T-Mobile US in its quarterly earnings report said its investment in 5G network and low-price strategy is gaining customers.
It has added 865,000 postpaid phone customers in the third quarter. This marks T-Mobile’s highest customer growth for the period in a decade.
More than 60 percent of new customers are opting for T-Mobile’s premium plans T-Mobile’s premium plans, such as Go5G Next and Go5G Plus, which include streaming services like Netflix.
T-Mobile’s strong customer growth is driven by its affordable 5G plans, which are priced lower than competitors AT&T and Verizon. Price of T-Mobile’s Go5G Next is $180 (taxes included) per month for three phone lines. T-Mobile’s Essentials is priced at $90 + tax per month for three phone lines.
T-Mobile raised its yearly forecast for postpaid net customer additions to a range of 5.6 million to 5.8 million, up from a previous estimate of 5.4 million to 5.7 million.
The company’s free cash flow for the third quarter hit a record $5.2 billion.
T-Mobile posted revenue of $20.16 billion (up 4.7 percent). Service revenue rose 5.1 percent to $16.725 billion.
T-Mobile’s Postpaid phone ARPU increased to 49.79 in Q3 2024 from 49.07 in Q2 2024. Prepaid ARPU decreased to 35.81 in Q3 2024 from 35.94.
Analysts, like Craig Moffett, attribute T-Mobile’s success to its “best-network-lowest-prices” strategy, which continues to drive growth in a competitive telecom market.
T-Mobile is leveraging its top-tier network assets, customer-centric approach, and technology leadership to maintain a competitive edge. It employs an AI-based Customer-Driven Coverage model to enhance network performance and satisfaction.
The company operates 5G stand-alone core with VoNR (Voice over New Radio) coverage, reaching over 300 million people, improving call quality and reducing latency.
As more phones support VoNR and four-carrier aggregation, T-Mobile is poised to further boost spectral efficiency and differentiate its network performance.
T-Mobile earned the title of leader in 5G availability for the fourth consecutive year in Opensignal’s 5G Global Mobile Network Experience report.
The company’s capital expenditure (Capex) is projected to be between $8.8 billion and $9.0 billion for the year, slightly adjusted from prior guidance of $8.7 billion to $9.1 billion.
Baburajan Kizhakedath
