T-Mobile Prepared For Growth Decline In The Prepaid Market

May 19, 2017 - Written By Justin Diaz

T-Mobile is prepared for growth decline in the prepaid market, as it has made conscious decisions not to engage the market competitors with their own sets of promotions designed to entice customers to switch to their prepaid services. According to T-Mobile’s CFO Braxton Carter, they’ll end up having to accept a “sequential decline” in the growth of their prepaid customer numbers but that’s something that they will be able to endure thanks to the “incredible efficiency” of their Metro PCS service, which competes against the likes of Sprint’s Boost Mobile and AT&T’s Cricket Wireless among other prepaid wireless options.

T-Mobile doesn’t have exact numbers to divulge at this time in terms of how much of a slowed growth they’ll see for prepaid services, as they expect the growth decline to be for their second quarter numbers, and the second quarter is still ongoing. That said T-Mobile also attributes some of the slowed growth to seasonality in addition to their choice not to compete with other services with prepaid promotions, as Carter refers to these promotions as irrational type deals and that T-Mobile would not be following them. Presumably T-Mobile feels that engaging with such promotions for customers would do more harm than good as they seem to weathering the changes from quarter to quarter just fine.

Though its growth is expected to slow for Q2 of this year, the first quarter saw the nation’s third-largest wireless carrier with increasing prepaid growth as they reportedly added a total of 541,000 new prepaid customers. What’s more is that the largest portion of these are said to be from MetroPCS, and its this strong growth in the first quarter that is also likely to be helping them in sitting back instead of trying to lure in customers with things like free phones, something which Sprint’s Boost Mobile service began offering to customers in the Fall of last year. The second quarter will be ending at the tail end of June, specifically June 30th, so there is still a fair amount of time for T-Mobile’s prepaid growth to either decline more or increase some, at which point the carrier will be able to see how much growth in the prepaid sector they’ve lost.