T-Mobile Grows by One Million Net Customers with 5.6 Million in Smartphone Sales

T-Mobile has made a lot of changes this year. It appears that these changes are a move in the right direction. In August, T-Mobile’s second quarter results had the carrier adding 1.1 million subscribers. This continues into the third quarter.

For the second consecutive quarter T-Mobile has added more than one million net new customers. This also means that T-Mobile leads the industry in phone customer acquisition for the second consecutive quarter.

This figure includes 648,000 branded postpaid net customer additions. The breakdown is 672,000 total branded net customer additions with 648,000 branded postpaid phone net additions. This continues the strong momentum that was seen in the second quarter.

T-Mobile CEO and President John Legere, made the following comments: “T-Mobile's Un-carrier approach is resonating with consumers. We added more than 1 million customers and led the industry with 643,000 branded postpaid phone additions because we are fixing the things that drive customers crazy. Part of our customer momentum comes from the MetroPCS acquisition. With MetroPCS we are making great progress, including the planned additional expansion of the MetroPCS brand into another 15 additional markets by November 21. Our momentum is great and we have confidence that we can continue to deliver sustainable and profitable growth."

T-Mobile acquired MetroPCS in May of this year. In addition, it recently announced its “Un-carrier” plans, including Simple Choice and Jump. All these programs are designed to eliminate contracts and make it easier for customers to upgrade phones.

Another factor that can be considered when looking at T-Mobile’s momentum is the fact that this is the first year that it is selling iPhones. This combined with the new programs mentioned above has garnered a lot of interest for the company, gaining it over one million new customers.

Not only has T-Mobile gained new customers this quarter, it has also sold 5.6 million smartphone units. Although, in reporting its third quarter results, unlike last quarter, the company did not break down its iPhone sales figures.

According to T-Mobile, the adjusted earnings before tax and interest (EBITDA) is up by 6.2 percent quarter-over-quarter. This can be attributed to lower promotional expenditures compared to the fiscal second quarter. Total revenue rose by more than 7.4 percent. This is thanks to MetroPCS' addition to T-Mobile's finances from May. A spokesperson said that record smartphone sales also played a part.