T-Mobile US Inc (NASDAQ:TMUS) is aggressively eating into Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) customer base having confirmed it added 8.2 million total net customers last year. Most of the additions were made in the last quarter all but showing that the carrier’s disruptive and competitive customer offerings are finally paying off.
T-Mobile Growing Customer Base
In the fourth quarter, the third largest carrier added 2.1 million net customers pushing its customer base to highs of 71.5 million. The increase marked the 15th consecutive quarter of customer additions all but affirming the ripple effect the company is having in the space. T-Mobile says 2016 also marked the third consecutive year during which it managed to generate over 8 million net customer additions.
T-Mobile says 2.5 million branded prepaid customers joined the network last year with 541,000 of the additions coming in the fourth quarter. With the addition, 210,000 branded prepaid customers upgraded to the company‘s postpaid plans. T-Mobile’s churn rate stood at 1.28% last year an indication that customers are slowly becoming loyal even as competition among carriers intensifies.
“[..] In 2016, for the third year in a row – we added more than 8 million total customers with more than 2 million customers in Q4. Combine that with the best ever fourth quarter branded postpaid phone and branded prepaid churn and it’s clear that this revolution is in full swing,” said Chief Executive Officer, John Legere.
T-Mobile Aggressive Marketing Tactics
T-Mobile success in taking Verizon and AT&T head on and successfully stealing customers does not come as a surprise. The company has in the recent past embarked on aggressive promotion tactics as it looks to shrug off competition from its peers offering similar offerings. Its success should be a warning sign to the big players that smaller companies can fly under the radar and cause as much disruption as possible.
T-Mobile rising popularity is also down to its Un-Carrier promotion that has already led to the demise of the two-year phone contract. Zero rating offers such as Binge-On offering also continues to send shockwaves as consumers look for affordable ways to stream content.
