1 Huge Win for T-Mobile US Inc

T-Mobile  (NYSE: TMUS  ) has been riding high in the domestic wireless industry lately, thanks largely to its aggressive tactics that are putting major pressure on larger rivals. According to a recent Counterpoint Research report, The Un-Carrier has now risen to become the No. 3 player in the domestic market with smartphone sales, surpassing Sprint  (NYSE: S  ) . 

If measured based on total connections (including feature phones), Sprint still comes out ahead by a small margin. However, smartphone subscribers are far more valuable than feature phone subscribers, and smartphone penetration has hit a new high in the U.S. of 87%. 

With T-Mobile's gains, the rumored merger with Sprint continues to look unlikely. Regulators have tried to pre-emptively and publicly downplayed the likelihood of such a merger getting cleared, but that hasn't stopped Masayoshi Son from lobbying Congress. If combined, Sprint and T-Mobile would have a total subscriber base within spitting distance of Verizon  (NYSE: VZ  ) , which would dramatically reduce its incentive to compete aggressively on price.

In this segment of Tech Teardown, Erin Kennedy discusses T-Mobile's rise with Evan Niu, CFA, our tech and telecom bureau chief.

(Relevant segment begins at 4:96)

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  • Report this Comment On May 24, 2014, at 1:23 PM, NDaGame wrote:

    "According to Neil Shah, analyst at Counterpoint Technology Market Research T-mobile bought 6 million smartphones in the first quarter, compared with Sprint's 5 million."

    Hmmmm - When did purchases translate into actual sales?

  • Report this Comment On May 24, 2014, at 3:09 PM, LowellUkulele wrote:

    Despite any short-term improvements in customer acquisitions, profitability is the challenge for both T-Mobile and Sprint. Together, there long-term prospects are much better as a challenger to the duopolists Verizon and AT&T, who surely have their multitude of lobbyists hard at work to ensure T-Mobile and Sprint can't get together to form a strong No. 3 wireless carrier.

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Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2970723, ~/Articles/ArticleHandler.aspx, 12/18/2014 8:39:06 AM

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