T-Mobile CEO Sievert reveals which of his rivals' customers he is gunning for
T-Mobile's top executive discusses what makes T-Mobile so special.
T-Mobile continues to keep on rolling, and this was confirmed by the release yesterday of the carrier's second quarter earnings report. Not only did the company set several Q2 records, but it also reported an all-time record $3.2 billion in net income. Among the new second quarter records set was one for the most important category of all. During the second quarter, T-Mobile added 830,000 postpaid phone net customer additions.
CEO Sievert sees the value of his T-Mobile shares rise by $5 million on Thursday
T-Mobile also raised its guidance for 2025, and that has led Wall Street to go, in the lingo of the pinstriped traders who work there, "Ape shit." Short sellers ran to cover, and combined with fresh buying, the stock soared over 6% by Thursday afternoon. T-Mobile shares are currently up $14 to $248 as I type this. No doubt that this market action pleases CEO Mike Sievert, who owns approximately 381,222 shares valued at more than $94 million. Today, the CEO has seen the value of his shares rise by more than $5 million.
Mike Sievert, CEO of T-Mobile. | Image credit-T-Mobile
Speaking of T-Mobile's top executive, during the company's earnings call on Wednesday, after the earnings report was released, the atmosphere was full of love and joy. Some of those good feelings were directed at T-Mobile customers. Sievert said, "The quality of our customers continues to improve at a rapid pace." And speaking of quality, the quality of the T-Mobile network was also discussed.
With accolades heaped on T-Mobile's network, most recently by Ookla with its Speedtest Connectivity Report for the U.S. during the first half of this year, Sievert knows exactly which of his rivals' customers he is going after. Read this and see if you can figure out the name of the T-Mobile competitor Sievert is talking about.
"This represents an enormous runway for us. Network perception has now become a major focus for us for a simple reason. There’s a massive opportunity from all those tens of millions of customers who went elsewhere in the 4G era, deliberately choosing what was then the best network. Well, there’s a new best network in America and you’ll be seeing us bring that message to consumers and businesses in really innovative ways. Our network lead continues to widen."
"Customers are paying less in real dollars than they were in 2019. They're having three times more data at four times faster speeds. That's the 5G dividend. Everybody's winning. But this industry is more financially successful than it's ever been. And those that say it's overheated on competition just have to look through to the facts.
-Mike Sievert, CEO, T-Mobile
If you said AT&T, go to the corner and stand there, looking at the wall, for the rest of the day. The rival carrier Sievert is talking about is Verizon. And things will only improve for T-Mobile. On August 1st, T-Mobile will close on its acquisition of UScellular's nearly 4 million customers, its retail stores, and 30% of its spectrum in the 600 MHz, 700 MHz A Block, PCS, AWS, 2.5 GHz, and 24 GHz (mmWave) frequencies. The executive said that the T-Mobile network will get better after the deal closes. T-Mobile will pay $2.4 billion in cash and assume $2 billion of UScellular debt to acquire its assets.
Sievert added that the new T-Satellite service is off to a great start. Over 250,000 emergency texts were sent during the floods in Texas.
Sievert explains what makes T-Mobile so special
Speaking with Yahoo Finance, Sievert was asked why T-Mobile isn't taking advantage of its success by raising prices. He stated that T-Mobile customers are moving up to pricier rate plans on their own. He said, "The highest rate plans we offer that are packed with the most value for customers, have doubled in their popularity over the past year. I mean, that's amazing. In one year, they've doubled in their popularity."
Before you T-Mobile customers get totally relaxed, Sievert isn't completely ruling out a rate hike. "We're open-minded about it over the long haul," he said, "But I'd much rather attract people up the rate card with fantastic value." He also said that in the past, consumers choosing a wireless carrier had to choose between choosing between the best network and the best value. He says that it is unprecedented that one company can offer both. Of course, he is talking about T-Mobile.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: