iPhone, Uncarrier Strategy Help Push T-Mobile to Strongest Growth in Four Years
T-Mobile's recent 'bold' moves through its uncarrier strategy, along with announcing availability of the iPhone have given the carrier its largest growth in four years.
The carrier added a total of 1.1 million customers, including 688,000 postpaid net additions.
● 1.1 million net additions, an improvement of 1.3 million year over year (the carrier lost 200,000 customers in the same quarter last year)
● iPhone Sales Account for 29% since launch
● 4.3 Million Smartphones in Q2 2013 sold
● Record low postpaid churn of 1.58%
● 4G LTE Network ahead of plan with 157 million covered in 116 metro areas
● Rapid Progress with integration of MetroPCS
"T-Mobile's Un-carrier approach has clearly resonated with consumers. By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers," said John Legere, President & CEO of T-Mobile. "We are just beginning and we will continue to apply this innovative thinking to the Un-carrier offers we create and to the internal operations of our company, which taken together are driving significant shareholder value creation."
As of July 10, 2013, the Company unveiled JUMP! - a groundbreaking approach to more frequent phone upgrades and the launch of 4G LTE in 116 metro areas covering 157 million people. This far exceeded the stated goal of reaching 100 million people by mid-year. Cash capital expenditures for the second quarter of 2013 were $1.1 billion, in support of an accelerated network modernization program which is on pace to meet the previously stated goal of 200 million people with 4G LTE prior to the end of 2013.
On July 25, 2013, T-Mobile announced that less than three months after the business combination of T-Mobile USA and MetroPCS Communications was completed, it has doubled the MetroPCS brand presence across the country, bringing "Wireless for All" to 15 new markets. The Company will be offering its "Bring Your Own Phone" program to customers of the MetroPCS brand. MetroPCS customers can expect to experience speeds on average of seven times faster than those previously available. Additionally, the MetroPCS brand expanded its 4G smartphone portfolio with the introduction of the Nokia Lumia 521 and LG Optimus F3 in select markets.
The carrier's JUMP plan along with simplified family plans was announced last month and was the first carrier to provide a way for customers to enjoy new devices without waiting 2 years for their contract to run out.