T-Mobile gains 1.6 million customers with expanding 5G network.

T-Mobile gains 1.6 million customers with expanding 5G network.

T-Mobile Continues to Grow its Customer Base in Q2 2023

T-Mobile, a leading telecommunications company, has reported significant growth in its customer base during the second quarter of 2023. With a total of 1.6 million net added customers across its phone and home 5G internet services, T-Mobile is on a positive trajectory while its competitors, AT&T and Verizon, experienced more modest growth.

One of the key metrics used to measure success in the industry is postpaid net phone additions, and T-Mobile reported 760,000 such additions during this quarter. This indicates a strong and dependable source of revenue for the company. T-Mobile’s 5G network continues to expand, currently reaching 98% of Americans and covering 285 million people with its higher-speed Ultra Capacity 5G network. The company aims to reach 300 million people by the end of the year.

It’s worth noting that most of T-Mobile’s Ultra Capacity 5G network operates on midband spectrum, including the 2.5GHz spectrum acquired in the merger with Sprint. The carrier’s deployment of the highest-speed millimeter wave 5G spectrum is limited, but T-Mobile’s President of Technology, Ulf Ewaldsson, mentioned the potential for using it to enhance capacities for the carrier’s 5G fixed wireless service, called T-Mobile High-Speed Internet. While there are no immediate plans for a big expansion of millimeter wave 5G, T-Mobile is exploring possibilities with its vendor and manufacturer partners.

Looking towards the future, T-Mobile plans to continue expanding its midband 5G network. This expansion will involve converting spectrum from LTE to 5G, utilizing the C-band spectrum of 5G, and incorporating spectrum won in auctions covering the 2.5GHz and 3.45GHz ranges. With numerous opportunities on the horizon, Ewaldsson expressed excitement about T-Mobile’s expanding lead in terms of network coverage.

In April, T-Mobile introduced two new 5G plans: Go5G and Go5G Plus. These plans, though slightly pricier than the existing Magenta and Magenta Max plans, offer additional benefits such as more high-speed data for use in Mexico and Canada, as well as 10GB of extra hotspot data. Jon Freier, T-Mobile Consumer Group President, revealed that over 60% of new accounts are subscribing to the Go5G Plus plan, making it the most popular plan offered by the carrier.

T-Mobile’s success is not limited to its phone services. The company added 509,000 High-Speed Internet customers for its 5G fixed wireless service during the quarter. This figure surpasses the combined number of new customers added by Comcast and Charter, T-Mobile’s competitors in this space. The company now boasts a total of 3.7 million high-speed internet customers and is firmly on track to reach its goal of 7 million to 8 million subscribers for its fixed wireless service. T-Mobile’s CEO, Mike Sievert, emphasized the company’s commitment to accelerating growth in this area, stating, “We’re speeding up, not slowing down, on this network.”

It’s important to note that T-Mobile’s High-Speed Internet does have a population limit due to its current configuration, which utilizes “excess capacity” of 5G service from its network. Although Sievert did not provide specific details on expanding the fixed wireless part of the network beyond its base of 2.5GHz spectrum, he did mention that T-Mobile is always exploring new avenues to add capacity to its network. While T-Mobile does have trials underway for fiber wired internet, no expansion plans have been announced thus far.

Despite the challenges faced by the industry, T-Mobile reported a revenue of $15.7 billion, representing a year-over-year growth of 3% for the same period. The company exceeded analysts’ expectations with a diluted earnings per share of $1.86, surpassing the predicted $1.69 earnings per share.

In response to the news, T-Mobile’s stock experienced a slight decline of 1.99% in after-hours trading. However, the overall growth of the company’s customer base and financial performance speaks to its position as a strong player in the telecommunications market.

With its consistent customer growth, expanding 5G network, and commitment to providing innovative plans and high-speed internet services, T-Mobile continues to solidify its position as a leading telecommunications provider in the United States.