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T-Mobile US, Inc. (NYSE:TMUS) today reported second quarter 2013 results demonstrating significant growth in its total and branded customer base due to the successful execution of its Un-carrier strategy.
T-Mobile reported 678,000 total branded net customer additions for the quarter, including branded postpaid net additions of 688,000 and branded prepaid net losses of 10,000. Reported results include two months, May and June, of MetroPCS results. The branded postpaid net additions represent an improvement of more than 1.2 million branded postpaid net additions year-over-year, driven by a record low branded postpaid churn of 1.58% and a 77% year-over-year increase in branded postpaid gross additions.
“T-Mobile’s Un-carrier approach has clearly resonated with consumers. By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers,” said John Legere, President & CEO of T-Mobile. “We are just beginning and we will continue to apply this innovative thinking to the Un-carrier offers we create and to the internal operations of our company, which taken together are driving significant shareholder value creation.”
On March 26, 2013, the Company launched its radically simplified unlimited “Simple Choice” rate plan. Device financing with the Equipment Installment Plan (EIP) provides customers with low out-of-pocket costs on some of the most popular devices available in the US wireless industry. On April 12, 2013, T-Mobile began selling the iPhone at all company-owned stores in combination with the new Simple Choice service plan. Since the April 12th launch, iPhone sales have accounted for approximately 29% of T-Mobile’s branded gross customer additions and upgrade smartphone sales, excluding MetroPCS. Additionally, T-Mobile also benefitted from strong sales of other smartphones, in particular the Samsung Galaxy S4. Total smartphone sales, including sales to branded prepaid customers, were 4.3 million units in the second quarter of 2013, equivalent to 86% of total units sold, up from 71% in the second quarter of 2012.