the holes to be poked are, as you said, the drawbacks in throttled video and tethering, which we on this website love to dissect. i would estimate that 5% of the customers i see at my t-mobile store have ever turned on mobile hotspot.

    • kev2684

      I guess the general public is stupider than everyone thought.

      • Acdc1a

        Unlimited sounds quite good to the people constantly managing their bucket.

        • dtam

          Yeah, I suppose if you weren’t keeping track of what prices were then tmo one sounds good.

        • Acdc1a

          $140 monthly is really good for 4 lines. $160 was probably to high, hence the promotion.

      • gmo8492

        Well someone had to say it.

    • Adam

      Yes, I must now admit that I am too old to understand the wireless market, because I use less than a GB. I hope this post from my typewriter makes its way to the internet. I also now doubt my criticism of AT&T abandoning wired internet.

    • Will

      Just tossing some info here from Ericsson.
      According to them the average smartphone in North America uses 3.7GB of data monthly as of June 2016. In 2014 it was 1.7GB. http://www.ericsson.com/res/docs/2016/ericsson-mobility-report-2016.pdf and http://www.fool.com/investing/general/2015/01/24/the-average-american-uses-this-much-wireless-data.aspx
      By 2021 that’s expected to go up to 22GB. From their estimates it’s almost ALL the usage growth in the industry. Standard voice and SMS not growing nearly as fast. According to a few articles I’ve read by next year that average could be up to 6GB or more.
      T-Mobile isn’t targeting the low end data users with this plan. They’re going after the people who are heavier users.

  • kev2684

    Waiting for T-Mobile to deploy Band 12 LTE on Continuum 700 areas… particularly Jacksonville area…

    • queenren

      Thank you! I’m patiently waiting in Jacksonville as well.

  • Bradley Karas

    What about MIMO and QAM? Thought we’d see it by end of October

    • SirStephenH

      QAM is almost fully deployed and I believe they’re still on track to complete the rollout by the end of October. I don’t believe they actually gave a time for the 4×4 MIMO rollout to be completed but it is underway. I think that you still need an S7 or S7 Edge to take advantage of both of these technologies as no other phones sold by T-Mobile currently support them.

      • Bradley Karas

        Actually the V10 supports it as well…the V20 is capable thru a software update as all the new phones with snapdragon 820 support it. Both were supposed to be deployed by October 31 via their press release.

        • SirStephenH

          Didn’t know about QAM on the V10 but the V20 isn’t officially released on T-Mobile yet so I didn’t include it.

          4×4 MIMO is only currently supported on the S7s though. The 820 and above supports it but it requires the manufacturer to squeeze in more antennas to actually be able to use it. With manufacturers obsessed with size I wouldn’t expect this to be commonplace soon.

          The bigger point was that you likely wouldn’t see a difference without a new phone unless you owned an S7.

        • Bradley Karas

          T-mobile told me V10 supports it, LG and T-Mobile told me the V20 will via software update. I’ve had the v20 since last week…it’s crazy fast already speeds of 125 down and 30 up

        • Kaulana1989

          LG V10 does not supported it only has a cat 6 LTE modem phones that can support the new technology must have a X12 LTE modem cat 12

        • Bradley Karas

          I’m just repeating what T-Mobile twitter rep told me…but makes sense now that I think about it and reading about the Snapdragon 808 vs 820. It really doesn’t matter I guess if its QAM and 3xCA…its a moot point till they actually send out the update.

        • Kaulana1989

          T-Mobile representative can be misleading with information they are often in the Philippines Snapdragon 808 LG V10 only has a cat 6 LTE modem that can only go up to 300 megabytes per second download and 50 upload with two carrier aggregation

      • samsung freud

        Yes, there is another phone with MIMO, it’s the galaxy note….nevermind..

  • The Waz

    waiting for Band 12 LTE in chicago….

    • Elier Ruiz

      Same here.

    • The Waz

      Emailed John Legere, and contacted me saying that Band 12 in Chicago will be rolled out by end of spring 2017.

  • Moe

    That’s big numbers. Large majority probably have to rely on WiFi calling cause the network is so inconsistent.

    • SirStephenH

      WiFi calling only works when you stay within the limited range of the router so that wouldn’t help the vast majority of people over the vast majority of time. Try again.

    • Lord chanka

      Or, large majority is fine and only a small percentage actually have issues with service.

  • SirStephenH

    “T-Mobile CEO John Legere teased that a new Un-carrier move will be announced before T-Mo’s next earnings call.”

    I wonder what it’ll be…

    Unlimited data on pictures…but they’ll be resized to 64×64?

    Unlimited data and speeds on ads?

    Free self lobotomy kits for those still planning on keeping their Note 7s?

    • Un-Carrier Move

      Great Sense of Humor, LOL, LOL !!!

    • Critic4U

      They forcefully move everyone to their new T-Mobile one plan lol

    • Andrew Singleton

      jeez are you in a red board room right now? negative nancy over here

  • dtam

    guess I was wrong about what Tmobile One would do for sub adds.

    • Acdc1a

      Good that you can admit it. I’m on ONE and it’s useful for me especially considering 4 lines is $140. It’s also nice to know if I’m leaving town and need fast tethering it’s $25 for just that one month. HDMI out from my tablet looks OK even at 480p.

  • Bryant

    Alex, I think you mean the next un-carrier move could come sometime before mid-February 2017, not 2016. :)