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:

Filipino rock icons to hold silent concert 17 mins elapsed More legal woes for Cedric Lee 23 mins elapsed NATO ups military presence amid Russian threat 36 mins elapsed Netizens welcome Japan’s visa-free travel plan 46 mins elapsed Russian economy hit by Ukraine turmoil 49 mins elapsed DOH issues official statement on confirmed case of MERS-CoV 52 mins elapsed Tenacious Iran frustrates Qatar to retain Asian Club volleyball crown 56 mins elapsed Visa-free travel by Filipinos to Japan still a proposal 59 mins 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

News

  • More legal woes for Cedric Lee
  • NATO ups military presence amid Russian threat
  • DOH issues official statement on confirmed case of MERS-CoV
  • Aquino to stay at home during Lenten holidays
  • Man charged with hoax near marathon finish line
  • Sports

  • Tenacious Iran frustrates Qatar to retain Asian Club volleyball crown
  • Floyd Mayweather is ESPN’s top-paid athlete
  • Pistorius trial: Judge sets 2-week adjournment
  • China, Taiwan rout foes for 3rd, 5th places in Asian Club volleyball
  • Ginebra’s new import Freeman arrives, makes PBA return vs ROS
  • Lifestyle

  • Are your favorite malls open this Holy Week break?
  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Entertainment

  • Filipino rock icons to hold silent concert
  • Mommy Dionisia Pacquiao’s greatest hits
  • Deniece Cornejo posts bail—report
  • Miley Cyrus hospitalized, cancels US concert
  • Otaku Summer Jam 2014: Summer’s hottest J-rock/Cosplay event
  • Business

  • Russian economy hit by Ukraine turmoil
  • PSEi firms up ahead of Lenten break
  • I-Remit teams up with Lakhoo for remittances from Oman
  • Megawide nets P1.4 B in 2013
  • Longer TRO sought on rate hike
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • We may never know
  • Couple of things
  • Mommy D’s magic
  • Stop bizarre and bloody Good Friday rituals
  • Holy Week taboos
  • Global Nation

  • Netizens welcome Japan’s visa-free travel plan
  • Visa-free travel by Filipinos to Japan still a proposal
  • Visa-free travel to Japan could boost tourism
  • 2 PCG men ordered arrested over Balintang Channel shooting
  • US Embassy closed on Holy Thursday, Good Friday
  • Advertisement
    Marketplace