T-Mobile USA sees strong return to growth

08 August 2013 | Kavit Majithia


Deutsche Telekom has seen an increase of 700,000 subscribers in its US business after the company’s T-Mobile USA subsidiary saw a strong return to growth.

The German operator had struck a deal to sell off the unit in 2011 to AT&T in a mammoth $39 billion deal, only for it to be disapproved by US telecoms regulators FCC.

T-Mobile USA struck a deal to merge with MetroPCS in May, with the company now reportedly planning an aggressive marketing campaign as part of a strategy to continue its growth in subscribers through acquisitions.

Group revenue grew by 5.4% to €15.2 billion in Q2 2013, compared to the same period last year, and reflected the merger with MetroPCS, in addition to a rebound in handset sales.

Shares also rose by almost 7.5% today, the company’s biggest increase in two years and following the positive results and Deutsche Telekom confirmed it would continue to invest in the US business

According to analysts, the company’s results were particularly impressive considering it added 688,000 contract customers in Q2, which was a reversal of 490,000 customers it lost on average in the previous eight quarters year on year.

It is thought the upturn in results was also due to the company’s new strategy to split the cost of handsets and network usage, and being able to offer the Apple iPhone for the first time.

It is presently in the process of expanding its 4G network in the US, with expectations of an additional 500,000 to 700,000 contract customers in the second half of this year.

“Our strategy in the US is working,” commented René Obermann, outgoing chief executive at the company.