T-Mobile US net subscriber growth continued in its most-recent quarter, including net additions of 2.4 million, the first quarter that T-Mobile US has added more than two million net additions.
Since launching its marketing assault on the U.S. mobile market, T-Mobile has had four straight quarters where its net additions have topped one million each quarter.
Since the U.S. mobile market is largely saturated, the obvious question is where those customers are coming from, even if some are tablet accounts, as is sustaining net subscriber growth at the other three national carriers.
In the first quarter of 2014, T-Mobile had 67,000 “mobile broadband” (not phones) branded postpaid net additions, principally composed of tablets, compared to 69,000 in the fourth quarter of 2013.
Importantly, T-Mobile US added 1.3 million branded postpaid net additions while also cutting its churn rate on postpaid accounts to 1.5 percent.
Revenue was up but earnings dropped 12 percent. That is the key strategic issue for T-Mobile US. Its strategy requires continued high market share gains to offset the high marketing costs and lower average revenue per account.
Essentially, T-Mobile is trading gross revenue and profit margin to gain market share. As always in such cases, the strategy can work so long as the company can grow its customer base fast enough that the extra customers compensate for lower average revenue per account.
Gross additions were 23 percent higher, quarter-over-quarter, and 136 percent higher, year-over-year. No other national U.S. mobile service provider is adding that percentage of new customers.
But gross revenue also was boosted by the acquired value of MetroPCS customers T-Mobile US gained by acquisition.
Service revenues for the first quarter of 2014 grew by 33.3 percent year-over-year primarily due to the inclusion of MetroPCS results for the full quarter, T-Mobile US says.
Service revenues increased by 3.3 percent quarter-over-quarter, even though T-Mobile US service plans now reflect adoption of plans with lower monthly service charges.
Branded postpaid average revenue per user (ARPU) decreased quarter-over-quarter by $0.69 or 1.4 percent to $50.01, an improvement compared to the quarter-over-quarter decline of 2.9% in the fourth quarter of 2013.
The issue, many would say is how long T-Mobile US can support such rates of subscriber growth.
T-Mobile US net subscriber growth continued in its most-recent quarter, including net additions of 2.4 million, the first quarter that T-Mobile US has added more than two million net additions.
Since launching its marketing assault on the U.S. mobile market, T-Mobile has had four straight quarters where its net additions have topped one million each quarter.
Since the U.S. mobile market is largely saturated, the obvious question is where those customers are coming from, even if some are tablet accounts, as is sustaining net subscriber growth at the other three national carriers.
In the first quarter of 2014, T-Mobile had 67,000 “mobile broadband” (not phones) branded postpaid net additions, principally composed of tablets, compared to 69,000 in the fourth quarter of 2013.
Importantly, T-Mobile US added 1.3 million branded postpaid net additions while also cutting its churn rate on postpaid accounts to 1.5 percent.
Revenue was up but earnings dropped 12 percent. That is the key strategic issue for T-Mobile US. Its strategy requires continued high market share gains to offset the high marketing costs and lower average revenue per account.
Essentially, T-Mobile is trading gross revenue and profit margin to gain market share. As always in such cases, the strategy can work so long as the company can grow its customer base fast enough that the extra customers compensate for lower average revenue per account.
Gross additions were 23 percent higher, quarter-over-quarter, and 136 percent higher, year-over-year. No other national U.S. mobile service provider is adding that percentage of new customers.
But gross revenue also was boosted by the acquired value of MetroPCS customers T-Mobile US gained by acquisition.
Service revenues for the first quarter of 2014 grew by 33.3 percent year-over-year primarily due to the inclusion of MetroPCS results for the full quarter, T-Mobile US says.
Service revenues increased by 3.3 percent quarter-over-quarter, even though T-Mobile US service plans now reflect adoption of plans with lower monthly service charges.
Branded postpaid average revenue per user (ARPU) decreased quarter-over-quarter by $0.69 or 1.4 percent to $50.01, an improvement compared to the quarter-over-quarter decline of 2.9% in the fourth quarter of 2013.
The issue, many would say is how long T-Mobile US can support such rates of subscriber growth.
T-Mobile US net subscriber growth continued in its most-recent quarter, including net additions of 2.4 million, the first quarter that T-Mobile US has added more than two million net additions.
Since launching its marketing assault on the U.S. mobile market, T-Mobile has had four straight quarters where its net additions have topped one million each quarter.
Since the U.S. mobile market is largely saturated, the obvious question is where those customers are coming from, even if some are tablet accounts, as is sustaining net subscriber growth at the other three national carriers.
In the first quarter of 2014, T-Mobile had 67,000 “mobile broadband” (not phones) branded postpaid net additions, principally composed of tablets, compared to 69,000 in the fourth quarter of 2013.
Importantly, T-Mobile US added 1.3 million branded postpaid net additions while also cutting its churn rate on postpaid accounts to 1.5 percent.
Revenue was up but earnings dropped 12 percent. That is the key strategic issue for T-Mobile US. Its strategy requires continued high market share gains to offset the high marketing costs and lower average revenue per account.
Essentially, T-Mobile is trading gross revenue and profit margin to gain market share. As always in such cases, the strategy can work so long as the company can grow its customer base fast enough that the extra customers compensate for lower average revenue per account.
Gross additions were 23 percent higher, quarter-over-quarter, and 136 percent higher, year-over-year. No other national U.S. mobile service provider is adding that percentage of new customers.
But gross revenue also was boosted by the acquired value of MetroPCS customers T-Mobile US gained by acquisition.
Service revenues for the first quarter of 2014 grew by 33.3 percent year-over-year primarily due to the inclusion of MetroPCS results for the full quarter, T-Mobile US says.
Service revenues increased by 3.3 percent quarter-over-quarter, even though T-Mobile US service plans now reflect adoption of plans with lower monthly service charges.
Branded postpaid average revenue per user (ARPU) decreased quarter-over-quarter by $0.69 or 1.4 percent to $50.01, an improvement compared to the quarter-over-quarter decline of 2.9% in the fourth quarter of 2013.
The issue, many would say is how long T-Mobile US can support such rates of subscriber growth.
Edited by
Maurice Nagle