Mobile Continues to see Strong Momentum in Q3 2016
This has resulted in massive iPhone 7 and iPhone 7 Plus sales, along with the gain of new subscribers at the company.
T-Mobile added about 753,000 monthly phone subscribers so far in the third quarter, leaving only half a month to reach the 899,000 average analyst estimate compiled by Bloomberg – and still shy of the 1.1 million gain a year earlier.
Comcast is to launch a mobile service in 2017 CEO Brian Roberts told the Goldman Sachs investor conference: “We believe there will be a big payback with reduced churn, more stickiness and better satisfaction”. Some of T-Mobile’s recent Un-carrier moves includes T-Mobile One, where customers can get unlimited data for just $70 per month. In addition to these, T-Mobile continues to see strong flows of new first time customers coming to market, customers adding lines to their existing accounts and to a lesser degree switching from brands other than the big 3. The carrier said it added almost 1.9 million total net connections during Q2, compared with 1.4 million net connection additions posted by AT&T Mobility, 585,000 direct net connections posted by Verizon Wireless and 377,000 net adds reported by Sprint.
T-Mobile also said that overall industry postpaid porting ratios are improving versus the previous quarter, including ports with each of the three major wireless carriers over the second quarter of 2016.
On Tuesday, T-Mobile backed its third-quarter and full-year financial guidance, saying its “Un-Carrier” program is resonating with customers. Figures indicate that more than 250,000 customers are from Verizon, nearly 400,000 from AT&T and 300,000 from Sprint in the third quarter. “Even with their ‘new” technology T-Mobile’s LTE network is still faster – just ask OpenSignal, Ookla or the FCC”. Not to mention T-Mobile Tuesdays has been a huge hit for the company.
T-Mobile US is also forging ahead with its 5G expansion plans wherein it has started higher speed tests with major equipment partners – Ericsson ERIC and Nokia Corporation NOK.
T-Mobile now has a Zacks Rank #3 (Hold).