T-Mobile (NYSE:TMUS) Declares August its best month yet in terms of postpaid subscribers

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By Thomas Copeland on September 11, 2014 Consumer Staples

According to John Legere, CEO T-Mobile US (NYSE:TMUS) the month of August was the best for company in terms of new postpaid customers and stronger wireless competition.

Legere says that August saw the most number of new postpaid subscribers, making this month the company’s best ever. He shared the news on Wednesday when he announced launch of new services and products that will allow users to use Wi-Fi to make calls. He further said that when it came to customers that are billed monthly, T-Mobile (NYSE:TMUS) added 1 million subscribers for postpaid services and 2.75M gross subscribers. In 2013’s third quarter the company had an addition of 1.05M net subscribers along with 689,000 net customers for postpaid services.

According to Mike McCormack, a Jefferies analyst, T-Mobile (NYSE:TMUS) had an induction of about 1.4 million subscribers for postpaid in its third quarter, which beats EBITDA estimate by $1.80 million.

It is interesting to note that T-Mobile (NYSE:TMUS) Wi-Fi marketing and Apple Inc. (NASDAQ:AAPL) iPhone 6 launch happened side by side. On its Tuesday’s event Apple revealed that users can exchange calls from iPhone 6 from networks of 4G wireless to networks that are on Wi-Fir, without having to drop the call first. Interestingly in the United States T-Mobile company is the first to offer this feature.

T-Mobile (NYSE:TMUS) plan to increase sales for the smartphones that allows users to text and call using Wi-Fi networks; especially in areas that do not have strong cellular signals. It also plans to offer 4G from Wi-Fi handoff facility though smartphones.

It seems that T-Mobile is bent on winning over more and more customers as it announced a new Wi-Fi Home Router that will allow users to set up a Personal Cell Spot, which will be connected to any broadband modem and support calls within cellular connection range. The sale price of the device will be $99 and it will also be available for renting at $25.

Gogo (NASDAQ:GOGO) that provides Wi-Fi in flights will join hands with T-Mobile to provide its subscribers free of charge in-flight services of voicemail and texts.

Guidance for postpaid subscribers addition in 2014 was raised by T-Mobile back in July from 2.8 – 3.3 million to 3 – 3.5 million. In 2014’s first half alone the company has an addition of 2.2 million subscribers for postpaid.

In the start of 2014 and in 2013 T-Mobile saw a surge in its subscribers mainly due to its Uncarrier promotion that had an aggressive approach. Growth of T-Mobile mostly hurt Sprint (NYSE:S); however Uncarrier also has put pressure on Verizon Communications (NYSE:VZ) and AT&T (NYSE:T) are also feeling some pressure from Uncarrier.

Both Sprint and Verizon cashed on iPhone’s unveiling to attract more customers; Sprint offered the users a trade-n offer for iPhone whereas Verizon has come up with its own gift cards in exchange for old iPhones.

T-Mobile US (NYSE:TMUS) stock started the morning’s session at a value of $30.68 and after two hours into the session kicked up by 0.92% ($30.82). The stock closed at a value of $30.52 on Wednesday.