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T-Mobile Is Planning New ‘Un-Carrier’ Moves in 2018

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T-Mobile’s “Un-Carrier” initiatives

T-Mobile’s (TMUS) current “Un-Carrier” initiative is helping to strengthen and re-build customer trust. The Un-Carrier program is driving subscriber additions for the telecom company. In September 2017, T-Mobile launched its latest Un-Carrier initiative, Netflix On Us, which provides every qualifying T-Mobile ONE family plan with free access to Netflix’s (NFLX) streaming service.

During the UBS Global Media and Communications Conference held on December 6, 2017, Braxton Carter, T-Mobile’s chief financial officer, was asked whether Un-Carrier initiatives would continue going forward. Carter reported that there are more Un-Carrier moves to come in 2018. He added, “We’re pursuing a strategy that continues to add value and differentiation to our consumers while executing to a generally stable ARPU. And economically, that is a much superior model given where we’re at today. We’re going to continue to be super innovative and competitive in the marketplace.”

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Positive impact of un-carrier initiatives

T-Mobile’s postpaid subscriber growth has significantly outpaced that of rivals in the saturated US wireless market. T-Mobile’s postpaid subscribers increased by a solid ~11.3% year-over-year (or YoY) to reach ~37.0 million at the end of 3Q17.

Meanwhile, Sprint’s (S) postpaid subscribers increased by ~1.3% YoY to reach ~31.7 million during the same quarter. Verizon’s (VZ) postpaid customers increased by ~1.4% YoY to reach ~109.7 million at the end of 3Q17. Additionally, AT&T’s (T) postpaid subscribers in its combined domestic wireless operations increased by ~0.1% YoY to reach ~77.4 million in 3Q17.

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