Displaying items by tag: TMobile US
T-Mobile US CEO has confirmed the worst fears of Chinese telecommunication behemoths Huawei and ZTE by officially announcing that it will not use any equipment supplied by either vendor.
A leading US consumer watchdog has voiced their concerns regarding the details of the proposed merger agreement between mobile operators T-Mobile US and Sprint.
The US government has confirmed that the proposed merger deal between telecommunication operators T-Mobile US and Sprint will undergo a forensic examination in an effort to determine whether or not the deal represents the best interests of consumers.
T-Mobile US posted strong results this quarter despite the fact that its competition went big on unlimited offers. The operator reported record low customer attrition and said it was considering a quarterly dividend.
Chief Financial Officer Braxton Carter said, "We're actually starting to have conversations about instituting a small quarterly dividend that we can grow in the future.”
Q2 2017 was a record-breaking quarter in a number of areas for T-Mobile, the company states. The operator delivered record service revenue, strong net income, record Adjusted EBITDA and record-low postpaid phone churn. T-Mobile added 1.3 million total customers, marking 17 straight quarters of adding more than 1 million every quarter.
The company expects to capture all of the industry's postpaid phone growth with 786,000 branded postpaid phone customers in the quarter. Customers are also staying longer, T-Mobile claims, reflected in its record-low branded postpaid phone churn of 1.10% in Q2 2017.
As a result of these strong customer metrics, T-Mobile grew service revenues to record levels, up 8% year-over-year in Q2 2017, it claims. The operator’s consistent level of outperformance has seen it gaining share from larger competitors AT&T and Verizon in a saturated US market through its network improvements and lower prices.
The company had said it was open to various strategic options and has acknowledged it would consider talks with rival Sprint about a potential merger, Reuters reported. However, discussions appear to be on hold, as Sprint, owned by Japan’s SoftBank, is also in negotiations with cable companies Charter Communications and Comcast.
T-Mobile’s net income rose to $581 million, or 67 cents per share, from $225 million, or 25 cents per share, a year earlier. Total revenue grew to $10.21 billion from $9.29 billion. The operator toppled analyst predictions of 38 cents per share on revenue of $9.81 billion, according to Thomson Reuters I/B/E/S.
"We just delivered a quarter with record service revenue, record-low churn, strong net income and record Adjusted EBITDA - all while leading the industry in postpaid phone growth," said John Legere, President and CEO of T-Mobile.
"On top of that, our network just keeps getting better and faster while the Duopoly's networks seem to be choking after we forced them to go unlimited. Make no mistake about it, the Un-carrier will not stop forcing change in this industry and our Q2 results are more proof that consumers are responding!"
What is a Un-carrier? T-Mobile defines the model as “listening to customers, solving their pain points and giving them unmatched value.” Focusing on these simple priorities has “completely disrupted the wireless industry” T-Mobile claims, “and forced the competition to respond to our moves.”
US regulator, the Federal Communications Commission (FCC) have pledged that they will not ‘deny Americans free data’ following the conclusion of an investigation into zero-rated data programs which have been offered by the country’s leading operators.
The commission concluded their investigation into the data programs and decided not to take any action – citing that the ‘free-data’ plans offered by telecom operators such as AT&T, Verizon and T-Mobile US have enhanced competition in the country’s mobile market and have proved extremely popular amongst consumers.
In a statement issued by the new chairman of the FCC, Ajit Pai, he said: “Going forward, the Federal Communications Commission will not focus on denying Americans free data.”
That stance is the latest indicator that the new FCC chairman is set to remove the country’s net neutrality rules which were imposed by the previous administration. In the aftermath of President Trump’s election in November, he declared that the regulation’s days were numbered.
Last year, the FCC commissioner Tom Wheeler launched an investigation into zero-rated services which enabled US consumers to stream video content from applications without it counting against data caps. Net neutrality laws prohibit providers from offering a better quality of service to certain online content at the expense of other services, and due to this the FCC decided to embark upon an investigation in which looked at zero-rated offerings on a case-by-case basis.
One of Wheeler’s final acts as commissioner of the FCC was to issue letters to AT&T and Verizon in which he warned operators that their zero-rated offers violated net neutrality rules and harmed competition.
It was disclosed further what the contents of the letter contained – it said that AT&T, through its ‘Sponsored Data’ program had offered third party providers less favorable terms and conditions than those it offers its affiliate DirecTV.
It echoed similar concerns of Verizon’s FreeBee Data 360, which offers mobile video through its Go90 video platform. However, with Pai’s latest move both companies are free to continue offering their respective services.
AT&T issued a statement following the close of the investigation by the FCC and declared the decision a ‘win for millions of customers’.