T-Mobile proved to be a worthy competitor to Verizon. The company managed to attract a handsome new wave of 1.3 million customers in the last three months. This performance continued the 17th straight period with additions of more than 1 million customers. At least 800,000 of them entered the subscriber base as postpaid clients who are the most desirable class of customers a wireless company could ask for.
T-Mobile Intends to Build on Its Sotck and Subscriber Base Instead of Pushing Ahead with Sprint Merger Talks
Washington-based company, T-Mobile, is the third largest wireless carrier in the United States after Verizon and AT&T. However, its latest quarterly revenue reveals that the organization is on the right track. The revenue numbers increased 10% to $10.2 billion while profits topped 158% to $58 million.
On top of that, T-Mobile executives might have just confirmed rumors of a possible merger with Sprint. This news shook Wall Street from its roots, and shares value skyrocketed 2.9% to $63.78. T-Mobile CEO John Legere highlighted an interest his company has in Sprint Corp. On the other hand, Legere stated that the plans, for the time being, are that of consolidating the new influential position in the wireless industry.
“We know that Sprint needs to do something.”
The Wireless Industry Is Becoming More and More Challenging
Thanks to latest achievements, the fastest growing mobile carrier earned enough leverage to raise its forecast for customer base growth by the end of this year. Therefore, the company is looking at gaining 3 million to 3.6 million more clients this year while April expectations pointed at a range between 2.8 million and 3.5 million. On top of that, analytics confirmed that strategies to attract new customers such as price cuts, promotions, and giveaways are in fact generating positive returns.
However, the industry is on its way to more challenging territories. While T-Mobile won the price war so far, its rivals are starting to catch up with their own competitive discounts and unlimited data plans. A merger with Sprint Corp. might be the only way to gain a sustainable enough advantage in this race.
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