/// Amid Strategy Shift, T-Mobile Adds 1.1 Million Customers in Second Quarter

August 8, 2013  |  All Things Digital


T-Mobile US said late Wednesday that it posted its strongest customer growth in four years, adding 1.1 million customers during the second quarter, including 678,000 for its primary T-Mobile brand. The company said it now expects to gain between 1 million and 1.2 million T-Mobile brand customers this year, reversing several years of customer losses. “T-Mobile’s Un-carrier approach has clearly resonated with consumers,” CEO John Legere said in a statement. “By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers.” T-Mobile said it sold 4.3 million smartphones, representing 86 percent of phones, up from 71 percent a year ago. It’s been a time of great change for T-Mobile, which moved in March to do away with phone subsidies and long-term contracts and completed its MetroPCS acquisition in May . The company said it expects to end the year with between 60 percent and 70 percent of T-Mobile postpaid customers to be on one of the new-style unsubsidized phone plans. About half of such customers are on one of those plans now, up from 36 percent at the end of March. T-Mobile also plans to increase its spending on marketing and attracting new customers, majority owner Deutsche Telekom said in a press release announcing its own quarterly results. “We are in the middle of a massive turnaround in the United States and we want to carry on along this successful course,” Deutsche Telekom Chairman René Obermann said in a statement. “We are prepared to spend more on high-value growth this year than previously planned.” In recent days, T-Mobile US has expanded MetroPCS into new markets using the T-Mobile network and launched a promotion where all its phones are available for no upfront cost. Also in July the company announced its JUMP program that lets customers who pay $10 per month upgrade their phone as often as twice per year .

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Amid Strategy Shift, T-Mobile Adds 1.1 Million Customers in Second Quarter

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