Perhaps looking to gain back some marketing headlines, T-Mobile US announced it has doubled the “brand presence” of MetroPCS across the country and added the service to 15 new markets, which is double the number of markets the brand was available in when T-Mobile US purchased MetroPCS earlier this year.
The new MetroPCS markets include:
–Baltimore
–Birmingham, Ala.
–Cleveland, Toledo, Sandusky and Akron, Ohio
–Corpus Christi, Houston, San Antonio, Austin and Rio Grande Valley, Texas
–Fresno and San Diego, Calif.
–Memphis, Tenn.
–New Orleans
–Seattle and Tacoma, Wash.
–Tallahassee, Fla.
–Washington, D.C.
T-Mobile US noted that customers in these markets, as well as MetroPCS’ legacy markets, would have access to devices compatible with T-Mobile US’ HSPA-based 3G and LTE networks as well as nationwide roaming across T-Mobile US’ network. MetroPCS’ legacy operations relied on its CDMA-based 2G service and LTE network.
New devices being offered to MetroPCS customers include the Nokia Lumia 521 and LG Optimus F3. Both of those devices do not include support for MetroPCS’ CDMA service, which T-Mobile US is looking to shutter in order to re-farm the 1.9 GHz spectrum used to support that service for its HSPA-based service.
T-Mobile US earlier this month offered up the Samsung Galaxy S4 smartphone to MetroPCS customers in markets where the carrier had integrated network operations, including Atlanta; Harford, Conn.; Philadelphia; Boston; Las Vegas; San Francisco; Dallas-Ft. Worth; and New York.
T-Mobile US announced in May that it planned to aggressively move to integrate network operations between the carriers, allowing MetroPCS customers to tap into T-Mobile US’ increased coverage and handset selection. T-Mobile US has said that it will continue supporting the MetroPCS brand, with plans to further integrate the network capabilities leading to 100 million more potential customers covered by MetroPCS services over the next six quarters. MetroPCS covered just over 100 million pops prior to its merger with T-Mobile USA. T-Mobile US said it expects all of MetroPCS customers to be transitioned to the new device portfolio by the end of 2015.
MetroPCS reported that in connection with its merger with T-Mobile USA, it planned to decommission up to 10,000 of its 11,500 cell sites.
The expansion follows on the heels of AT&T announcing plans to acquire Leap Wireless, which offers a similar unlimited, no-contract offering provided by MetroPCS. AT&T has said that it plans to continue offering the Leap branded services following the acquisition of Leap despite already having no-contract offerings through its GoPhone and more recently launched Aio Wireless brands.
Bill Ho, wireless industry analyst at 556 Ventures, noted that the MetroPCS expansion is into a number of markets currently served by Leap Wireless, including parts of Texas as well as Leap’s home market of San Diego.
T-Mobile US promotion
While MetroPCS is expanding, T-Mobile US also reported that it was cutting the down payment on mobile devices, rolling that charge into higher monthly payments. The promotion, which is set launch on July 27, eliminates the down payment on devices, with corresponding monthly payments increasing to make up the difference over a 24-month term.
On the Apple iPhone 5 the new promotion will eliminate the $146 down payment and increase the corresponding monthly payment from $21 to $27. Of course, customers that also sign up for T-Mobile US’ recently launched JUMP program will be able to trade-in their old device for a new device up to twice per year, with the first upgrade having to wait after six months of enrollment in the program and requires that customers trade in their old device in “good working condition.” That program will cost consumers an extra $10 per month, or $60 before they can take advantage of the first upgrade. Factoring in the additional $6 per month on an increased iPhone 5 monthly payment, and customers will be forking over $96 at minimum before taking advantage of JUMP with the new promotion, or roughly two-thirds of the initial down payment savings.
The promotion comes just ahead of T-Mobile US’ scheduled second quarter earnings release currently set for Aug. 8. Hinting at what should be a strong quarter, T-Mobile US previously reported that it had “nearly tripled its flow of postpaid net-new customers from AT&T” and that in May the carrier gained more net-new customers than its larger rivals in New York; Los Angeles; Houston; the San Francisco Bay Area; Miami; San Diego; and Washington, D.C.
The May timeline is somewhat significant, and perhaps misleading, in that the month was its first full month of offering Apple’s iPhone product lineup having begun offering the devices April 12. Ahead of the iPhone launch, T-Mobile US also rolled out an aggressive trade-in program for customers using iPhones from competing carriers.
Analysts have been expecting a surge in postpaid net additions for T-Mobile US during the recently completed second quarter, with many updating expectations for the carrier to post positive growth across that customer segment. T-Mobile US has seen a continuous stream of defections from its postpaid business, including the loss of 199,000 contract customers during the first quarter of this year.
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