Quantcast
Latest Stories

T-Mobile gains key customers for 1st time in years



NEW YORK – The iPhone and new pricing plans helped T-Mobile gain customers under contract plans for the first time in at least two and a half years, a major boost for a wireless carrier often dismissed as an afterthought in a market dominated by AT&T and Verizon.

Contract customers are the most lucrative for wireless carriers. T-Mobile US Inc., which has its headquarters in Bellevue, Washington, and is under the control of Germany’s Deutsche Telekom AG, added a net 688,000 contract customers in the April-June quarter, compared with a loss of 557,000 in the same period a year ago. In fact, it was the first gain since the fourth quarter of 2010, when T-Mobile started reporting comparable figures.

Part of the boost came because the carrier began selling Apple’s iPhone for the first time in April.

Although T-Mobile’s gains through the iPhone might suggest a one-time occurrence rather than a sustainable comeback, T-Mobile said the iPhone accounted for only 26 percent of smartphone sales in the quarter, excluding sales through MetroPCS, which merged with T-Mobile on April 30. Other phones did well, including Samsung’s Galaxy S4. The S4, which came out during the quarter, accounted for 18 percent of smartphone sales.

T-Mobile credited new pricing plans, known as Simple Choice, with attracting new customers. In March, T-Mobile dropped its conventional two-year service contracts in favor of selling phones with installment plans. The price for voice, text and data services fell to reflect the new installment charge for a phone. But once customers pay off the phone after two years, or for customers who already have phones, their monthly bill goes down.

“We are clearly hitting a cord with customers,” T-Mobile CEO John Legere said Thursday.

In afternoon trading, T-Mobile’s stock gained 71 cents, or 3 percent, to $24.72.

T-Mobile US Inc. is still the No. 4 U.S. carrier, even with the gain of 8.9 million customers through its April 30 merger with MetroPCS. The combined company had 44 million customers at the end of the second quarter. The T-Mobile side of the company gained 1.1 million customers, including the 688,000 contract customers. The remaining gains were wholesale customers, such as alarm systems and cellular services under third-party brands. Excluding MetroPCS, T-Mobile did lose a net 10,000 contract-free, prepaid customers, but the company attributed that to customers switching to the more lucrative contract plans.

T-Mobile gained 678,000 contract and prepaid customers combined, the strongest in four years. It said it expects to gain 511,000 to 711,000 additional contract customers by the end of the year.


Follow us on Facebook Follow on Twitter Follow on Twitter




Recent Stories:

F1 boss Bernie Ecclestone rejects bribery charges 3 mins elapsed Big Chill freezes Cafe France to arrest skid 4 mins elapsed 25 cops ordered relieved over links to drugs 17 mins elapsed Bloodied shirt, unwashed fork: JPII relics abound 25 mins elapsed 4 airline passengers from northern Mindanao cleared of MERS 38 mins elapsed Pacquiao has to go through PBA Rookie draft 52 mins elapsed Guiao summoned by PBA for name-calling incident 1 hour elapsed Metro Pacific acquires stake in Victorias 1 hour elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Apple , Business , iPhone , mobile phones , T-Mobile , technology



Copyright © 2014,
.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement Advertisement
  1. Mark Caguioa lambasts Ginebra teammates on Twitter
  2. ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  3. No truth to viral no-visa ‘chronicles’
  4. Nokia to be named Microsoft Mobile
  5. Senator wants to probe PH slow Internet connection
  6. Bam Aquino becomes Master Splinter’s son after Wiki hack
  7. Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  8. New York police Twitter campaign backfires badly
  9. PH has slowest internet in Southeast Asia
  10. Did Deniece Cornejo lambast Vhong Navarro on social media?
  1. PH has slowest internet in Southeast Asia
  2. Mark Caguioa lambasts Ginebra teammates on Twitter
  3. Netizens seethe over Aquino’s ‘sacrifice’ message
  4. Did Deniece Cornejo lambast Vhong Navarro on social media?
  5. Senator wants to probe PH slow Internet connection
  6. Facebook rolls out ‘nearby friends’ feature
  7. Nasa’s moon-orbiting robot crashes down
  8. Judge in Apple v. Samsung patent trial fed up with smart phones in court
  9. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  10. Nokia to be named Microsoft Mobile
  1. #RejectedBbPilipinas2014Questions flood Twitter
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens fall in love with Crimea prosecutor Natalia Poklonskaya
  4. Mommy Dionisia Pacquiao scores, takes over social media
  5. Nude and so dangerous
  6. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  7. Russia tries to curb Crimean prosecutor’s Internet fame
  8. Memes flourish after Pacquiao victory
  9. PH has slowest internet in Southeast Asia
  10. Netizens thank Capa for Lee arrest

News

  • 25 cops ordered relieved over links to drugs
  • Bloodied shirt, unwashed fork: JPII relics abound
  • 4 airline passengers from northern Mindanao cleared of MERS
  • Drilon denies involvement in pork scam
  • Complex health care system for California’s elderly and poor explained
  • Sports

  • F1 boss Bernie Ecclestone rejects bribery charges
  • Big Chill freezes Cafe France to arrest skid
  • Pacquiao has to go through PBA Rookie draft
  • Guiao summoned by PBA for name-calling incident
  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Lifestyle

  • Gongs and southern dances star in a workshop at San Francisco Bayanihan Center
  • This woman ate what?
  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • Entertainment

  • Smithsonian wants photos, videos for ‘Day in the Life of Asian Pacific Americans’
  • What Garcia Marquez left behind
  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Business

  • Metro Pacific acquires stake in Victorias
  • How ‘one percent’ economic elite was uncovered
  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Obama to visit Filipino soldiers in Fort Bonifacio
  • Fil-Am youth conferences unite under one theme
  • Embassy advisory: Filipinos still need visas to enter US
  • No travel restriction to Mideast, DFA clarifies
  • PH-HK relations repaired, but families of victims still being courted
  • Advertisement
    Marketplace