Friday, August 9, 2013

T-Mobile Finding New Growth Enjoyable

It may have taken getting the iPhone approved for carriage on its service for T-Mobile to start to find new growth opportunities.  That and the introduction of new flexible pricing policies to enable earlier upgrades of phone models have been gold to a company that has been seen as an also ran to the two biggest players, Verizon Wireless and AT&T.  The result, "Total branded customer net additions of 678,000, the strongest growth in four years (and) Record low branded postpaid churn of 1.58%, a decrease of approximately 50 basis points year-over-year".  Two KPIs that challenge every subscription service, higher year over year growth and low churn of existing customers.  A win for T-Mobile on both fronts. 

Certainly the other carriers are paying attention to T-Mobile's differentiated approach to upgrades and contracts.  They are already changing their plans while charging customers more upfront to upgrade earlier.  How consumers embrace this new pricing plans will determine the ongoing growth of these companies.  Clearly T-Mobile is out to take away market share and prove that they can compete with product and service. 

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