Home - , , - MetroPCS Posts $38, $39 Average Revenue Per User In 1st Quarter Of 2016

MetroPCS Posts $38, $39 Average Revenue Per User In 1st Quarter Of 2016

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It is no secret that for most wireless carriers out there, the priority is either getting their postpaid subscribers to stay on their network, or getting postpaid subscribers from competitors to switch to theirs. As for prepaid customers, they are sometimes treated as an afterthought. But for T-Mobile, it appears that the third biggest wireless carrier in the United States is putting added emphasis on gaining prepaid users, and it has the numbers to to prove it.

During the first quarter of this year, T-Mobile registered a record 807,000 net prepaid customer additions. Not only that, the major US wireless carrier posted an eleven fold year over year improvement in terms of branded prepaid net customer additions, plus 72 percent sequential growth, thanks largely to its prepaid arm, MetroPCS.

Additionally, T-Mobile also managed to achieve a branded prepaid customer turnover rate of 3.84 percent during the first quarter of 2016. That churn rate is down from the 4.62 percent it recorded during the previous year, and easily a significant improvement over the 4.2 percent it posted during the final quarter of 2015. But perhaps the most impressive result is the average revenue per user (ARPU) that MetroPCS posted for the first quarter of this year -- registering $38, $39 each, which is a very good showing for T-Mobile’s prepaid arm.

On the retail level, T-Mobile is also making an effort to pursue prepaid customers aggressively, just like what it did in facilitating rapid growth in its postpaid division. To date, MetroPCS has about 7,500 retail locations across the US. And according to John Legere, the chief executive officer of T-Mobile, a thousand more are coming before the end of 2016.

Now compare this with industry leader Verizon Wireless who also has its prepaid arm, TracFone -- well, actually a mobile virtual network operator (MVNO) on the Big Red that offers prepaid mobile services. Scared of taking revenues away from its postpaid business, Verizon does not chase after prepaid customers that much. The result is that during the first quarter of this year, the Big Red lost 177,000 net retail prepaid customers. Still, this is not worse than the 188,000 it lost during the first quarter of 2015.

With MetroPCS’ very promising first quarter financial results, other rival networks should look out now, especially AT&T (with its own prepaid brand, Cricket Wireless) and Sprint. Both competitor carriers will be releasing their own respective quarterly reports anytime soon.


Source: Fierce Wireless

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16 comments:

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  1. I've been with Metro almost 3 years now. It just keeps getting better and better.

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    1. I'm no fan of T-Mobile's threadbare network, but it does seem to be improving.

      More than you can say for Sprint.

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  2. "According to (CEO) Legere, approximately 80 percent of postpaid port-ins come from rival carriers AT&T and Verizon, with the lion’s sharing coming from AT&T. Porting ratios by carrier for the quarter were 1.75 for AT&T, 1.34 for Verizon and 1.35 for Sprint, Legere said. The Un-carrier’s overall postpaid porting ratio was 1.5, down from 1.67 last quarter.

    While T-Mobile is mainly positioned as a competitor for AT&T and Verizon, Legere said the Un-carrier is using its MetroPCS prepaid brand to target Sprint customers.

    “Our way to compete with Sprint is MetroPCS,” Legere said. “We are very much targeting Sprint customers with MetroPCS offers.”

    -Wireless Week
    http://www.wirelessweek.com/news/2016/04/t-mobile-revenue-beats-postpaid-net-adds-top-1m-12th-straight-quarter

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  3. I curious about how $38, $39 (does this mean "$38 to $39"?) compares with other prepaid carriers? How does it compare with postpaid revenue?

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  4. I'd say that's a decent ARPU for a prepaid carrier.

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  5. "$38, $39" is a direct quote from Legere during the investors conference call. I think he means "about $38 or $39".

    T-Mobile's Quarterly Report lists Prepaid ARPU as $37.58 and postpaisd ARPU as $46.21

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    1. last time i checked AT&Ts Crickets ARPU was around $45.

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    2. AT&T Q1 - Cricket And GoPhone prepaid additions 500,000.

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    3. 500,000 is a lot less than the 807,000 added by T-Mobile branded prepaid.
      Why can't Cricket do any better?

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  6. Before metro had over +9000 locations and now they are down to 7500 locations. This indicates that Tmobile is restructuring metro distribution model to improve Cost reduction. Furthermore, what about the cost of acquiring new customers?

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    1. Where did you see the figure of 9000+ locations? MetroPCS is increasing retail locations, not decreasing them. They are adding 1000 this year. They will add locations in all of the new Band 12 coverage areas.

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    2. I don't think 9000 is accurate for retail locations. As a regional operator, MetroPCS never had more than 349 stores before T-Mobile bought them. I also saw a figure of 311 Metro stores.

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  7. The Metro stores, like the MetroPCS network itself, is hard to find. However, are brick-and-Mordor stores really needed?

    I've had lousy customer service at most (from other carriers*, and other businesses) and much better experiences online. Maybe it is not a restructuring, but a phasing out? Seems like the only thing such places are good for is being able to check out and hold a handset before you order it from the online source.


    * Remembering the guy at the Boost storefront who said that Virgin had nothing to do with Sprint, and that Virgin was entirely owned by a comedian Russell Brand.

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  8. is there a way to get MetroPCS sim card for less (online is $10+tax)?

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    1. No, you can't buy MetroPCS SIM cards on Amazon. They are selling new ones on eBay for about $6-9. Don't buy a "Used" one.

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  9. Wish MetroPCS had a presence in Iowa.

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