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T-Mobile Sells 500,000 iPhones in First Month
T-Mobile sold 500,000 iPhones since officially adding the Apple smartphone to its lineup in early April, the company said in a Wednesday earnings report.
Revenue for the first quarter landed at $4.68 billion, down 7 percent year over year. Adjusted earnings were $1.2 billion, up 12.4 percent from the fourth quarter, but down 7.5 percent from last year.
"Our first quarter operating metrics and financial results are showing positive impact from the changes we began making in the fourth quarter," T-Mobile CEO John Legere said in a statement. "We ended the quarter with strong operational momentum, which is continuing into the second quarter, driven by the successful launch of our Un-carrier 'Simple Choice' service plan and the introduction of the iPhone into our device line-up."
T-Mobile now has 34 million customers, adding 579,000 over the quarter. Its churn rate - or the number of customers it lost - was at 1.9 percent, which T-Mobile said was its lowest since the second quarter of 2008.
T-Mobile Completes Merger With MetroPCS
The merger of T-Mobile and MetroPCS is complete, and the combined company - T-Mobile US - started trading on the New York Stock Exchange this morning under the TMUS ticker.
T-Mobile and MetroPCS, however, will continue to operate as separate brands, led by Jim Alling on the T-Mobile side and Thomas Keys for MetroPCS. But they will migrate to a common network infrastructure and similar support functions.
T-Mobile chief John Legere will serve as president and CEO of the combined company, while former MetroPCS vice chairman and CFO, J. Braxton Carter, will now serve as T-Mobile US's CFO.
"The combination of T-Mobile and MetroPCS creates an even stronger disruptive force in the U.S. wireless market," Legere, who rang the opening bell at the NYSE this morning, said in a statement. "Together, as America's Un-carrier, we'll continue our legacy of marketplace innovation by tearing up the old playbook and rewriting the rules of wireless to benefit consumers."
MetroPCS and T-Mobile announced plans to merge in October. Under the deal, MetroPCS will make a cash payment of $1.5 billion to its shareholders for a 26 percent ownership in the combined company; Deutsche Telekom will own 74 percent.
MetroPCS Shareholders Approve T-Mobile Merger
MetroPCS stockholders on Wednesday gave their stamp of approval to the company's merger with T-Mobile.
The move means all the necessary regulatory and procedural hurdles have been dealt with, and the transaction is expected to close by May 1, according to T-Mobile's parent company, Deutsche Telekom.
MetroPCS and T-Mobile announced plans to merge in October. Under the deal, MetroPCS will make a cash payment of $1.5 billion to its shareholders for a 26 percent ownership in the combined company; Deutsche Telekom will own 74 percent.
The newly merged company will trade under the name T-Mobile US and will be listed on the New York Stock Exchange (NYSE) under the symbol TMUS.
"This is a major step for Deutsche Telekom," René Obermann, CEO of Deutsche Telekom Group, said in a statement. "We have accomplished a lot in the USA recently, for example our network modernization and the new T-Mobile USA management team, which has seen considerable success. And we have finalized the contracts with Apple and MetroPCS. The merger with MetroPCS is extremely important, since it enables us to be more aggressive in the USA."
T-Mobile recently launched its 4G LTE network in seven U.S. cities, and finally nabbed the iPhone, which it is offering on a non-contract basis as part of its bid to become the "un-carrier."
T-Mobile Accepting Pre-Orders for $99 iPhone 5
T-Mobile USA on Friday started accepting online pre-orders for the iPhone 5.
The popular Apple smartphone won't be available in T-Mobile stores until April 12, but customers can pre-order it on the carrier's website now. The base 16GB variant in either black or white will set you back $99.99 down, plus $20 per month for 24 months. You can avoid the monthly fee by paying the full price of the phone, $579.99, at checkout.
The carrier is also offering the 32GB and 64GB variants in black and white. The 32GB model is priced at $199.99 down, plus monthly payments of $20 for 24 months, or $679.99 upfront. The 64GB variant costs $299.99 down, plus monthly payments of $20 for 24 months, or $779.99 upfront.
After much speculation, T-Mobile late last month officially announced plans for the iPhone. The carrier also recently ditched wireless contracts and phone subsidies, referring to itself as the "un-carrier." Plans start at $50 per month for unlimited talk and text and 500MB of 4G data. Customers can add 2GB of 4G data for $10 per month per line or get unlimited 4G data for an additional $20 per month per line.
Report: Verizon CEO Would Consider Ditching Contracts
Will T-Mobile's move to a world without contracts start a trend in the U.S. wireless industry?
Speaking with reporters at a company event in New York Wednesday, Verizon CEO Lowell McAdam (left) said he's open to eliminating contracts, according to CNET. McAdam said he's monitoring customer response to T-Mobile's decision, and added that it would be "pretty easy" for Verizon to get rid of contracts as well. Moreover, he indicated he would consider the idea if customers started asking for it.
"I'm happy when I see something different tried," McAdam told CNET. "We can react quickly to consumers' shifting needs."
Verizon did not immediately respond to a request for comment.
This isn't the first time McAdam has expressed interest in the idea. Back in January, the executive reportedly said that ending phone subsidies is "a great thing."
T-Mobile late last month officially flipped the switch on its ambitious plan to court new subscribers: The complete elimination of wireless contracts and phone subsidies. Under the plan, customers pay a smaller upfront fee for their phone, but are charged an additional fee each month until the device is paid in full.
T-Mobile’s 4G LTE Network Goes Live in 7 Cities
As expected, T-Mobile today launched its 4G LTE network in seven cities: Baltimore, Houston, Kansas City, Las Vegas, Phoenix, San Jose, and Washington, D.C.
T-Mobile wants its 4G LTE network to reach 100 million people by mid-2013 and 200 million nationwide by year's end. In areas where 4G LTE is not available, T-Mobile devices will drop down to T-Mobile's existing "4G" network, or HSPA+.
The carrier will offer a number of high-profile LTE devices on its new network, including the BlackBerry Z10 and HTC One, both of which will sell for $99.
T-Mobile will also offer the upcoming Samsung Galaxy S4 on May 1, though pricing information was not released. The Korean phone giant's Galaxy Note II will also run on T-Mobile's 4G LTE network.
Apple iPhone Coming to T-Mobile April 12
T-Mobile customers will finally be able to purchase the Apple iPhone beginning April 12.
The carrier announced that qualifying customers can buy the iPhone 5 nationwide for $99.99 down, plus monthly payments of $20 for 24 months (or $579.99 total), with no contract.
T-Mobile will sell the iPhone 4S, meanwhile, for $69.99 down and $20 per month for 24 months ($549.99), while the iPhone 4 will be on sale for $14.99 down and $15 per month for two years ($374.99). The older iPhones will only be available in select markets.
T-Mobile will start accepting pre-orders on April 5. A pre-registration page is now live.
Last week, T-Mobile ditched wireless contracts, referring to itself as the "un-carrier." Plans start at $50 per month for unlimited talk and text and 500MB of 4G data. Customers can add 2GB of 4G data for $10 per month per line or get unlimited 4G data for an additional $20 per month per line.
Customers can add a second phone line for $30 per month, and each additional line is $10 per month. T-Mobile said there are no caps and no overages, though users will be throttled if they exceed their allotted data.
T-Mobile Kills Wireless Contracts, Starts Monthly Plans at $50
7UP might be the uncola, and T-Mobile is, in many ways, now trying to showcase itself as the "un-Carrier" in a wireless world crowded by three bigger dogs than it.
The company, currently sitting in a festive fourth place behind AT&T, Verizon, and Sprint (even with the proposed merger between it and MetroPCS, which awaits stockholder approval), has officially flipped the switch on one of its more ambitious plans to court new subscribers: The complete elimination of wireless contracts. You know, those, "you're locked in for x amount of time" deals that you often sign when looking to upgrade your old and busted phone on the cheap.
So how, then, does this process work in T-Mobile's new world?
First off, interested purchasers of new smartphones will still find they're able to get a deal on their new devices — sort-of. While T-Mobile isn't requiring a contract for one to pick up a discounted phone, the company will nevertheless add a surcharge to one's monthly bill for a set amount of time depending on the price of the phone selected. Avoiding this fee is easy, provided one pays the full price of the phone up front.
Removing that part from the equation for a moment, T-Mobile's base plan for unlimited talking and texting now starts at $50 per month – and includes 500MB of "speedy" data. Technically, it appears as if all of T-Mobile's plans include unlimited data, with the catch being that T-Mobile throttles the data rate down to measly 2G speeds once one exceeds one's paid-for allotment of "high-speed data."
OpenSignal Finds T-Mobile LTE in 8 Cities
T-Mobile isn't saying where it's launching LTE, so it's a good thing we have OpenSignal to do our legwork for us. With its crowdsourced Android app, OS reports today that it has detected T-Mobile's new LTE network in eight cities: Denver, Las Vegas, Kansas City, New Orleans, New York, San Diego, San Jose, and Seattle.
"The fact that our app has detected a T-Mobile LTE network in these cities suggests that they will be included in the initial LTE rollout," OS spokesman Samuel Johnston said.
And while T-Mobile has only announced the BlackBerry Z10 and Samsung Galaxy Note II as LTE devices, OS says it's also seen T-Mobile Samsung Galaxy S III and Galaxy S4 phones hitting the LTE network.
How fast is it? Johnston said OSM's tests saw 25Mbps downloads, 8Mbps uploads, and latency around 40ms. That's extremely fast for a 5x5 LTE network like T-Mobile is running.
"Obviously the network is under a very light load right now and these speeds will come down," Johnston said.
T-Mobile is the last national carrier to launch LTE. It has pledged to cover 100 million people with LTE by midyear. Earlier this week the company treated us to a test of how the network will function after the upcoming MetroPCS merger, when it can double its spectrum in many markets to 10x10.
T-Mobile Expected to Fire Up 4G LTE Network on March 26
T-Mobile has sent out invitations for an "exclusive" media event on March 26 in New York City, where the wireless carrier may switch on its 4G LTE network.
"We're still a wireless company," the invitation reads. "We're just not going to act like one anymore."
While the invitation is light on details, T-Mobile undoubtedly has some major changes on tap. For starters, the carrier is widely expected to officially launch its 4G LTE network, and the BlackBerry Z10 and Galaxy Note II will likely be the first handsets to support T-Mobile's upgraded network.
At CES, T-Mobile CTO Neville Ray said the carrier would be launching LTE in "another week or two." Though the company still hasn't announced a single official LTE city, it's aiming to cover 100 million people with LTE by midyear and 200 million by the end of the year.