T-Mobile’s distribution strategy
T-Mobile (TMUS), the fastest-growing and third-largest wireless service provider in the United States, is continuing to expand its distribution footprint into markets where it has not historically had a presence. In 2017, the telecommunications company opened nearly 1,500 new T-Mobile stores and over 1,300 new MetroPCS stores.
According to T-Mobile’s management, of the 1,500 new T-Mobile stores that opened in 2017, about one-third opened in urban markets, about one-third opened in suburban markets, and the remaining one-third opened in greenfield markets. The company’s retail store expansion will be exclusively focused on greenfield markets in 2018.
T-Mobile’s revenue trend
T-Mobile believes that the expansion of its distribution footprint could help fetch new customers and subsequently boost its total revenue. T-Mobile’s total revenue rose ~8.8% YoY (year-over-year) to reach $10.5 billion in the first quarter.
In comparison, Verizon’s (VZ) wireless revenue rose ~4.9% YoY to reach $21.9 billion in the first quarter. AT&T’s (T) wireless revenue from its combined domestic operations rose ~1.5% YoY to reach $17.4 billion in the quarter. Meanwhile, Sprint’s (S) revenue from its wireless component fell ~4.6% YoY to reach $7.8 billion in its fiscal fourth quarter of 2017, which ended in March 2018.
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