T-Mobile reaps the benefits of the Un-carrier program, earnings shoot up

T-Mobile reaps the benefits of the Un-carrier program, earnings shoot up
T-Mobile's pro-consimer initiative – Un-carrier – seems to be working out quite well for the company. After last year's launch of No Annual Service Contracts, JUMP! Upgrade program, and free data packets for tablets, the effort was further upgraded this year with "Contract Freedom" – a program that reimburses customers who terminate their contracts with other providers and switch to T-Mobile. To top it off, the operator has worked to rapidly grow its Wideband LTE and VoLTE services, with the latter now reaching nationwide coverage.

It seems all of these strides are paying off, as T-Mo's Q2 2014 earnings report is impressive, to say the least. With more than a million new postpaid subscribers, 579,000 of which are phone contracts, the carrier finished the quarter with more than 50 million subscribers and $1.4 billion in earnings, which is a steady 14.7% incease over last year's Q2.

source: T-Mobile via Endgadget

FEATURED VIDEO

20 Comments

1. naittosan

Posts: 239; Member since: Jun 28, 2014

Wish they had service in central Wisconsin.

21. JC557

Posts: 1917; Member since: Dec 07, 2011

If they keep it up then it would be wise for them to increase their coverage to pull people away from the larger carriers. Of course with increased coverage comes increased maintenance costs which may mean higher prices down the line. Still, I wouldn't hesitate to switch to them when they do expand.

2. cncrim

Posts: 1558; Member since: Aug 15, 2011

Innovation pay off, I"m happy for them.

3. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Everything I've been saying about T-Mobile has been coming true. They continue to keep growing and will eventually pass Sprint in subscriber base. :)

11. joe1blue

Posts: 169; Member since: Jul 25, 2013

I can't wait to see T-Mobile surpass Sprint it will be great!

18. zinger69

Posts: 86; Member since: Feb 13, 2014

Will be interesting when Softbank buys them.

22. nnjerzy

Posts: 126; Member since: Jun 19, 2013

hell yea Sony Zperia X2 LTE in jerzee and Im glad I made the switch

12. Mxyzptlk unregistered

T-Mobiles growth is faster than Sprint's data.

4. CALL-151

Posts: 11; Member since: May 15, 2014

I am a little nervous about the projected deal with Sprint.

19. npaladin2000

Posts: 165; Member since: Nov 06, 2011

Given what Legere said, I bet Sprint is a little nervous too. Mostly because it might not happen if things keep going as they are.

5. xtroid2k

Posts: 601; Member since: Jan 11, 2010

I believe tmobile will be the new vzw in 5 years minus the bs

16. Gdrye

Posts: 111; Member since: Jan 02, 2012

whoa now!! im glad for t-mobiles growth, but they have WAAY more than 5 years to catch verizon, and AT&T for that matter, they are still gaining a lot of subscribers, even AT&T added more post paid cell phones than T-Mobile..lets say if it happened it will take a lot more than 5 years

6. Slammer

Posts: 1515; Member since: Jun 03, 2010

Earned? If a person earns $100,000 a year, it doesn't mean that person has all that money to play with. What about expenditures? These companies are great in skewing numbers for a positive view. According to my paycheck, I earned $------- last quarter. I would love to have kept all that money. Unfortunately I have car payments, two mortagaes, grocery bills, utility payments, etc. John B.

8. Salazzi

Posts: 537; Member since: Feb 17, 2014

Don't be a moron, John fricking B. Look at their financial report if you have reservations. That 1.4 billion is in real earnings. Their total Revenue was $7.1 billion and they spent $940 million on network modernization and expansion. Their revenue grew 35% from Q1 2013. From last quarter, their profits grew almost 45%.http://investor.t-mobile.com/Cache/1001189348.PDF?Y=&O=PDF&D=&fid=1001189348&T=&iid=4091145

7. joey18

Posts: 648; Member since: Jul 20, 2010

i like t mobile but the big problem here in the bay area so many places is out of service and sometimes w got frustrade

9. Augustine

Posts: 1043; Member since: Sep 28, 2013

Meanwhile, yesterday Sprint reported financial and customer losses...

10. youlookfoolish

Posts: 192; Member since: Dec 14, 2012

Wrong, Sprint lost customers but turned a profit.

13. JayFiveAlive

Posts: 67; Member since: May 30, 2014

Very conflicted on the possible Sprint/T-Mobile merger. If it doesn't go through, on the one hand T-Mobile gets a few more billion $ and increased spectrum to expand their network and they may very well be a true contender (though this reports suggest they are becoming that anyway on their own...). Sprint may die off if the deal does not go through, though they did have their "biggest earnings in 7 years." On the other hand, if it does go through Sprint could possibly jack things up for T-Mobile customers? Maybe not, who knows. They would certainly be a contender against VZ and AT&T if they merge... I just hate Sprint so much, it was like a dream come true leaving them. I like what T-Mobile is doing and hope they continue.

17. Gdrye

Posts: 111; Member since: Jan 02, 2012

you have a point, but i guess im more of the glass is half full on that merger, dont look at sprint, they dont own sprint no more, you have to look at soft bank, they started a price war in japan and promise to do so here in the states, i think the merger will be great, and it was already said ledger would become the CEO of the acquisition, im sure his pay checks will be a lot more also

20. zinger69

Posts: 86; Member since: Feb 13, 2014

That's an interesting point. Everyone keeps talking about what T-Mo will do.The question should also be, what will happen to Sprint if this merger falls through? Will they just keep puttering along hemorrhaging customers and market share. Or will Softbank determine that it's just not worth the money propping up Sprint and just cut their losses and sell them? I would think Sprint's spectrum holdings would fetch a pretty penny on the open market.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.