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T-Mobile's iPhone sale and merging with MetroPCS very kind to strategy as carrier adds 1.1 million customers in Q2 2013

News by Andrew Kameka on Thursday August 08, 2013.

t-mobile · carrier news · andrew kameka

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T-Mobile US has enjoyed a complete reversal of fortune and saw massive customer gains rather than its trend of massive customer losses. In its second quarter earnings for 2013, T-Mobile had a net addition of 1.1 million customers, including a 685,000 postpaid customer increase. The carrier had a net loss of 557,000 postpaid customers during the same period last year.

What's different about T-Mobile service now to explain the huge turnaround compared to 2012? It appears that "Un-carrier" strategy T-Mobile introduced earlier this year is paying dividends. Customers are embracing T-Mobile's lower prices more than they have in the past, strange considering that T-Mobile has long been the most affordable of the four major carriers. Other factors like merging with MetroPCS, adding the Apple iPhone, and simplifying unlimited rate plans appear to have combined to power T-Mobile's rebound. The iPhone accounted for nearly a third of all phone additions and upgrades last quarter, which amounts to 1.24 million of the 4.3 million smartphones sold during the period.

T-Mobile's earnings release notes that this is the company's strongest performance in four years. After hemorrhaging customers for several consecutive quarters, the carrier has finally managed to stop the bleeding by merging with MetroPCS and aggressively cutting prices. Revenues increased 27.5 percent year-over-year "primarily due to the inclusion of MetroPCS results for May and June 2013 and higher equipment sales due to record smartphone sales," according to the earnings report.

source: T-Mobile

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Andrew Kameka
Andrew is based in Miami, Florida.

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