T-Mobile warns of rocky 4th quarter

As the only major carrier without an iPhone offering and one that is exceedingly muddled due to the AT&T buyout uncertainty, T-Mobile has a rough road ahead.

Such was the sentiment of T-Mobile CEO Philipp Humm following the company’s quarterly earnings report.

In the third quarter, the carrier managed to hold its own. It added a net of 126,000 customers, although that was thanks to a surge in prepaid phone sales.

When it comes to contracts, T-Mobile actually lost 186,000 customers. So essentially the company is losing high-value customers but gaining a lot more low-value customers.

As a result, T-Mobile is holding steady for now. It showed a profit of $332 million, believe it or not an increase of 4% over last year. But, Humm warns, the negative factors playing against the company will only grow in the future.

For most of the third quarter, only AT&T and Verizon offered the iPhone, but now Sprint is on board and the fourth quarter will no doubt have a huge amount of iPhone 4S sales – a fact that everyone will get to take advantage of except for T-Mobile.

So T-Mobile is shifting its focus to being a carrier that appeals to budget-conscious consumers. The company has been advertising its “best plan ever,” a cheap, ‘unlimited’ plan that makes it a better deal for non-data-intensive users than what the other carriers offer.

T-Mobile continues to be in limbo while the AT&T deal faces enhanced scrutiny. Both companies hope to have the entire issue settled by the middle of next year.

Recent Posts

Do NOT follow this link or you will be banned from the site!