Wells Fargo analyst: T-Mobile's pricing not negatively impacting profits

Wells Fargo analyst: T-Mobile's pricing not negatively impacting profits
Wells Fargo analyst Jennifer Fritzsche sent out a note to clients on Friday, telling them that T-Mobile should reach its EBITDA target of $5.6 billion to $5.8 billion for 2014. That includes Q4 EBITDA of $1.7 billion. Fritzsche obviously doesn't see the carrier's many innovations as having such a negative impact on the bottom line. The analyst noted that the launch of the Apple iPhone 6 and Apple iPhone 6 Plus was a major factor in T-Mobile's fourth quarter addition of 2.1 million net subscribers. She added that had the two new iPhone models not suffered supply issues immediately after their launch, the carrier would have had an even better fourth quarter in terms of subscriber additions.

Meanwhile, Credit Suisse expects Verizon to report 1.85 million net additions overall for the fourth quarter with  AT&T adding 850,000. The investment bank expects Sprint to add 250,000 net additions. The investment bank said that strong tablet and device growth helped both Verizon and AT&T. Both the number one and two carriers in the nation achieved strong subscriber growth despite a rise in churn.

Speaking of churn, Sprint CEO Marcelo Claure admitted that the mobile operator has the highest churn rate among the four major U.S. carriers, although December was a strong month for Sprint according to the executive. Claure added that the carrier lost fewer customers during the period. He added that in the last few days, Sprint ported positive against Verizon and AT&T in the postpaid sector. That means that it was taking away more customers from those rivals than the amount of subscribers it was losing to them. Against T-Mobile, it ported positive when prepaid was added.

source: FierceWireless



1. Fallen1

Posts: 288; Member since: Nov 14, 2014

The main reason I chose TMO over big red and blue is simple, they don't fully throttle your data after you pass 2.5GB, and may I say that I have 5 lines with 2.5GB of data for free and unlimited for my wife who averages 10-18GB a month

5. smacsteve

Posts: 86; Member since: May 16, 2012

Well it's nice that you don't think that T-Mo doesn't "throttle" your data after you pass 2.5 GB (which, btw T-Mo does if that's the plan you have) but you know what? Neither AT&T or VZN "throttle" your data either! If you've bought a 10 GB plan or whatever you shared data plan you have it's full speed ahead! Warp factor 9 Scotty!

2. npaladin2000

Posts: 165; Member since: Nov 06, 2011

"Against T-Mobile, it ported positive when prepaid was added." Meaning, against T-Mobile, it ported negative when prepaid wasn't added.

3. xtroid2k

Posts: 601; Member since: Jan 11, 2010

This is because T-mobile has not really changed business tactics. Just revamped marketing campaings and changed verbage. I will admit JUMP is a true innovation. I love T-mobile but recognize the marketing vs actual changed stratagy. They do throttle data by the way if you go over yoru allowance. However you do get a text message warning you of this. I have unlimited but my girlfriend had 2gb for awhile, so she learned the hard way.


Posts: 290; Member since: Dec 15, 2014


6. corporateJP

Posts: 2458; Member since: Nov 28, 2009

"T-Mobile's pricing not negatively impacting profits" Well...maybe not at T-Mobile, but it has a few other carriers clearly sweating. And...all those postpaid adds for Verizon...huh...too bad they're existing customers being force-fed tablets on add-a-line deals. $10 a month isn't a huge revenue generator, but that's okay...keep bullsh*tting your stockholders...

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