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T-Mobile offers up to $650 in credit to switching users, provides Q4 numbers

  • As expected, T-Mobile USA (TMUS +0.1%) has announced at its Un-Carrier 4.0 event it will offer large amounts of credit to convince users to abandon rival carriers. (PR)
  • The #4 U.S. carrier will offer up to $300 in credit to consumers for handing in an existing device, buying an eligible T-Mobile phone, and signing up for a T-Mobile postpaid plan. It'll also offer up to $350 to pay off early termination fees.
  • T-Mobile's offer is more aggressive than AT&T's. Ma Bell announced last week it would provide (for the time being) up to $450 in credit to get T-Mobile users to switch.
  • Many investors/analysts are nervous T-Mobile's efforts, together with reciprocal moves from rivals, could increase industry churn and pressure margins.
  • Separately, T-Mobile has announced it added 1.645M total subs and 869K branded postpaid subs in seasonally strong Q4. BTIG's Walter Piecyk states the figures are above consensus estimates of 1.2M and 653K.
  • With MetroPCS' help, 112K branded prepaid subs were added, up from 24K in Q3 and 73K a year ago. Branded postpaid churn was 1.7%, flat Q/Q and down from 2.5% a year ago.
  • The Q4 numbers put an exclamation mark on T-Mobile's 2013 turnaround. After bleeding share for years to AT&T and Verizon (515K branded postpaid subs were lost in Q4 2012), the carrier engineered a turnaround with the help of iPhone sales, no-contract/subsidy-free postpaid plans, and its Jump smartphone upgrade plan.
Comments (6)
  • Smot
    , contributor
    Comments (8) | Send Message
    This is good for Customers. Go T- Mobile.
    Competition is good but at the same time, we should keep the quality and trust .
    8 Jan, 04:26 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4043) | Send Message
    I am a fan of both TMo (TMUS) and their strategy (; however, there is no excuse for a grown man to wear a pink t-shirt under a sports jacket. It is just wrong. He can help make me millions of dollars and I will appreciate that effort, but it is still wrong. Someone must say something.
    8 Jan, 04:56 PM Reply Like
  • mkemac
    , contributor
    Comments (345) | Send Message
    It is a marketing gimmick-cheap pink T-shirt. Low cost and effective. TMUS looking more like a $40-45 stock. Sprint/Dish better hurry up a make an offer before TMUS goes over $50 sooner than later.
    8 Jan, 05:12 PM Reply Like
  • Yokyok
    , contributor
    Comments (325) | Send Message
    Wrong to wear a pink t-shirt? I'll say something. Pffffft. Get over it.
    It's the company's colors.
    And the strategy is brilliant and it's working.
    8 Jan, 07:02 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4043) | Send Message
    Um, I was joking.
    8 Jan, 07:10 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (694) | Send Message
    Haha I thought that was pretty obvious...
    8 Jan, 07:53 PM Reply Like
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