T-Mobile US Inc (TMUS) Topples Sprint To Become The Third Largest Carrier With 58.9 Million Subscribers
T-Mobile US Inc (NYSE:TMUS) has dethroned Sprint Corp (NYSE:S) to become the U.S. No. 3 carrier, boasting 58.9 million subscribers compared to 56.8 million on Sprint. With this development, it seems T-Mobile’s Uncarrier promotions are paying off. T-Mobile has been wooing subscribers from rival networks with free international roaming and competitively priced-plans.
It is official that T-Mobile is the third-largest carrier in the U.S., pulling ahead of Sprint. Sitting ahead of T-Mobile currently are AT&T Inc (NYSE:T) and Verizon Communications Inc. (NYSE:VZ). T-Mobile is hoping that its Uncarrier strategy will enable it to grab subscribers from these rivals as well, to bolster its user base.
Stealing from competitors
With the saturation in the U.S. wireless market, carriers are pushing out competitive plans to inspire defection from rival networks. Under its so-called ‘Uncarrier program,’ T-Mobile is going to extreme lengths to steal subscribers from rivals. The company moved to allow free calls to Canada and Mexico while also implementing data rollover. Additionally, T-Mobile scrapped extra charges on international calls.
2 million subscribers ahead of Sprint
T-Mobile US Inc (NYSE:TMUS)’s Uncarrier promotions are credited for its rise to the No. 3 spot in the U.S. wireless market. With 58.9 subscribers, T-Mobile stands ahead of Sprint with over 2 million subscribers.
After unseating Sprint, T-Mobile is expected to train its eyes on AT&T and Verizon, hoping to weaken their subscriber base. In addition to its Uncarrier strategies, T-Mobile is also upgrading and expanding its networks as another competitive advantage.
Although Sprint has also jumped on the competitive plans bandwagon, targeting switchers with a family plan, catching up with T-Mobile US Inc (NYSE:TMUS) may be a serious challenge.
Competition in the U.S. wireless industry can’t be won by competitive pricing along. Network quality is also a key issue. However, Sprint doesn’t seem to have a lot of money to spend on projects like network upgrades. The company needs to acquire more spectrum, but it might be forced to dilute its stock to raise funds.
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