T-Mobile US reported postpaid phone additions of 760,000 in Q2, the most in a quarter over the past eight years
T-Mobile US had a knockout Q2 2023, reporting postpaid phone additions of 760,000, the most in a quarter over the past eight years and much more than AT&T’s 326,000 and Verizon’s 8,000. As a result, T-Mobile upped its full-year net additions target from between 5.3 million and 5.7 million to a range from 5.6 million to 5.9 million.
T-Mobile US is also leading the industry in service revenue, which grew 2.8% to $15.7 billion and postpaid service revenues, which grew 5% to $12.1 billion. The company additionally reported a record-low postpaid phone churn of 0.77% and a net income of $2.2 billion.
“We’ve set audacious goals and delivered a durable and differentiated plan that is working just as we said it would. And now… we are the one to watch — with no plans to slow down,” commented Mike Sievert, T-Mobile US CEO.
An influx of customers has been credited to the operator’s “Go5G Plus” plan, announced in Q2. The new plan offers an alternative to the three-year contracts provided by rival carriers. According to Jon Freier, president of T-Mobile US’ Consumer Group, more than 60% of the accounts now joining the company are opting for the Go5G Plus plan.
He explained that even he “underestimated” how big of a pain point the three-year contract cycle offered by AT&T and Verizon is for customers. “You can basically go to law school and complete law school faster than you can complete a phone contract at AT&T and Verizon,” he said. “The promise of Go5G Plus of being able to get in a new device… every two years — that’s a differentiated and unique proposition in the marketplace that’s really different and is really resonating with customers.”
T-Mobile US also added 509,000 fixed-wireless internet (FWA) customers compared with 560,000 in Q2 2022 and 523,000 net customer adds for the first quarter of 2023. While FWA growth is still slowing, T-Mobile US CFO Peter Osvaldik said at last month’s Bank of America investor event that the company is optimistic about customer interest in FWA.
“Our churn has gone down sequentially every quarter, so consumers are telling you there’s a space for this product,” he said. According to previous comments made by company executives, T-Mobile US is on track to serve 7 million to 8 million FWA customers by 2025.
