GET TO KNOW T-MOBILE IN JUST 8 SLIDES

What does T-Mobile do?

T-Mobile is the third-largest wireless carrier in the U.S., based on subscriber numbers. The self-proclaimed “Un-Carrier” sells cellular voice and data plans for phones and tablets, as well as cellular service for wearable devices and mobile hotspots. The carrier operates the Metro PCS brand and is partially owned by Deutsche Telekom, a German telecommunications company which holds 66% ownership of T-Mobile.

Image source: T-Mobile.

Cellular subscribers: As a wireless carrier, T-Mobile’s primary focus is gaining wireless subscribers — and the company does this very well. Over the past 10 quarters, T-Mobile has managed to add at least 1 million net subscribers per quarter. As of Q3 2015, the carrier had a total of 61 million subscribers, surpassing Sprint’s 58 million subscribers.

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Data source: T-Mobile SEC filings.

T-Mobile’s key segments

Revenue per user: Like all other wireless carriers, T-Mobile is also focused on its average revenue per user, or ARPU. In Q3 2015, T-Mobile’s ARPU was $43.45, compared to rival Sprint’s $45.04.

T-Mobile’s key segments

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Source: Strategy Analytics.

While T-Mobile’s made huge gains in both its subscriber numbers and its 4G LTE network, the carrier still falls short of Verizon, AT&T, and Sprint’s network performance, according to the latest data from RootMetrics.

T-Mobile’s network performance

Source: RootMetrics.

How T-Mobile performed in the most recent quarter

• Total revenue was up 7% year over year, to $7.8 billion.• Net income of $138 million, or $0.15 per share, compared to

a loss of $94 million in the year-ago quarter.• Free cash flow of $411 million.• Net subscriber growth of 2.3 million.• Reached a total of 300 million LTE points-of-presence (POPs)

in 2015, ahead of schedule.• Set guidance for full-year branded postpaid net adds to 4.2

million. Image source: T-Mobile.

Q3 2015

How T-Mobile is expanding

Through a series of Un-Carrier events, the carrier offers many of its subscribers free video streaming through more than 20 sources (like Netflix, Amazon Prime, and others), and free music streaming through apps like Apple Music, Pandora and Spotify.

Image source: T-Mobile.

How T-Mobile is expanding

The carrier also offers international calling and data usage at no extra charge, monthly data rollover for most subscribers, and recently increased the monthly amount of 4G LTE data provided to customers at no extra charge.

Image source: T-Mobile.

Potential trouble spots

While giving all those things away to subscribers is spurring T-Mobile’s growth, it comes at a price. T-Mobile will eventually have to raise prices in order to sustain its business. Deutsche Telekom CEO Timotheus Höttges told Re/code last year that T-Mobile’s strategy is unsustainable, and that, “You have to earn your money back at one point in time.”

Image source: T-Mobile.

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