T-Mobile’s focus on network enhancement
Customer retention is significantly affected by a mobile company’s network performance. Network improvement continues to remain a vital part of T-Mobile’s (TMUS) strategy. In 2Q17, T-Mobile reported a postpaid phone churn rate of 1.1%, compared with 1.3% in 2Q16.
T-Mobile continues to claim the fastest network in the United States (SPY). Management highlighted that the company’s network speeds improved after the telecom company went all-in on unlimited plans, while Verizon’s (VZ) and AT&T’s (T) networks slowed down after they introduced unlimited plans in 1Q17.
According to a FierceWireless report on September 29, 2017, “T-Mobile ads in recent months have cited crowdsourced data from Ookla and OpenSignal that indicate the carrier’s technology provides the fastest LTE[1.long-term evolution] data speeds. But Verizon challenged that claim through the National Advertising Division.”
According to RootMetrics’ RootScore report for 1H17, T-Mobile’s network performance followed AT&T’s, placing third in data performance and network speed in the United States. According to the same report, T-Mobile earned a score of 90.5 in network speed, in comparison to AT&T’s 91.4, Sprint’s (S) 78.2, and Verizon’s 92.9. T-Mobile didn’t win any RootScore Awards during the testing period.
Verizon secured first place in all six network performance segments: overall performance, call performance, network reliability, network speed, data performance, and text performance. Meanwhile, AT&T, Sprint, and T-Mobile secured second, third, and fourth place, respectively, in overall network performance.