Thursday, August 6, 2020

T-Mobile now has 98.3 million customers, topping AT&T

The new T-Mobile US added 1,245,000 net lines in Q2, giving it a total of 98.3 million total customers, 2nd most in the United States, behind Verizon, and ahead of AT&T. The merger with Sprint was completed on April 1, 2020. T-Mobile said it has continued to gain momentum despite the pandemic and social and economic climate.

“Surpassing AT&T to become #2 was a huge milestone to kick off Q2, but that was only the beginning! In our first quarter as a combined company, T-Mobile led the industry in total branded customer adds – even in a challenging environment – and there is no doubt that we are THE leading growth company in wireless,” said Mike Sievert, T-Mobile CEO. “Now we’re setting our sights on #1 – in customer choice and customers’ hearts – and we’ll get there by doing ONLY what the Un-carrier can do: offering customers the most advanced 5G network AND the best value while continuing to make big moves that fix customer pain points and disrupt this industry."

Some Q2 highlights:

  • Total revenues increased year-over-year to $17.7 billion in Q2 2020, driven by the Sprint merger and continued customer growth at T-Mobile. Total revenues exclude approximately $1.3 billion of Boost revenues that are reflected in discontinued operations.
  • Net income decreased year-over-year to $110 million and EPS decreased year-over-year to $0.09 in Q2 2020, primarily due to the Sprint merger and merger-related costs, impacts of COVID-19, and non-cash impairments.
  • Net customer additions were 1,245,000 in Q2 2020, the 22nd consecutive quarter of industry-leading performance in this category. The total customer count increased to 98.3 million(2), overtaking AT&T in total branded customers across both postpaid and prepaid.
  • Postpaid net customer additions were 1,112,000 in Q2 2020, the 10th consecutive quarter of industry-leading performance in this category.
  • Postpaid phone net customer additions were 253,000 in Q2 2020, the 26th consecutive quarter of leading the national carriers, and postpaid phone churn was 0.80%. The total postpaid phone customer count increased to 65.1 million(3), overtaking AT&T in total postpaid phone customers.
  • Postpaid other net customer additions were 859,000 in Q2 2020, leading the industry as new opportunities in T-Mobile for Business developed primarily due to COVID-19.
  • Prepaid net customer additions were 133,000 in Q2 2020 and prepaid churn was 2.81%.

Network highlights

  • T-Mobile already has mid-band 5G service using 2.5 GHz spectrum live in eight major markets including Atlanta, Chicago, Dallas, Houston, Los Angeles, New York City, Philadelphia and Washington D.C. The performance of mid-band 5G is incredible, delivering average download speeds in the 300 Mbps range and peak speeds hitting one Gbps for customers with compatible 5G devices.
  • T-Mobile recently became the first operator in the world to launch a commercial nationwide standalone 5G network, allowing the Un-carrier to massively expand its 5G footprint, bring next-gen connectivity to more places and pave the way for future groundbreaking applications.
  • T-Mobile controls an average of 319 MHz of combined low and mid-band spectrum on average nationwide. This spectrum position is nearly double that of AT&T and nearly three times that of Verizon. In addition, T-Mobile controls 1,160 MHz of mmWave spectrum nationwide, more than AT&T.
  • More than 10 percent of Sprint postpaid customer traffic has already been moved over to the T-Mobile network and site decommissioning has begun
  • Approximately 75 percent of Sprint postpaid customers are enabled on VoLTE and enjoying a better voice experience, including simultaneous voice and data services