Report: T-Mobile to report a rise in contract customers
T-Mobile US (NYSE:TMUS) has scheduled a press event later today in New York where it is expected to reveal, among other things, that it added contract customers in the second quarter for the first time in three years. The news is a key part of CEO John Legere's plan to turn the ailing operator around.
Last September, Legere unveiled the company's "un-carrier" strategy, which included the elimination of device subsidies. T-Mobile customers can either buy their smartphones outright for the full cost of the device or they can make a down payment and then pay for the remainder of the cost of the device in monthly installments. Additionally, customers can bring unlocked devices to T-Mobile.
In addition, T-Mobile announced last December that it would add the Apple (NASDAQ:AAPL) iPhone to its lineup of smartphones, which has helped the company broaden its appeal to more customers.
At the end of March, T-Mobile reported a net gain of 3,000 branded customers during the first quarter. The figure was notable considering T-Mobile reported a loss of 349,000 branded customers in the previous quarter and the loss of 262,000 branded customers in the year-ago quarter. Branded customers include both prepaid and postpaid customers who pay for service under the T-Mobile brand. At the end of the first quarter, T-Mobile counted a total of 6 million branded prepaid customers and 20 million branded postpaid customers.
Look for our coverage of T-Mobile's event in New York later today on the FierceWireless website.
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