The results for the first quarter for T-Mobile have been published. This shows that the company continues to grow as it adds more than 1.4 million subscribers to the network, including nearly 800,000 new post-paid customers. The company achieved a year-over-year revenue increase of $ 19.8 billion, which was above analysts’ expectations.
T-Mobile’s successful quarter was due in part to stimulus checks rolled out on many Americans last quarter to put more money into the economy and give more people a chance to spend. The growth was also attributed to the launch of the Magenta Max 5G plan, which gives customers truly unlimited 5G data.
In the 5G area, T-Mobile continues to praise itself as the best 5G network thanks to Ultra Capacity 5G, which is built up from Sprint’s mid-band spectrum. In this way, T-Mobile’s 5G network can easily reach more users, up to 140 million, while still offering an average data speed of 300Mbps with peaks of up to 1Gbps.
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Arguably one of the best cellular operators in the US, T-Mobile has focused on further merging the Sprint network with its own to increase 5G capacity. Part of that work is getting customers off the Sprint legacy network so that the spectrum can be re-established and the legacy CDMA network can be shut down. T-Mobile said it had moved 50% of Sprint traffic to its own network, along with 20% of Sprint customers.
T-Mobile also reported that net income was unchanged “as higher revenues were offset by cost increases resulting from the Sprint merger, including merger-related costs.” One analyst pointed out that despite T-Mobile’s high post-paid ads, service revenue hasn’t increased as much as it did with competitors like Verizon, which actually lost nearly 200,000 subscribers:
It’s not surprising that T-Mobile has fallen behind in terms of cell phone revenue. The company was pretty aggressive with its plans and promotions, offering free lines and discounts on devices like the OnePlus 9 Pro and Samsung Galaxy S21. Still, T-Mobile noted in its winning call that adding free lines was only a small percentage of its total gross activations.
Meanwhile, the company expects more growth in the second quarter as states open wider and more people return to work.