HALF MOON BAY, Calif.--T-Mobile US continued to roar ahead in terms of subscriber growth in the third quarter. T-Mobile also hit its year-end LTE coverage milestone of 250 million POPs a couple of months ahead of schedule. However, T-Mobile's earnings took a hit in the quarter, in part because of the surge in subscribers and higher expenses.
HALF MOON BAY, Calif.--T-Mobile US CEO John Legere said he is impressed by what Sprint CEO Marcelo Claure is doing to be aggressive and win back market share, but he warned that if customers flood onto Sprint's network and have a poor experience they will churn and never come back.
AT&T Mobility reported fewer postpaid subscriber additions in the third quarter than analysts had expected. Still, the carrier reported strong data revenue growth and said that customers buying smartphones via its Next handset upgrade plan accounted for half of all smartphone sales in the quarter.
Wireless carriers have always battled with each other to encourage customers to switch to a new carrier. But that fight is now starting to heat up in select markets across the country because of a confluence of network shutdowns, technology transitions and smaller carriers exiting the business. Although these market-by-market battles don't get much national attention, they're still worth watching--after all, millions of subscribers scattered across dozens of markets are up for grabs.
Verizon Wireless added more postpaid subscribers in the third quarter than financial analysts had expected, and the growth was again largely driven by tablet activations, not phones. Just as it did in the second quarter, in the third quarter Verizon relied heavily on tablet activations for the vast majority of its subscriber additions.
T-Mobile US is likely going to report very strong third-quarter results--and will continue its momentum through the fourth quarter thanks to the launch of Apple's iPhone 6 and 6 Plus, according to financial analysts.
T-Mobile US CEO John Legere dismissed all of the rumors surrounding the carrier's potential M&A activity as "craziness" and said T-Mobile would continue to try to grow organically.
Verizon Wireless is likely going to lead the pack in terms of postpaid net subscriber additions in the third quarter, according to a research note from financial analysts at Jefferies. However, the analysts expect AT&T Mobility and T-Mobile US to also perform well, though they expect Sprint will continue to struggle to gain traction with its new plans and promotions.
T-Mobile US added 760,000 branded net customers in the month of August, which was its best month ever in terms of postpaid net adds, according to CEO John Legere. The brash and outspoken T-Mobile chief said that while the company is open to a deal with another player to gain more scale, it has a great deal of momentum already.
Now that a deal between T-Mobile US and Sprint is dead, T-Mobile CEO John Legere is taking the gloves off and repeated his prediction that T-Mobile will surpass Sprint in terms of subscribers to become the No. 3 U.S. carrier by the end of this year.