T-Mobile will soon pass Sprint to become the number three carrier in the states

T-Mobile will soon pass Sprint to become the number three carrier in the states
Just two million subscribers separate T-Mobile and Sprint. Considering that T-Mobile added 2.3 million warm bodies during the third quarter, chances are that T-Mobile will soon become the third largest carrier in the states. That is quite an achievement for T-Mobile, which had 33 million subscribers as of the third quarter of 2012. T-Mobile CEO John Legere earlier this year, predicted that T-Mobile would leap frog over Sprint some time around Thanksgiving.

Sprint has been held back by troubles with its network, which has cost them subscribers unhappy with the service. T-Mobile has been using its customer-friendly UN-Carrier approach to add to its top-line while sacrificing profitability. But T-Mobile's profits will be growing in coming quarters, according to Deutsche Telekom CFO Thomas Dannenfeldt. The German telecommunications giant owns 67% of T-Mobile's shares.

The other day, we told you that T-Mobile's profit margins were the lowest amongst the four major U.S. carriers. This is part of Legere's strategy to focus on bringing in new customers. To do this, T-Mobile offers low cost data plans along with a limited amount of free data for tablets, and allows customers to stream music for free. T-Mobile has seen its revenue rise, but at the expense of profit margins. But eventually, this should lead to higher profits. Deutsche Telekom's Dannenfeldt says, "In the same way as revenue increases when the number of customers grows, so earnings will improve in the next few quarters as revenue rises."

Other Deutesche Telekom executives are pleased with the success of T-Mobile. Chief Executive Tim Hoettges added, "I am convinced that T-Mobile US will continue to be a source of great satisfaction for us."


source: Reuters, NASDAQ via AndroidHeadlines

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30 Comments

1. InspectorGadget80 unregistered

Big shock. At least their service is kinda better than SPRINT

15. a_merryman

Posts: 749; Member since: Dec 14, 2011

I have both. It certainly isn't better for me. Especially on this one small road called I-95 between any relatively large city -_- Great for when I travel out of the country and good in the city though.

30. techloverNYC

Posts: 601; Member since: Nov 20, 2012

I travel that road alot, I totally agree with for about 1 hour I will have no service on the road.

17. ldpantoja

Posts: 31; Member since: Oct 21, 2014

It's more than kind off better for me. I jumped from Sprint because it sucked in my area. It all depends where you're at. When I lived in Georgia Sprint was better. But where I'm at in Texas, Sprint sucks.

25. lsutigers

Posts: 832; Member since: Mar 08, 2009

Having used both, the only thing that T-Mobile does better than Sprint is data speeds, and Sprint is quickly closing the gap with Spark. When it comes to overall voice and data coverage Sprint absolutely blows T-Mobile away.

27. thxultra

Posts: 462; Member since: Oct 16, 2014

Sprint worked like complete crap for me. I had them for 4 months and couldn't handle there awful data speeds and I even live in a spark area. One thing I will give them is they had great voice service but there data network was unuseable and I live in Chicago were data should be solid. Doesn't surprise me one bit Sprint has the highest churn rate in the industry.

2. gregoryyy3 unregistered

I have faith in T-mobile!

3. Teejay1100

Posts: 115; Member since: Aug 16, 2012

John Legere!! Sprint's CEO would be wise to take some pointers

4. HASHTAG unregistered

Wow. I actually didn't think this would happen. Guess I was wrong.

5. eharris560

Posts: 78; Member since: Dec 28, 2012

That's what happen when you don't have phone Variety

28. corporateJP

Posts: 2458; Member since: Nov 28, 2009

"That's what happen when you don't have phone Variety and horrible coverage and penetration." *Fixed for missing information, but not capitalization.

6. mturby unregistered

i c sprint has managed to keep its customers.

7. mturby unregistered

where r those sprint customers coming from? cuz it has kept over 50 millions subscribers.

11. Planterz

Posts: 2120; Member since: Apr 30, 2012

Sprint is cheap(er), and there's a good chance that if you're employed by a large company that you can get additional discounts. It's also possible that Boost is included in these numbers (and if that's the case, MetroPCS should be as well, for T-Mobile). I don't know how they figure in actual MVNOs like Virgin or Straight Talk.

13. Planterz

Posts: 2120; Member since: Apr 30, 2012

Upon further research, I see that Virgin USA is actually owned by Sprint as well.

8. Planterz

Posts: 2120; Member since: Apr 30, 2012

It costs money to make money. Get band 12 up and running, and increase coverage. T-Mobile kicks the competition's ass, if you're covered. But their coverage map is a serious disappointment to anybody not living in a metro area, or has to travel between them. I live in a well-covered city, and literally underneath T-Mobile equipment (on top of my apartment building, a few dozen feet away), so obviously T-Mo is the choice for me. 250 gigs used this cycle, and counting. 25-40 Mb/s at home, 12-20 at the "worst" places. Verizon and AT&T can't compete with those speeds here, and Sprint is a joke. But if they want to be a real threat to Verizon and AT&T, they need more coverage.

9. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Must be a lot of big metro customers switching to T-Mo. Around here, only the city core is LTE. As soon as you are out a little way, it drops down to 2G. ATT is the only network that offers signal through the region. Even Verizon had a lot of dead zones which is uncommon.

12. Planterz

Posts: 2120; Member since: Apr 30, 2012

Where's that? I'm in Tucson, and indeed many people I know (myself included) have switched to T-Mobile because of higher speeds and better pricing. A year ago or so, T-Mobile sucked. They finally brought LTE here, put up a @#$%load of towers, and now PCMag.com rates them as the best (in Phoenix too).

16. Professor

Posts: 223; Member since: Aug 02, 2013

Actually T-Mobile phones drop to 4G or at the most 3G speeds (depending on the phone) but practically never to 2G when there is no 4G-LTE signal. The ones that drop to 2G when they don't have 4G-LTE signal are the AT&T and Sprint phones (although AT&T signal is one the best and this don't pass too much). I am not sure about Verizon phones but I also think they also only switch from LTE to 2G when they don't have an LTE signal.

18. khul00

Posts: 27; Member since: Sep 06, 2014

I work for tmobile. I have a 4g lte lg g2 with them. Ive seen my phone to go 2g.ive seen it go to 4g every phone does it. It depends on the coverage in the area not the phone.

20. Professor

Posts: 223; Member since: Aug 02, 2013

If you work for T-Mobile you should know that the speed you are going to get is directly related to the capability of the phone used. You cannot get LTE if you don't have an LTE capable phone. And you cannot get (T-Mobile) 4G if you don't have a HSDPA+ (42.2 Mbps) phone. So if you don't have a HSDPA+ capable phone what you probably will get is regular HSDPA (21 Mbps) 3G, or probably even worse... Edge signal!

22. khul00

Posts: 27; Member since: Sep 06, 2014

Thats obvious what im telling you is that tmobile doesnt have lte and 4g everywhere there are still many areas that they only have edge

24. Professor

Posts: 223; Member since: Aug 02, 2013

Yes. That's true. There are many places where T-Mobile has no signal at all... Not even to make or receive a phone call!

23. khul00

Posts: 27; Member since: Sep 06, 2014

Your saying at&t and sprint phones dont go to 3g which is not true ive witnessed it first hand

29. corporateJP

Posts: 2458; Member since: Nov 28, 2009

That's not true. We tried to switch and were 2G/EDGE in our entire area. They can call me back in a few years when they get service in our area that doesn't conjure images to me of neanderthals using clubs, fire, and round wheels for the first time....

10. bugsbunny00

Posts: 2266; Member since: Jun 07, 2013

rise tmo rise.

14. atlvideoguy

Posts: 74; Member since: Feb 24, 2012

And John Legere will shave his head to celebrate the milestone!

19. Professor

Posts: 223; Member since: Aug 02, 2013

T-Mobile is increasing the amount of subscribers but they don't seem to be coming from Sprint because Sprint has stayed steady around the 55 million subscribers in the last 4 QTRs. They probably jumping from Verizon or AT&T.

21. suneeboy

Posts: 201; Member since: Oct 02, 2012

Can't wait to leave T-Mobile and go to Straight Talk (AT&T). Just waiting for my unlock to go through. I'm in NYC and T-Mobile will drop a call at any moment. So many dead spots!!!!!!

26. Augustine

Posts: 1043; Member since: Sep 28, 2013

Why is TMUS low margin suggested to be a downer in a consumer website? TMUS should be lauded for offering a great value. I'm sick and tired of companies being judged by armchair investment advisors, in opposition to consumer interests, in websites that should champion the consumer.

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