T-Mobile Anticipates Strong Q3 2018 Trends



T-Mobile’s postpaid phone net additions

T-Mobile’s (TMUS) strong momentum showed no signs of slowing down in the second quarter, with 686,000 postpaid phone subscriber net additions in the quarter compared to 533,000 in the previous year’s period. The company’s YoY (year-over-year) growth was primarily driven by continued growth in existing and greenfield markets.

During the Goldman Sachs 27th Communacopia Conference, T-Mobile’s COO, Michael Sievert, noted that in the third quarter to date, T-Mobile’s porting ratio was 1.83 compared to other wireless carriers. He added, “Same dynamics with all 3 players, AT&T and Verizon hovering up closer to 2 and Sprint lower.” The porting ratio is the ratio of net customer additions to net losses.

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T-Mobile’s postpaid phone churn rate continued to fall YoY in the second quarter. The telecommunications company reported a branded postpaid phone churn rate of 0.95% in the quarter compared to 1.10% in the second quarter of 2017. Lower churn helps mobile operators save on acquisition expenses associated with acquiring subscribers, which, in turn, helps them expand their operating margins.

Peer comparison of postpaid phone net additions

In the second quarter, Verizon (VZ) added 199,000 postpaid phone net subscribers, while AT&T (T) added 46,000 postpaid phone net customers. Sprint (S) reported 87,000 postpaid phone net additions in its fiscal first quarter, which ended in June.


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