Since Legere took over the wheel at T-Mobile USA, many people have been wondering how T-Mobile can keep making a profit when they are dropping prices left and right. Paying off ETF’s and doing a ton of other incentives. Which are not a limited time promotion. Well according to a Wells Fargo Analyst, it seems that this has not negatively affected T-Mobile USA. In a note sent out today, Wells Fargo analyst Jennifer Fritzsche stated that T-Mobile should reach their EBITDA target of $5.6 billion to $5.8 billion for 2014. Which includes the Q4 EBITDA of $1.7 billion. She also noted that the launch of the iPhone 6 and iPhone 6 Plus was a big factor in T-Mobile’s Q4 success. I’m sure the Galaxy Note 4, helped as well. T-Mobile stated earlier this week they added 2.1 million net subscribers. She also said that if the iPhones hadn’t had supply issues right after launch, the carrier would have posted even higher numbers.
Meanwhile we’re hearing from other analysts that AT&T and Verizon are adding a ton of customers, but their churn rate has risen over the previous quarter. Which means more customers are leaving the big two carriers than in previous quarters. It might not be a big deal because they are both expected to still add close to 2 million customers each. Keeping a very strong lead ahead of Sprint and T-Mobile.
Overall, it looks like a good Q4 for all four carriers. Which doesn’t happen often, if ever. Usually either T-Mobile or Sprint will post a loss, but so far it looks like both are reporting a huge gain. With Sprint adding near 1 million and T-Mobile at over 2 million subscribers. Not bad at all. And we’re getting closer to a competitive wireless industry. Which is going to benefit each and every one of us.
How many of you are surprised that all of T-Mobiles incentives and promotions are not negatively affecting the carrier? Let us know in the comments below.
The post Analysts Saying T-Mobile’s Competitive Pricing is not Negatively Affecting Them appeared first on AndroidHeadlines.com |.
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