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