T-Mobile USA Gains Pre-Paid Customers For Seventh Quarter In A Row


T-Mobile USA recently announced its Uncarrier campaign, and so far it appears to be working. The wireless carriers Q1 2013 results show that, while the company is continuing to lose high-earning postpaid accounts, it has gained pre-paid customers for seven quarters in a row.

Revenues at T-Mobile USA hit $4.68 billion, a decline of seven percent from the $5.03 billion period during the same quarter 2012.

According to the financial report, pre-paid customer numbers increased by 202,000 subscribers while the company lost 199,000 branded postpaid customers.

While 3,000 additional customers may not seem like a big deal, it’s actually the first time since 2009. According to T-Mobile, total customer additions are up by 579,000.

T-Mobile also reports that service revenues decreased by 10 percent to $4 billion. The decrease in revenues was offset by higher revenues from the company’s equipment sales.

T-Mobile says that since April 12 it has sold approximately 500,000 iPhone 5 smartphones while adding another 100,000 pre-owned iPhones per month since announcing the “Bring Your Own Device” program.

CEO and President John Legere says of the company’s Q1 2013 metrics:

“Our first quarter operating metrics and financial results are showing positive impact from the changes we began making in the fourth quarter Things only get more exciting from here, having brought T-Mobile USA and MetroPCS together to create the wireless industry’s value leader and premier challenger.”

T-Mobile and MetroPCS merged on May 1 and results from that merger should be reported in the company’s next quarterly earnings report.

While we can’t be for certain what effect T-Mobile’s pre-paid movement will have on the wireless industry as a whole, it does appear that customers may be making the switch from contract plans to T-Mobile’s UnCarrier and pre-paid plans.

Do you think T-Mobile and its focus on non-contract plans is a move in the right direction?

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