Despite T-Mobile's 'Never Settle' campaign, fewer Verizon subs ported to T-Mobile in Q2 than Q1

T-Mobile US (NYSE:TMUS) said that its "porting ratio" with Verizon Wireless (NYSE: VZ)--essentially the number of customers switching between the two carriers--dropped from 1.6 in the first quarter to 1.5 in the second quarter. That decline during the second quarter is notable considering in May T-Mobile launched its "Never Settle Trial," wherein T-Mobile is offering Verizon customers the opportunity to try T-Mobile's network and service for up to two weeks at no cost.

Although the carrier said the Verizon-to-T-Mobile porting figure has fallen slightly, T-Mobile's Mike Katz proclaimed the promotion an ongoing success. "It's been a really successful program for us," he told FierceWireless. "Our flows coming from Verizon are still really, really strong."

Katz, a senior VP and head of T-Mobile's advertising efforts, pointed out that Verizon's porting ratio to T-Mobile in the fourth quarter was 1.4, making the first and second quarter improvements over that figure. He also noted that T-Mobile's porting ratios with all of the nation's Tier 1 carriers remain positive--meaning that AT&T (NYSE: T), Verizon and Sprint (NYSE: S) are all losing customers to T-Mobile. T-Mobile is generally the only major carrier that reports porting ratios.

The slight decline in Verizon's porting ratio to T-Mobile between the first and second quarter stands in contrast to T-Mobile's reported porting ratios with other carriers. As BTIG analyst Walter Piecyk pointed out, T-Mobile's porting ratio with AT&T rose from 1.8 to 1.9 during the period and the carrier's porting ratio with Sprint rose from 2.45 to 2.50.

However, as industry analyst (and FierceWireless contributor) William Ho noted, Verizon's $10 for 10 GB promotion was a good defensive measure to keep loyalty and the address those who want both value, despite T-Mobile's "Never Settle for Verizon" campaign.

T-Mobile early last month extended its "Never Settle Trial" promotion through June 27. The promotion was supposed to run from May 13 through May 31. The promotion is a response to Verizon's recent advertising slogan that uses the "never settle" tag line, and implies that customers who choose the other carriers are settling for inferior network quality.

T-Mobile's Katz said the carrier continues to offer the "Never Settle Trial" to Verizon customers, and has not set an end date for the offering.

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