T-Mobile puts the blame for its anemic prepaid growth on AT&T (updated w/ AT&T statement)

T-Mobile puts the blame for its anemic prepaid growth on AT&T (updated w/ AT&T statement)
UPDATE: AT&T sent out an official statement on the T-Mobile CFO's deductions:



T-Mobile posted a very good last quarter, but noted a stark decrease in prepaid subscribers, pretty unusual for the Un-carrier. The user base for its prepaid offers increased with 149,000, a far cry from the 260,000 posted in Q3. Compare that to the sequential growth in postpaid subs, from 595,000 to 891,000, and you'll see what got T-Mobile worried, not to mention the fall from 541,000 net prepaids in Q4 2016.

The Un-carrier parsed the stats, and found out that the culprit for the nosedive in prepaid subscriber growth was... AT&T. At the time, AT&T was running a clever bring-your-own-device (BYOD) promo in select areas, aiming to simplify the porting process for switchers that come from another carrier. BYOD campaigns don't require such stringent financial history checks like buying phones on installments, as there is no credit extended, just prepaid monthly plans that can be cut without loss at any time, if the user stops paying.


That's the analysis that T-Mobile's CFO Braxton Carter put out at an investor conference yesterday, hinting that things with AT&T's miraculous 329,000 post paid subscriber growth after a few quarters of losses, may not be as rosy as they seem. In fact, the CFO claims that the carrier's porting ratio against AT&T and Verizon has since increased significantly, to 1.7 net adds for each subscriber lost, so we can't wait to see the Q1 results reported by all carriers.

source: MWL

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8 Comments

1. tokuzumi

Posts: 1929; Member since: Aug 27, 2009

"We didn't do as well as we hoped. It was our competitor's fault. We were hoping they wouldn't compete."

8. turboC6

Posts: 89; Member since: Feb 19, 2018

I left Verizon for Sprint after 14 years. I just left Sprint for T-mobile after 12 years. I hope T-mobile and their 2 unlimited lines for $60 are great for us.

2. Paximos

Posts: 283; Member since: Jul 26, 2012

Aah, competition sucks.

3. jjface

Posts: 250; Member since: Jun 07, 2017

It might just be because their own prepaid offering sucks

4. cncrim

Posts: 1588; Member since: Aug 15, 2011

Competition good for free market and consumers as hold, but everything has cycle.

5. JMartin22

Posts: 2372; Member since: Apr 30, 2013

T-Mobile faces more uphill battles the more their established competitors reach parity with their service value offerings.

6. gamehead unregistered

Im an at & t prepaid user. I have no complaints

7. therealestmc

Posts: 679; Member since: Jul 23, 2012

I have been with Straighttalk fir a year and never looked back.

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