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T-Mobile gains customers in Q3 thanks to prepaid

Posted: , by Ian M.

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T-Mobile gains customers in Q3 thanks to prepaid
Usually when a company sees 186,000 customers jump ship from their service it was a disappointing quarter, but in T-Mobile’s case they still managed to gain 126,000 customers thanks to their no-contract offerings.

T-Mobile had 312,000 new prepaid, or no-contract, customers in Q3. With all of the new customers throwing funds in T-Mobile’s direction, they generated $4.67 billion in revenue over the quarter. However, they actually slipped slightly from the revenue that they had in Q2.

While they may have lost 186,000 postpaid customers, it is simply just a continuing trend of consumers taking advantage of the cheaper prepaid plans that T-Mobile has to offer. Back in Q2 they saw 281,000 customers get rid of their postpaid plans while 231,000 customers flocked to T-Mobile’s prepaid services.

Overall T-Mobile has 33.7 million customers which is an improvement over the 33.6 million that they reported last quarter. That keeps them in fourth place behind the nations other three major wireless providers. After Q3 last year T-Mobile had a customer base of 33.8 million so they have seen a slight decrease overall.

All in all, T-Mobile is still getting by despite the fact that consumers are starting to choose their prepaid services over the ball and chain. With the holiday season approaching rapidly there is no reason to think that they will not see even more growth in Q4.

source: TmoNews

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posted on 10 Nov 2011, 08:31

1. remixfa (Posts: 13902; Member since: 19 Dec 2008)


not a surprise considering how much they have been pushing the prepaid. What i see.. quite a bit.. is fed up ATT-iphone customers unlocking their iphone and picking up a tmo prepaid plan. I sell more prepaids with existing equipment than I do prepaids that buy new phones. 50 bux for unlimited everything on a national carrier is hard to pass up.

posted on 10 Nov 2011, 09:10

2. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


I have a g2x on tmobl $30 unlimited 4g and text and 100mins. And I love it.

posted on 10 Nov 2011, 10:27

3. bbonline (Posts: 38; Member since: 24 Feb 2011)


If the AT&T/T-Mobile deal isn't approved, I would not mind at all having another company buy T-Mobile. Think about it. It's going to happen anyway unless T-Mobile transitions to a TOTALLY prepaid carrier, like Metro PCS and Cricket. Just look at the last quarter's results...More gains in prepaid customers than postpaid ones.

Going back to square one....I'm actually more for T-Mobile to be bought, rather than it converting to prepaid. We need a company that is willing to invest HEAVILY in expanding T-Mobile's network. That's a big reason why T-Mobile isn't growing as fast as other companies. Once this happens, I really see T-Mobile growing at a furious rate.

Let all this happen for the sake of competition, please....

posted on 10 Nov 2011, 11:55

4. remixfa (Posts: 13902; Member since: 19 Dec 2008)


its not going to be converting to prepaid. Its trying to be a hybrid carrier. unlike VZW and ATT that scoff at prepaid customers, Tmobile (and sprint) have realize that there are a lot of people out there that are unwilling to or cant afford a 140 a month unlimited plan. with nearly 20% true unemployment in america, that is a huge opportunity to pick up business. Look at metro, they added nearly a million people last quarter. Those people are coming off of the big carriers looking for a deal. Tmo is offering big carrier service for those that want it, and metro style pricing for those that want that.

If they would just advertise better, they would do much better. the product is great.. especially for the pricing.

posted on 10 Nov 2011, 16:09 1

6. ardent1 (Posts: 1991; Member since: 16 Apr 2011)


T-Mobile can't compete because the parent company refuses to provide the necessary capital. The bottomline is T-Mobile just doesn't have the money to grow and as such, it's getting eaten alive.

I hope the ATT/T-Mobile deal goes through because it would salvage the T-Mobile network and put it to good use.

posted on 10 Nov 2011, 16:03

5. ardent1 (Posts: 1991; Member since: 16 Apr 2011)


T-mobile isn't the only carrier gaining customers due to prepaid. If you read the market surveys and look at the underlying trend, anyone can spot that consumers are unhappy being locked into an expensive 2-year contracts with onerous ETF's. With smartphones having minimum data fees, the carriers are just pushing their customer base to prepaid or non-contract service. I was talking to someone at Costco who was complaining his monthly ATT phone bill was $250 for a family of 4 and I explained with prepaid, he could cut that bill to $150 or less a month and that the $1,200 annual minimum savings easily outweigh the costs of buying new prepaid handsets and the ETFs -- meaning he still saves money in the end.

The punchline is that anyone can get a decent android smartphone for less than $150 - $200 whereas in the past consumers avoided the prepaid market because the phones were such crap.

posted on 10 Nov 2011, 16:39

7. bluechrism (Posts: 99; Member since: 09 Sep 2011)


Wonder how many customers are pre-paid becuase they vdon't want to get switched to AT&T if they sign a 2 year contract. If the deal falls, i bet there is bump[ in subscribers to post-paid, especially the value plans.

Also, Simple mobile providing excellent competiton on price in pre-paid. Would have switched by now, but dreading that one month where i have enormous bill due to paying postpaid for prior month and pre-paid for next at the same time.

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