T-Mobile CEO appears to have given up on the postpaid crown as he talks up new categories
A year after he took over, T-Mobile has fallen further than its rivals.
The CEO has shrugged it off. | Image by Ars Technica
Since Srini Gopalan was appointed CEO last year, T-Mobile's stock has plummeted 25%. Meanwhile, Verizon is up 16% and AT&T has tumbled 10%. Subscriber growth has cooled, and Q3 churn is expected to tick up. Gopalan isn't worried, though.
Gopalan told Bloomberg he isn't making decisions based on short-term stock trends. He is playing the long game, which also entails roster changes to better align with the company's new direction.
For instance, Shell's former CFO Jessica Uhl is taking the reins from CFO Peter Osvaldik. Uhl brings 30 years of experience in leading complex businesses, scaling new ventures, and rolling out new technologies. She most recently oversaw GE Vernova's generative AI program.
With postpaid growth hitting a ceiling, the company is setting its sights on enterprise clients and home internet users.
Srini also doubled down on physical AI, a branch of AI that interacts with the real world. Some examples include robots, autonomous machines, and cameras that rely on real-time decision-making and action. T-Mobile has long held the view that telecom networks are central to physical AI solutions, which cannot rely on distant data centers alone.
Gopalan asserted in his latest interview that physical AI isn't "feasible without a wireless network connecting it," and the tech will enable the company to expand its business connectivity portfolio.
Then there's home internet, where T-Mobile went from zero to around 10 million household customers in just four years. The company is eyeing cable companies' 60 million internet customers as it makes fiber and 5G internet available in more locations.
The CEO continued to brush off Starlink, claiming customers don't want to pay an extra $10 for satellite connectivity. He declined to confirm or deny a merger with Deutsche Telekom.
The postpaid market has matured. As Verizon has demonstrated, growth is hard without taking a hit on Average Revenue Per Account (ARPA) and postpaid service revenue. While T-Mobile is still cheaper than AT&T and Verizon, its cheapest plan is more expensive than AT&T's and Verizon's entry-level offerings. Around 60% of its new customers opt for premium plans.
But while the company's feature-rich top-tier plans are a hit among new customers, price hikes on older plans seem to be driving some longtime customers away. Rather than patching that leak, Gopalan is turning his attention to new revenue streams. That's very telling.
Gopalan came from German parent Deutsche Telekom, which operated in a tapped-out market with brutal competition. That background is precisely why he got the top job.
Still, his recent comments are a sign that the explosive era of growth in the postpaid arena has come to a close.
Taking the long view
Gopalan told Bloomberg he isn't making decisions based on short-term stock trends. He is playing the long game, which also entails roster changes to better align with the company's new direction.
With postpaid growth hitting a ceiling, the company is setting its sights on enterprise clients and home internet users.
How the market reacts to any one quarter, frankly, is down to so many different things. And I’m not going to manage this company to a day or a quarter stock price. Obviously, creating shareholder value is central to the purpose of this company, but we take a much more thoughtful, long-term view of it.
Srini Gopalan, T-Mobile CEO, September 2026
What do you make of Gopalan's stance?
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New priorities
Srini also doubled down on physical AI, a branch of AI that interacts with the real world. Some examples include robots, autonomous machines, and cameras that rely on real-time decision-making and action. T-Mobile has long held the view that telecom networks are central to physical AI solutions, which cannot rely on distant data centers alone.
Then there's home internet, where T-Mobile went from zero to around 10 million household customers in just four years. The company is eyeing cable companies' 60 million internet customers as it makes fiber and 5G internet available in more locations.
We see, with time, this is not really going to be a differentiator. This is something that customers will come to expect as part of a standard cellular service.
Srini Gopalan, T-Mobile CEO, September 2026
Is Gopalan not even going to try?
The postpaid market has matured. As Verizon has demonstrated, growth is hard without taking a hit on Average Revenue Per Account (ARPA) and postpaid service revenue. While T-Mobile is still cheaper than AT&T and Verizon, its cheapest plan is more expensive than AT&T's and Verizon's entry-level offerings. Around 60% of its new customers opt for premium plans.
What else has T-Mobile been up to?
He might just know what he is doing
Gopalan came from German parent Deutsche Telekom, which operated in a tapped-out market with brutal competition. That background is precisely why he got the top job.
Still, his recent comments are a sign that the explosive era of growth in the postpaid arena has come to a close.
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