T-Mobile Has Best Quarter in Eight Years, Adds 4.4 Million Customers in 2013

T-Mobile has announced its best quarter in eight years, adding 1.6 million new customers in the fourth quarter 2013. In 2012, the company lost 32,00 subscribers in the fourth quarter.

T-Mobile also noted they added 4.4 million customers in 2013, proving their 'Uncarrier' strategy is picking up.

Highlights include:
● Total net customer additions of 1.645 million, compared to 1.023 million in the third quarter of 2013 and a loss of 32,000 in the fourth quarter of 2012.


● Strong branded postpaid net customer additions of 869,000, compared to 648,000 in the third quarter of 2013 and a loss of 515,000 in the fourth quarter of 2012.

● Branded postpaid net customer additions of 869,000 include phone net additions of 800,000 and mobile broadband net additions of 69,000.

● Accelerating branded prepaid net customer additions of 112,000, compared to 24,000 in the third quarter of 2013 and 73,000 in the fourth quarter of 2012.

● Continued low branded postpaid churn of 1.7%, compared to 1.7% in the third quarter of 2013 and 2.5% in the fourth quarter of 2012.


T-Mobile today provided a preliminary view of key customer results for the fourth quarter of 2013, demonstrating continued strong momentum and positive customer response to its Un-carrier moves. The Company generated over 1.6 million total customer additions and reported strong positive branded postpaid net customer additions for the third quarter in a row, as well as continued acceleration in branded prepaid net customer additions and ongoing improvements in branded postpaid churn.

"Our Un-carrier moves have clearly upended this industry," said John Legere, President and CEO of T-Mobile. "Over the past 12 months, 4.4 million customers have come to T-Mobile in response to greater flexibility and choice. We have clearly struck a chord with customers and will continue to look for ways to expand on that in 2014."

T-Mobile expects to release full fourth quarter results on February 25, 2014.

In the fourth quarter, T-Mobile added 1.645 million customers, bringing its total base to 46.7 million across postpaid, prepaid and wholesale. This was the third quarter in a row that the Company has generated more than 1 million customer additions. In addition, the fourth quarter of 2013 had the most branded postpaid net customer additions since the fourth quarter of 2005.

T-Mobile also reported ongoing strength in its branded postpaid customer segment. Branded postpaid net customer additions were 869,000, which represents a 34% improvement compared to the third quarter of 2013. This was the third quarter in a row of positive branded postpaid net customer additions, and was also the best result for any quarter this year. For the full year 2013, the Company reported branded postpaid net customer additions of 2.0 million, on a pro forma combined basis, above its guidance for branded postpaid net additions of between 1.6 and 1.8 million. Branded postpaid phone net additions were 800,000, compared to 643,000 in the third quarter of 2013 and a loss of 511,000 for the fourth quarter of 2012. Mobile broadband postpaid net additions, primarily consisting of tablets, were 69,000 in the fourth quarter of 2013, compared to 5,000 mobile broadband postpaid net additions in the third quarter of 2013, demonstrating the success of T-Mobile's Un-carrier 3.0, part II initiative of "Tablets unleashed".

Branded prepaid net customer additions in the fourth quarter of 2013 showed both sequential and year-over-year improvement. T-Mobile had 112,000 branded prepaid additions, which represents an improvement of 88,000 compared to the third quarter of 2013. The improved performance was due to a combination of compelling product offers, expanded MetroPCS coverage, and seasonal strength. Branded prepaid net customer additions in the fourth quarter of 2013 were impacted by continued migrations of approximately 120,000 from branded prepaid to branded postpaid.

Wholesale net customer additions in the fourth quarter of 2013 were 664,000, compared to 351,000 in the third quarter of 2013 and 410,000 in the fourth quarter of 2012. Machine to Machine (M2M) net customer additions were 172,000 and Mobile Virtual Network Operator (MVNO) net customer additions were 492,000.

Branded postpaid churn of 1.7% in the fourth quarter of 2013 was consistent sequentially but declined 80 basis points year-over-year. The 80 basis point decline in churn represents the best quarterly year-over-year churn improvement in 2013.

Branded prepaid churn of 5.1% in the fourth quarter of 2013 was up 10 basis points sequentially and up 20 basis points year-over-year.


T-Mobile's 'Uncarrier' strategy includes Paying ETF's, The Jump! Program, Free 200MB Data with Tablets and an aggressive push towards expanding coverage and LTE.

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