T-Mobile’s 3rd quarter customer adds are “best ever,” revenues are up, but so are costs

T-Mobile’s 3rd quarter customer adds are “best ever,” revenues are up, but so are costs
T-Mobile, the current darling of the wireless industry in the United States, posted continued growth in its customer base with its third-quarter earnings statement, casting a shadow over the competition.

For the period ending September 30th, T-Mobile added a net total of 2.3 million customers to its ranks, bringing its whole subscriber base to nearly 53 million customers. To put that in perspective, 10 million of those additions occurred over the past 18 months.

T-Mobile’s growth is shaking the industry, AT&T and Verizon have taken notice, and Sprint is well on its way to being relegated to the “number 4” spot by the end of the year. T-Mobile is leading the way with pre-paid customer additions too, of which more than 400,000 were added last quarter. In equipment sales, 6.9 million smartphones were sold, over half-a-million feature phones, and a couple-hundred-thousand mobile broadband devices moved off the shelves too.

By nearly every measure, T-Mobile had gains in every category. Total revenues for the quarter were $7.35 billion. With the aggressive campaign to gain customers though came increased costs and increased churn, so while revenues were up, T-Mobile’s churn rate increased to 1.6%, well above AT&T and Verizon.

The average billing per user (ABPU) and average revenue per user (ARPU) is up, which is a good thing, but trailing a bit behind the competition. ABPU was up to $61.59, and ARPU edged up to $49.84. This is a reflection of the rapid adoption rate of the Simple Choice plans. With those gains came a modest income loss of $93 million. T-Mobile’s gains over the past year have outrun losses like this though, and as such, Team Magenta has increased its subscriber projections for the year significantly to 4.3 to 4.7 net customer adds, versus 3 to 3.5 million.

On the network front, T-Mobile announced that its LTE network covered 250 million people, achieving its goal for all of 2014.  That coverage will expand to cover 300 million over the next year.  Capital expenditures will continue to be dedicated to making use of its newly acquired 700MHz A-block spectrum, and existing PCS holdings.

source: T-Mobile



1. Mxyzptlk unregistered

Tmobile is on fire. Their CEO has been doing amazing work, best in the wireless business besides Mr. Cook of course.

2. ggudino

Posts: 12; Member since: Aug 25, 2012

Thats great for T-Mobile. Now if only they could start making some money.

7. remixfa

Posts: 14605; Member since: Dec 19, 2008

They are making plenty of money. They are running in the red because of the constant rampant expansion. That is only temporary. Once expansion slows, they will be well into the black Besides, as a consumer why do you care? The further in the black they are, the more they are taking from each user. Unless you have stock in Tmobile without being a customer, the last thing you should want is for your bill to keep going up to line their pockets. lol Either way, Tmobile is definitely doing things the right way. I remember when the value/simple choice plans first launched and people laughed. Who's laughing now? lol.

3. Captain_Doug

Posts: 1037; Member since: Feb 10, 2012

I just left T-Mobile(simple mobile). They just don't have the service coverage yet. Great thing about no contracts though is when they get better coverage I can switch back. PS, cricket doesn't suck now that at&t own them. Pretty slow service but it's good enough and well worth the price.

4. JMartin22

Posts: 2379; Member since: Apr 30, 2013

At least they're bringing some much needed competition. Data plan costs are simply uncompetitive in the US, compared to other countries in Asia.

5. memerandroid

Posts: 8; Member since: Oct 27, 2014

agree on that competition is always better for us consumers!!

6. cncrim

Posts: 1590; Member since: Aug 15, 2011

Keep Tmobile was the right choice for consumers.

8. Professor

Posts: 223; Member since: Aug 02, 2013

When T-Mobile quotes the amount of subscribers... Do they include those from Metro-PCS, or from those companies like Simple Mobile that pay T-Mobile for using their signal?

9. silencer271

Posts: 254; Member since: Apr 05, 2013

and yet cant improve coverage and still runs edge in many many areas.

10. JEverettnow

Posts: 228; Member since: Mar 11, 2013

Tmobile's advertising is doing them good. In the Sacramento area a lot of my friends complain of service completely cutting out when they go inside a building. Sprint is horrible here as well, but at least I have service indoors.

11. kevin91202

Posts: 642; Member since: Jun 08, 2014

PhoneArena really needs to hire native English speakers who can write properly. I'm not saying that the writing is atrocious, but there are certain elements of the writing style that are either strange or incorrect. Trust me on this...

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