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T-Mobile: Q4 strong, but can Un-carrier mojo last forever?


T-Mobile delivered another strong quarter as it continued to gobble up customers, but the outlook may indicate that its Un-carrier momentum can’t last forever.

For 2018, T-Mobile projected postpaid net customer additions of 2 million to 3 million. That tally is lower than the 3.6 million net postpaid additions in 2017.

T-Mobile, which had previously indicated its results would be better-than-expected, reported net income of $2.7 billion, or $3.11 a share, on revenue of $10.8 billion, up 5.1 percent from a year ago. The earnings results got a $2.2 billion boost from the Tax Cuts and Jobs Act.

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For 2017, T-Mobile reported net income of $4.5 billion on revenue of $40.6 billion.

On the subscriber front, T-Mobile added 1.9 million net customer additions in the fourth quarter and 5.7 million for the year. Churn for postpaid phones came in at 1.18 percent in the fourth quarter.

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T-Mobile touted its Un-carrier approach and its impact on the industry over the last five years. Indeed, T-Mobile has added more than 39 million customers over the last five years and changed the economics for rivals Verizon and AT&T.

What’s unclear is whether T-Mobile can keep that momentum going as AT&T and Verizon have their own unlimited plans. T-Mobile’s move to add Netflix subscriptions to its plans may be an indicator that it’s running low on ideas. T-Mobile could continue to turn its Un-carrier approach into more of an Amazon Prime-ish buffet of benefits, but that’ll get expensive over time.



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I'm a 50 year old PLC programmer from Burnley, UK. I severed my time as an electrician in the baking industry and soon got involved with the up and coming technology of PLC's. Initially this was all based in the Uk but as the years went by I have gradually worked my way around the globe. At first it was mainly Mitsubishi with a bit of Modicon thrown in but these days the industry leaders seem to be the Allen Bradley range of PLC and HMI’s.

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