T-Mobile’s Prepaid Net Additions in 3Q15



T-Mobile’s prepaid net additions in 3Q15

In the last part of the series, we learned that T-Mobile (TMUS) had the highest YoY (year-over-year) growth in postpaid customers among the largest four US wireless companies in 2Q15. These wireless players include Verizon (VZ), AT&T (T), and Sprint (S). We also learned that T-Mobile is expected to have another solid quarter in terms of postpaid subscribers in 3Q15. Here, we’ll look at the prepaid segment of T-Mobile. In 3Q15, the customer growth in the prepaid segment could be higher than the YoY rise that the company witnessed in 2Q15.

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Customer growth

T-Mobile’s prepaid customers rose by ~5.9% YoY to reach ~16.6 million during 2Q15. As we can see in the chart above, the company added 178,000 prepaid customers during the quarter. According to the company, in 3Q15 the company had already witnessed, on a net basis, three times the 178,000 net prepaid additions it had in 2Q15 by September 18, 2015.

In terms of YoY comparison, these prepaid net additions, as of quarter to date until September 18, 2015, were also higher than what the company witnessed in 3Q14.

Prepaid net additions in 1H15

In 1H15, T-Mobile had prepaid net additions of 251,000. AT&T’s prepaid customer additions were ~429,000. Sprint had prepaid net additions of ~180,000. Meanwhile, Verizon witnessed net losses of prepaid customers during 1H15.

You may consider taking a diversified exposure to T-Mobile by investing in the iShares Russell 3000 ETF (IWV). The ETF had ~0.05% of its holdings in T-Mobile at the end of August 2015.


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