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T-Mobile Is Expected To Lead Again In Second Quarter

July 20, 2014 - Written By Abhinav Singh

There have been many speculations regarding the future growth prospects of T-Mobile, especially when everyone is looking towards the decision to be taken for the merger between T-Mobile and Sprint. In Quarter-1, T-Mobile showed some really impressive stats. It managed to add 1.32 million postpaid subscribers, which was the highest figure by any other player in the industry. With such impressive figures, T-Mobile is already giving a good fight to these industry giants, i.e. Verizon and AT&T and so it gets even tougher to approve that merger. However, Sprint does not want to let this deal off the hook and so they are expected to bid for the 67% of shares owned by Germany’s Deutsche Telekom.

Speculating the growth figures in Quarter-2 John Hodulik, an analyst at UBS said, “We expect T-Mobile to emerge as the fastest-growing wireless company in the U.S., with 7% service-revenue growth as subscriber adds slow but remain solid”. One of the major reasons behind this growth in the number of subscribers (Quarter -1) was the Un-carrier branded moves by T-Mobile, which included offering early termination fee payment up to $350 per line for the subscribers who shift from other carriers, but such initiatives were missing in the second quarter and hence there will be certain downfall in T-Mobile’s subscriber gain for the second quarter. Apart from this, the marketing efforts by AT&T and Verizon may also add to this loss of momentum.

Verizon and AT&T have already revealed their subscriber addition in Quarter-2, which shows that Verizon managed to add 1.4 million subscribers (which is a great growth as compared to 539,000 subscriber in Q-1) and AT&T added 800,000 subscribers up from 625,000 subscribers in Q-1. For T-Mobile, it would be great if they could even manage to match its Quarter-on-Quarter results. Well, Softbank strongly feels that the merger of Sprint and T-Mobile is really important if long-term competitive prospects in the industry are to be kept in mind. Let us know your views about it, the Q-2 results will be available on 31st July. Do you think that the merger would really help? Or is the Sprint and T-Mobile merger just a waste of efforts?