T-Mobile Q2 Earnings Suggest Uncarrier Model Works

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T-Mobile has earnings information for the second quarter of 2014, and things are looking up. This quarter is the fifth quarter in a row with over 1 million total customer additions. In addition, T-Mobile reported record low churn (customers leaving the service) of 1.5%.

Other highlights of the report include 8% revenue growth year-over-year, and record mobile broadband (tablet) net additions of 329,000. A rundown of more numbers is included below.

  • T-Mobile reports revenue as $7.2 billion dollars, up 4.5% quarter-over-quarter and 8% year-over-year.
  • This is also the fifth consecutive quarter of growth in revenue service, up 2.8% quarter-over-quarter.
  • Customers are choosing lower ARPU (Average Revenue Per User) plans, but that is offset by a notable increase in customers.

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I've mentioned before that only time would tell if these "un-carrier" initiatives would bring in customers, and it looks like it is working. The question is whether the rest of the industry is paying attention. T-Mobile is making strong gains by giving its customers flexibility and a certain degree of freedom, but competing carriers have yet to embrace a similar model.

It also remains to be seen how T-Mobile's gains in the market will affect the in-process acquisition of T-Mobile by Sprint (which is currently owned by Japan's Softbank). The Wall Street Journal reported on Thursday that France's Iliad has made its own buyout offer for T-Mobile.

And all the while, T-Mobi

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Good for •T•••Mobile•

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