For the longest time, T-Mobile was the third wheel of wireless carriers as it did everything the same as AT&T and Verizon, but without the excellent 4G coverage. That all changed earlier this year as the carrier became the "un-carrier" and got rid of contracts. It has also aggressively expanded its 4G coverage. All of this has culminated in the company having one of its best quarters yet.
T-Mobile released its second quarter earnings report today, and the carrier says that its new programs have paid off very well so far. The big news is that it has added 1.1 million new subscribers over the last quarter. It also reported 688,000 branded postpaid net additions - an improvement of more than 1.2 million year-over-year.
"T-Mobile's Un-carrier approach has clearly resonated with consumers. 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," said John Legere, President & CEO of T-Mobile. "We are just beginning and we will continue to apply this innovative thinking to the Un-carrier offers we create and to the internal operations of our company, which taken together are driving significant shareholder value creation."
One of the big events during T-Mobile's second quarter was the launch of the iPhone 5 on its service. The carrier says that iPhone sales accounted for 29 percent of its total sales. The Samsung Galaxy S4 did even better by selling 4.3 million units, or 86 percent of its total sales, during the second quarter.
In other news, T-Mobile said that it ended its second quarter with 44 million subscribers - an increase of more than 10 million. It only gained 1.1 million last quarter, so where did the other 8.9 million come from? If you recall, T-Mobile bought MetroPCS earlier this year, and that carrier's subscribers have now been moved over to T-Mobile's network.
As for the future, T-Mobile expects its EBITDA to be in the range of $5.2 to $5.4 billion for 2013. It also expects to gain between 1 and 1.2 million branded postpaid net addition this year as well.
T-Mobile isn't at the level of Verizon or AT&T just yet, but the carrier is quickly becoming a major player in the industry. Its influence has already been felt after the introduction of its Jump program, and other carriers may soon follow suit with their own "un-carrier" plans. Consumers certainly want to see it happen.