T-Mobile USA - the fourth-largest telecom carrier in the U.S.
and also a business arm of Germany's Deutsche Telekom AG -
reported an improvement in subscriber growth in the ongoing
T-Mobile USA gained 3,000 subscribers in the first quarter of
2013 as compared with a loss of 261,000 subscribers in the
) iPhones in its smartphone portfolio coupled with the lack of
4GLTE spectrum has led to a continuous loss of subscribers for
T-Mobile USA in the last four years. Moreover, the U.S. telecom
market is hugely dominated by top two carriers -
Verizon Communication Inc.
), which has resulted in a heavy decline of customers for the
In order to improve its present scenario, T-Mobile USA has
taken some major steps. Firstly, the company will launch
contract-less iPhone 5, iPhone 4S and iPhone 4 for $580, $550 and
$375, respectively with a two-year installment option.
Secondly, T-Mobile USA plans to merge with the fifth-largest
MetroPCS Communications, Inc.
). The company has already cleared all the regulatory hurdles
except shareholders' approval, which will be held on Apr 12. So,
completion of the merger will benefit T-Mobile to gain more
spectrums and will enable deployment of 4GLTE technology across
its footprints, thereby narrowing the gap between T-Mobile and
the other telecom players in the U.S. market in terms of 4GLTE
Finally, T-Mobile also launched the UnCarrier plan starting at
$50 per month with unlimited calls and 500MB free data, which is
optional for the smartphone buyers, hence offering more
flexibility to smartphone users. Moreover, it will also help the
company to target the low-end market with such attractive
Hence, we believe that implementation of these strategies at
initial levels has resulted in such a massive improvement in
subscriber growth. Going forward, we expect T-Mobile USA to
maintain this growth momentum as the company prepares to launch
its much-awaited iPhones.
Currently, Verizon Communication, AT&T and MetroPCS
carries a Zacks Rank #3 (Hold) while Apple carries a Zacks Rank
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