T-Mobile loses more than half a million post-paid subscribers in Q2 2012

T-Mobile loses more than half a million post-paid subscribers in Q2 2012
T-Mobile USA just posted its numbers for the second quarter of the year and while net income dropped only slightly by 2.4%, the carrier lost a hefty 205,000 subscribers. T-Mobile lost 557,000 subscribers on post-paid plans, a huge loss covered only partly with 227,000 new pre-paid additions.

That shift to more pre-paid customers meant that T-Mobile had less total average revenue per user (ARPU). The ARPU grew slightly when looked in isolation at pre-paid and post-padi, but when you combine the two numbers, the lower revenue from pre-paid users starts to weigh more as they increase and the total drops.

T-Mobile said it’s investing strategically in the development of a 4G LTE network to help change that negative momentum. Earlier, the carrier said it’d spend nearly $4 billion on deploying an LTE network, $1.4 of them in the next two years.

source: T-Mobile




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16 Comments

1. Zayuh24

Posts: 149; Member since: Nov 21, 2011

Eh. Honestly, I'm considering buying the next Galaxy device from google and getting a sim to use with a Pre-Paid plan. I barely make calls, my job has free Wi-Fi, and I seldom use the net except for reading articles on Pulse.

8. JGuinan007

Posts: 699; Member since: May 19, 2011

do you mean Nexus from Google or Galaxy from Samsung?

14. Zayuh24

Posts: 149; Member since: Nov 21, 2011

I mean the Nexus from Google. Well, we can't say it's "from" Google because they don't take over the hardware (yet). The Galaxy Nexus was built by Samsung, as well as the Nexus S, but the Nexus One was made by HTC I believe. I just want a Nexus device because they have the best overall support, both officially from Google and unofficially from developers.

2. disneydad

Posts: 114; Member since: Mar 26, 2012

With Sprint, T-Mobile, MetroPCS, and Leap posting subscriber losses it looks like we will be seeing some merging and buyouts between the smaller carriers in the next 3 years as they all transition to LTE. These carriers cannot compete in postpaid if more of their business converts to prepaid. They would all benefit from the spectrum of each other while creating a better economy of scale. I wouldn't be surprised to the Big Two try to keep this from happening though.

3. ftyler223

Posts: 140; Member since: Aug 06, 2012

Disneydad I agree. I worked for T-Mobile for 3 years and had to leave because theyjust don't know what they're doing. They are literally barrying themselves. Idiots. I'm with big red now

9. JGuinan007

Posts: 699; Member since: May 19, 2011

I agree with you but it's funny you call them IDiots and Spell burrying BARRYING

10. g2a5b0e unregistered

Actually, it's "burying". Who's the idiot now?

16. ZayZay

Posts: 571; Member since: Feb 26, 2011

HAHAHA ZING!!!!

4. cornerofthemoon

Posts: 620; Member since: Apr 20, 2010

From what I read T-Mobile is in better shape than Sprint with their LTE rollout thanks to the windfall from the failed AT&T buyout. T-Mobile will have a broad launch next year while Sprint will still be launching LTE in a frustrating slow trickle.

6. disneydad

Posts: 114; Member since: Mar 26, 2012

I think the average American family is in better shape financially than Sprint. lol T-Mobile isn't going under anytime soon but with little to no growth their long term outlook is not rosy. I don't think LTE deployment is the answer to their problems. By 2014 every network should be converted to LTE. The carrier subscriber positions are pretty much fixed at this point since it is now a mature and saturated market. The only thing carriers are doing now is trading customers every 28 months. The smaller carriers don't have the network and financials of the big two and cannot compete long term with the bandwidth they currently possess. Bring on S-Mobile Metro Leap!! LOL

5. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

T-Mobile is the #1 carrier we get people ported over from, and 8/10 of the customers are leaving because they are upset with their service despite cost.

7. buggerrer

Posts: 306; Member since: Sep 21, 2011

I left T-mobile last week for Verizon. Was tired of how they f'd up the LG G2X. I'm loving the GSIII with LTE!

12. MozillaLover

Posts: 3; Member since: Aug 06, 2012

Just wait until you start getting $300 dollar bills every month with some BS charges.

13. greathero1

Posts: 584; Member since: Jun 13, 2008

I was definitely one of those upset with service despite the cost. After 3 years of waiting for better service, I had to leave last month. VZ is definitely miles better than TMobile. Data speeds are about 3x faster and voice coverage is far better than what I was used to in my area.

11. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

T-Mobile's problems are the lack of understanding of the American consumer; first, even if mobiles prices are more reasonable, no one wants to pay more for a subsidized phone. e.g. Samsung's S3 they want $279 after a fifty dollar rebate. Even though you end up paying more with the top two carriers length of contract. Secondly, have to wage a campaign of ads, just like the others. Thirdly, I know already, but they have to get the iPhone. For a minute, Verizon was just trying to compete without it, eventually end succumbing to the will of the masses. Before being critical, just look at the numbers, even if they added two million new subscriber to the ranks, the benefits. Honestly, no other phone is going to add 2M new in on quarter.http://www.phonearena.com/news/AT-T-adds-320000-new-subscribers-rakes-up-3.9-billion-in-profits-in-Q2-2012_id32597 http://news.cnet.com/8301-13579_3-57336772-37/iphone-4s-adding-most-new-subscribers-to-verizon/

15. PapaSmurf

Posts: 10457; Member since: May 14, 2012

I have T-Mobile in Chicago and honestly, I didn't see a difference between call quality from Verizon. I'm constantly pulling 20mbps with peaks of 28/29mbps. Guess hoe much I'm saving on my bill? $50+.

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