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Sprint’s Promotions won’t Impact T-Mobile, says Analyst

February 16, 2016 - Written By Alexander Maxham

Sprint has been putting on quite a few promotions as of late. It is all a way for them to attempt at bring back customers to their network. After dropping to the fourth largest carrier in the US, Sprint is looking to gain some customers back from their competitors. Although it doesn’t seem to have worked as well as Sprint had hoped. Many thought that T-Mobile would feel the impact of Sprint’s promotions the most. But it appears that is not the case, according to analysts at Barclays and New Street Research. Both also indicated that carriers are having to choose between adding more subscribers and maximizing their revenues, however T-Mobile seems to be making progress in both areas and they believe the carrier will continue to do so for a little while longer.

Barclays also noted that with T-Mobile announcing their preliminary numbers before their quarterly earnings in recent years, it has reduced the risk of surprises during the earnings calls. Analyst, Amir Rozwadowski from Barclays also noted that he is expecting the carrier to post 1.3 million net postpaid adds, with churn of 1.46 percent as well as seeing improvements in margins year-over-year. T-Mobile’s shares are down a bit this year, due to a couple of reasons. One being Sprint and their price cuts and promotions. With the other being the incentive auction set to take place later this year. It’s believed that cable companies may come into the auction and outspend T-Mobile. Thus putting the rules that the carrier fought to get in place for this auction, against them.

T-Mobile already announced that in the fourth quarter, they added 2.1 million total net customers. Which was broken down as 1.3 million branded postpaid, 917,000 branded postpaid phones, 469,000 branded prepaid net with churn of 1.46 percent. For the full 2015 year, they added 8.3 million customers. Making it the second consecutive year that they have added over 8 million customers. A pretty decent quarter and year for T-Mobile. However we’ll learn of their financials tomorrow when T-Mobile does their earnings call. It’ll be in the morning with execs including CEO John Legere, CFO Braxton Carter, just to name a few.