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Could Other Carriers Overtake T-Mobile In Spite of Recent Network Improvement?

October 28, 2014 - Written By Melissa Bailey

Despite a widened loss of T-Mobile shares, the carrier has recently managed to attract even more customers than expected.  While T-Mobile shares were down 13 cents, closing at $27.99 on Monday, the company has, through network improvements, promotions, marketing and some social media tactics by CEO John Legere improved its reputation.

An example of network improvements was released today in the United States (US) 250 million Americans can experience the US’ fastest nationwide 4G LTE network by T-Mobile.  Months ahead of schedule, T-Mobile provided the roll out of the LTE network with a nationwide availability of Voice of LTE (VoLTE).  The company expects to provide the service to 300 million US citizens by the end of 2015.  With over 40 markets throughout the US, including Atlanta, Chicago, Dallas, Philadelphia, San Francisco and Washington D.C., T-Mobile is providing 700 MHz and 1900 MHz PCS spectrum with LTE by continuing to push LTE on their AWS spectrum.  The company has recently acquired low-band 700 MHz A-Block spectrum and their first site is already up and running.  The low-band spectrum is an ambitious network plan but substantially improves 4G LTE coverage and expands coverage into regional areas of the country.

T-Mobile is also in the process of rolling out the T-Mobile Wideband LTE into areas from coast to coast.  The company will be delivering lightning fast experience to customers by advancing and expanding their already fastest nationwide 4G LTE US network.  The team are committed to advancing their Data Strongâ„¢ network, which is enhanced by the rolling out of the nationwide VoLTE covering and next-gen Wi-Fi Calling as well as T-Mobile’s Wideband LTE.  However, T-Mobile is no longer the sole carrier in the field, with Sprint rolling out a number of promotions designed to attract the consumer.  AT&T and Verizon have also started promotions, offering more data in family plans.  Despite Legere admitting that if companies such as Sprint were growing, they would be taking away the market share from rivals such as T-Mobile, he was still optimistic at Recode’s Code/Mobile conference on Monday, stating: “Don’t hold your hopes out for any customer adds there.”

T-Mobile has been able to secure a growing customer base of the last year, but has struggled with consistent profits and investors worry that the company’s promotion style reduces profitability.  Despite this, T-Mobile expects its full-year adjusted earnings before interest, taxes, depreciation and amoritzation to be closer to $5.6 billion in its $5.6 b to $5.8 billion range, which is the result of higher customer growth. The CEO of T-Mobile expects sustainable growth, let’s keep an eye on the growing company in the coming months!