iPhone Sucks Subscribers Away From T-Mobile USA

iPhone Sucks Subscribers Away From T-Mobile USA
Market News
Like Us On Facebook
Like Us On Facebook

Customers have been leaving T-Mobile USA, the country’s No. 4 cellphone company, for the last two years. Now that all three of the bigger carriers have the iPhone, that stream has turned into a flood. The company on Thursday said it lost a net 526,000 subscribers in the fourth quarter. Worse, it lost a net 802,000 subscribers on contract-based plans, which are the most lucrative. That’s an unheard-of figure for an industry that was characterized by rapid growth for more than a decade.

T-Mobile, a Bellevue, Wash.-based subsidiary of Germany’s Deutsche Telekom AG, is now losing subscribers from contract-based plans faster than regular phone companies are losing landline customers.

Sprint Nextel Corp., the No. 3 carrier, started selling the iPhone in October, joining Verizon Wireless and AT&T Inc. in the “iPhone Club.” That coincided with the launch of the iPhone 4S, which propelled U.S. iPhone activations to a record 13.7 million over three months.

The iPhone helped Sprint post a rare increase in contract-based subscribers. Verizon and AT&T, the top two carriers, posted healthy increases as well.

It’s now clear that many of those new subscribers were coming from T-Mobile USA.

As the smallest of the four national carriers, T-Mobile was struggling even before all of its competitors had the iPhone. Its parent company has said it’s not interested in investing in it. Last year, Deutsche Telekom appeared to have found an exit strategy, in the shape of a sale to AT&T for $39 billion. But that deal was blocked by U.S. regulators, who said it would reduce competition.

T-Mobile’s CEO, Philipp Humm, on Thursday promised that the company will get back into the game through network upgrades. With the collapse of the deal, AT&T was forced to pay a break-up fee of $3 billion in cash and some spectrum licenses, so T-Mobile now has some room to maneuver.

Neville Ray, the company’s chief technology officer, said T-Mobile will start building a network using the new “LTE” wireless standard, which gives higher data speeds, and will have it operational next year. This upgrade is possible because of the spectrum from AT&T.

AT&T and Verizon Wireless already have LTE networks running, and Sprint has said it plans to go through with the upgrade as well.

T-Mobile is investing $4 billion in the network upgrade, $1.4 billion more than it had planned earlier.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Preston Waters

Preston Waters is a thinker. He's not your traditional philosophical persona, however, as he leaves no topic untouched. Covering all the bases, from business to women, Preston Waters is the ultimate man's man for Gen-Y.

More In Market News

News Preston Waters

Stocks Off to Stellar Start in May

Stocks were kicking off May in high style Tuesday, posting sharp gains after a much better-than-expected report on U.S. manufacturing activity. The Dow Jones Industrial Average was rising 103 points, or 0.8%, at 13,317, after hitting a four-year high at 13,338. The S&P 500 was up 14 points, or 1%, at 1413, and the Nasdaq was adding 23 points, or 0.7%, at […]

News Preston Waters

Bank Of America, JPMorgan: Dow Midday Movers

U.S. stocks were rising in midday action Tuesday following a better-than-expected read on U.S. manufacturing activity.The Dow Jones Industrial Average was up more than 116 points, or 0.9%, at 13,330. The biggest percentage gainers within the Dow were Bank of America (BAC), JPMorgan Chase (JPM) and Intel (INTC). Shares of Bank of America rose 2.59% to $8.32. The bank said Tuesday it plans to lay […]

News Preston Waters

Monster Stocks Soar Amid Rumors Coca-Cola Is Set To Buy Energy Drink

Monster Beverage Corp’s shares soared on Monday following a report that Coca-Cola Co. was considering buying the energy drink maker. The Wall Street Journal cited unnamed people in reporting that the world’s biggest soft drink maker was in talks to buy Monster. If a deal transpired, Monster would be Coca-Cola’s largest brand acquisition ever. Monster declined […]

News Preston Waters

Stocks Surge After Strong Manufacturing Report

Stocks were surging in morning action Tuesday after a much better-than-expected report on the pace of national manufacturing activity in April.The Dow Jones Industrial Average was rising 80 points, or 0.6%, at 13,294. The S&P 500 was up 12 points, or 0.8%, at 1410, and the Nasdaq was adding 29 points, or 1%, at 3075. Stocks finished modestly lower Monday, marking […]

News Preston Waters

Bank Of America Keeps Shrinking

Bank of America (BAC)’s plan to lay off some of its highest-paid executives looks like the right response to the current banking environment. The Wall Street Journal reported Tuesday the bank will cut 2,000 positions in its investment banking, commercial banking and non-U.S. wealth-management units targeting “the high-earning employees whose efforts helped Merrill Lynch account for the bulk of […]

News Preston Waters

Stock Market Story: May 1

The first trading day of May got off to a mixed start early Tuesday with all three major U.S. equity indices honing to close to the flat line ahead of a key report on the pace of U.S. manufacturing activity in April. The Dow Jones Industrial Average was down 9.5 points, or 0.07%, at 13,204.The S&P 500 was up less than a […]

Also On Elite

Sports

Tiger Woods Perfectly Explains Why Our Generation Hates Golf, The Numbers Prove It

Despite the injuries and a six-year major championships drought, Tiger Woods is still golf’s undisputed number one figure and brand. So if there’s any person who is well-placed to discuss the all-around decline golf has suffered in recent years, it’s the man who conquered the sport himself. As is the case with many industries, golf’s […]

Life

13 Ways Post-Grad Life In NYC Is Exactly Like Studying Abroad

You may have thought you would never experience the lifestyle you had when you studied abroad during your junior year. But if you’re headed to the Big Apple after college, you can experience that lifestyle all over again: the good, the bad and the completely broke. 1. You have never had so much free time. […]

World

Woman Is Dumbfounded That Her Granddaughter Is In Dating Another Woman (Video)

Often times, there’s a common disconnect between the values of our generation and the generation of our grandparents. One woman proves just how foreign the idea of her being a lesbian is to her grandmother. The woman’s grandmother goes on a vulgar and strangely sexual tirade, trying to wrap her mind around what he granddaughter does […]

Success

Science Behind The Salt: The Unexpected Connection Between Success And Superstitions

There’s a difference between your average “knock-on-wood” guy and your superstitious guy. To superstitious people, the “knock-on-wood” guy is a joke, a poser, a band-wagoner. The “knock-on-wood” guy doesn’t know what it means to follow a set of ridiculous rules laid out without proof or existence. He doesn’t know what it means to believe in […]

Entertainment

The World Lost Another Film Legend In Lauren Bacall At Age 89

Amid the sadness of Robin Williams’ death, another legendary figure in the world of film has passed away. Lauren Bacall died yesterday morning in New York City at the age of 89. Bacall was a phenomenal actress who began her career when she was only 19 years old. She worked up until the time of […]

World

Watch Newly Released Footage Of Michael Brown Allegedly Robbing The Convenience Store

The Ferguson Police Department has released surveillance footage that appears to show 18-year-old Michael Brown robbing a convenience store just minutes before he was shot dead. At a press conference earlier today, the department gave reporters an information packet that contained images from the video and revealed that six-year veteran Darren Wilson was the officer […]