T-Mobile (TMUS) Expected to Report Positive Q2 Subs Growth (AAPL)
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(Updated - July 9, 2013 3:24 PM EDT)
T-Mobile US, Inc. (NYSE: TMUS) said to swing to contract subscriber growth in Q2, according to Bloomberg today. The company will be giving a progress report at an annual meeting in New York tomorrow.
Growth in contract subs would come months ahead of T-Mobile's plan, sources said. The move comes as CEO John Legere dubbed the company an "un-carrier" last September, hoping to distinguish the Company from larger rivals like Verizon (NYSE: VZ) and AT&T (NYSE: T).
Legere began to sell smartphones on installment plans, versus the industry norm of subsidizing the devices. In addition, T-Mobile US has worked to update its long-term evolution (LTE) network, providing faster speeds for subscribers.
T-Mobile last reported having 20.1 million subs at the end of March with 6 million pay-as-you-go customers. Bloomberg said today that the last time T-Mobile reported an increase in subs was March 2010.
Additionally, Deutsche Telekom, which holds 74 percent of T-Mobile shares, is prevented from selling any of the stock on the market over the next 18-months, per the recently acquisition of MetroPCS by T-Mobile. Deutsche Telekom may also choose to divest its stake before the lockup period expires, though better performance from T-Mobile means Deutsche Telekom can be a little more picky about the price it draws.
Some might speculate whether or not offering the Apple (Nasdaq: AAPL) iPhone had anything to do with the metric. Sales of the device begin in April for T-Mobile, with the carrier debuting the device for $99 upfront with 24 months of $20 payments.
After spiking higher, T-Mobile gave back some early gains and is up 3.1 percent on the session.
T-Mobile US, Inc. (NYSE: TMUS) said to swing to contract subscriber growth in Q2, according to Bloomberg today. The company will be giving a progress report at an annual meeting in New York tomorrow.
Growth in contract subs would come months ahead of T-Mobile's plan, sources said. The move comes as CEO John Legere dubbed the company an "un-carrier" last September, hoping to distinguish the Company from larger rivals like Verizon (NYSE: VZ) and AT&T (NYSE: T).
Legere began to sell smartphones on installment plans, versus the industry norm of subsidizing the devices. In addition, T-Mobile US has worked to update its long-term evolution (LTE) network, providing faster speeds for subscribers.
T-Mobile last reported having 20.1 million subs at the end of March with 6 million pay-as-you-go customers. Bloomberg said today that the last time T-Mobile reported an increase in subs was March 2010.
Additionally, Deutsche Telekom, which holds 74 percent of T-Mobile shares, is prevented from selling any of the stock on the market over the next 18-months, per the recently acquisition of MetroPCS by T-Mobile. Deutsche Telekom may also choose to divest its stake before the lockup period expires, though better performance from T-Mobile means Deutsche Telekom can be a little more picky about the price it draws.
Some might speculate whether or not offering the Apple (Nasdaq: AAPL) iPhone had anything to do with the metric. Sales of the device begin in April for T-Mobile, with the carrier debuting the device for $99 upfront with 24 months of $20 payments.
After spiking higher, T-Mobile gave back some early gains and is up 3.1 percent on the session.
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