T-Mobile

Paying off your ETF, dropping all phones to $0 down and launching wideband LTE

T-Mobile let us in on its plans for Uncarrier 4.0, the latest in its initiatives to shake up the U.S. wireless industry, at CES. Along with the requisite swearing and competition bashing that come with T-Mobile CEO John Legere being on stage, the magenta network unveiled a few new carrier initiatives and gave us some insight into how its business has grown throughout 2013.

All of the news, in chronological order:

If you happened to miss the event altogether, you can watch it directly from T-Mobile (requires a sign-up) or follow along with our commentary on the liveblog.

 
There are 44 comments

Floss82 says:

John Legere for President!!! That is all.

drokssilva says:

Yes. A no bullshit president.

We'd be the uncountry!

Posted from my Nexus 7(2013).

quailallstar says:

Awesome and true...

Posted via Android Central App

mwara244 says:

Only if he promises to put every other corporation in their place as well. Corporations keep their money over seas, the jobs over seas, pay no taxes, but stay here in the US for its securities and freedoms without investing anything into America. Corporations need to pay their fare share or gtfo.

Droidanomix says:

It was a joke dude. Calm down or GTFO

It may have been a joke but in ten years when the US of A have none of these current securities....

Posted via Android Central App

anon8383393 says:

No they don't, anyway thanks for the car manufacturing jobs
-Britain

ZD

But just having the companies based in the US helps your doomed economy

Posted via Android Central App on my Nexus 7

unopepito06 says:

Sad but true, he is in a far better position for change as Corporate CEO than President of the United States. xD

alexlam24 says:

I would vote

Posted via Android Central App

commander 4 says:

Absolutely

Plain and simple nothing beats Tmobile or Mr. John Legere.

He's definitely someone who is available to his customers and cares about the direction of the carrier game.

Posted from my Galaxy Note 3 on Tmobile via Android Central App

ScottJ says:

Plain and simple nothing beats richardyarrell for comic relief.

Oh yeah. Period.

Floss82 says:

Lol exactly! He'll be perfect for this crazy world we live in :p but dude really got a vision and knows how to shake the competition up!

RaiderWill says:

Well.. I've said it here enough times but after all this I'll say it again..
By the summer of 2015 T-Mo WILL be the Number One Carrier in the U.S.
No.. Not for you.. and you.. and you.. that will say "T-Mo sucks in my area!"
Too Bad.. for YOU.
But for those of us that DO currently have Excellent coverage and for those that will get it in the coming months, we will have the Fastest.. Cheapest and most Innovative Carrier in the U.S
And they will have a 51%-60% share of the market by the summer of 15'.
______________________________________________________________________________

T-Mobile..Forever.

bkosh84 says:

Bahaha, no they won't but that's a very.. Interesting comment, almost "boys club"-ish.

First off, the only way they will have 50-60% of the market by then is if they get their rural area (only 3% of the United States is urban btw..) covered like Verizon and AT&T have.. When it comes down to it people care about making sure they get in coverage in Grandma's backyard in podunk USA so no matter how many changes they make to the company and how many "uncarrier" gimmicks they pull out of their arse, if they don't get the rural areas taken care of then they won't never be number 1.

So they will be #1?

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Balthazar B says:

"only 3% of the United States is urban"

Uhhhh...where are you getting that statistic, "off the Internet"? Maybe the statistic refers to land mass, but not to population. T-Mo probably covers about 75% of the US population with data services, and more for voice.

eahinrichsen says:

I'm pretty sure that referred to geographical area, although I don't know how accurate it is.

That is a major sticking point for T-Mo, though. And their building penetration is not nearly as good as AT&T's. I would love to use T-Mo because I like their rate plans and what they've been doing lately, but if I can't get a signal in my living room, they're useless to me.

HalizDad says:

It's 2014...You should be on WiFi when in your living room...

RaiderWill says:

SEE WHAT I MEAN?
I JUST SAID "YOU AND YOU AND YOU"
AND S-T-I-L-L 3 COUNTRY BUMPKINS POST STUPID COMMENTS..
READ!!!!!! IT'S NOT IN YOUR AREA AND NEVER WILL BE!!!!
YOU AND YOU AND YOU!!!!!!!!!!
DAMN.
WE DON'T CARE ABOUT YOU PIG FARM PEOPLE.

cguella says:

This guy and company are amazing.

MartyDel says:

Always have had good experiences with the T-Mo. I guess that's why I've been with them since 2003. From customer service to the phones to the coverage, all these very good, and I've lived all up and down the West Coast (your mileage may very of course) but I've been a happy camper to say the least. Nice to see they're starting 2014 off with a bang and soo soo very glad they didn't get swallowed up by the likes of AT&T... Long live The T-Mo!!

Posted via Android Central App

Jon_Doh says:

Desperation. Pure and simple.

JeffDenver says:

Seems to be working. Verizon has managed to piss off a lot of people.

carraser891 says:

U gotta wonder though with all this stuff how are they making a profit?

Posted via Android Central App

NoNexus says:

They aren't. Even with the subscriber gains that they are getting from this, costs are going up faster than revenues. It is an unsustainable business model.

They are making the numbers look good to attract a buyer

HalizDad says:

http://investor.t-mobile.com/phoenix.zhtml

Check Q3 before typing anything negative about T-Mobile in the future...

NoNexus says:

I did and 2 things stood out.

First, they still lost money that quarter, even with the subscriber gains.

Next, and MUCH more troubling the operating costs for that quarter rose at a higher percentage than revenues.

That is an unsustainable business model and something has to change.

HalizDad says:

You need to go to school and take some accounting classes. If you looked at the Capex instead of the FCF, it's no wonder you're lost. They MADE money, even with the incentives, grew their subscriber base by a million people 2 and 3Q and have 2.4B cash on hand. I agree it's unsustainable, simply because there are only 300M people in the U.S.

Edit: I take that back...Even a monkey could read the powerpoint slides T-Mob has published for Q3. They MADE money, grew subscribers, and are "Leading the industry" in Q3. They went from a Q4 2012 cash on hand of 397M to Q3 2013 of 2.4B all while growing their network.

NoNexus says:

are you daft? go to the link you provided and look at the balance sheet. They lost 36M, and the costs went up dis-proportionally to the gain.

Google: t-mobile third quarter loss and you will see it in plain english since you cannot see past the hype.

Your wrong.

HalizDad says:

That "loss" is not a true loss. You are looking at it with such a narrow focus that you are missing the big picture. Q3 2012 loss = 7.1B Q3 2013 loss = 36M...You call that unsustainable? They made money in almost every metric which is why their stock is climbing. I'm looking forward to their Q4 balance sheet showing 2.8M new subscribers (Q2+Q3+Q4) all paying them money. They lost money in ops, but if you go from 397M cash on hand in one year, to 2.4B in the next, that 36M "lost" isn't really lost, it's just sitting in another column, and probably so they could use it as a writedown.

I manage a 1.6M operating budget every quarter. My contract services line showed me in the hole 1.4M last Quarter, YTD. I finished out the year with 800k in the black...How could such a thing happen?

NoNexus says:

Loss is still loss.

Cash on hand is not relevant, I may have 1000 in my pocket, but if I owe 3000 I am still at a loss of 2000.

Bottom line, they lost money on the balance sheet. The 7.1B was a writeoff.

If you do not know how your operating budget came out that way, sucks to be your company.

Ummmmmm, need to take into account (pun intended) their business model and not simply the numbers. The costs have gone up as they have purchased phones for which they have paid for upfront (to provide to the customer) while deferring the payment from the customer from whom they will receive more than they paid for the phone. Customer's still have to pay for the services although I'm sure there will always only be marginal profits percentages showing in order to keep gaining customers and make out on the phone. Done

ScottJ says:

You're right but don't feed the troll.

Trolling hard. lol

JaHollen says:

Having almost 1 million more customers in a single quarter probably helps.

eahinrichsen says:

I'm pretty sure we'll see some woeful Q4 financials once they make their earnings statements. They're adding customers like crazy, but the amount they're spending to acquire those customers does not make for a sustainable model.

CoolBeit says:

But dumping all of your potential profits into gaining a bunch of customers is the proper way to run a successful business for the long term. As long as they change gears and dump all that money into KEEPING those customers in 2014, T-mobile is going to do well.

And I am one of those customers that will only be willing to live with crappy network coverage for so long. There are a lot of ATT and Sprint MVNOs offering competitive prices and better coverage right now, so let's hope T-mo can convince us to stay.

NoNexus says:

Somehow they will come out on the positive side for Q4 I think. They only lost 36M in Q3 and they need to make things look good on paper for a possible investor and/or buyout. You will see one, maybe 2, quarters with positive results before it all falls down. Other than that, your right.

HalizDad says:

I can't wait until next January... I've never wanted to say. "told ya so" so bad in my life when Tmob is still Tmob.

Posted via Android Central App

ceric20 says:

T-Mobile better worry about filling in the holes of coverage in their network, before they go and try all this... Just look at upstate NY for example.. yes its good if you live in a city but if you go outside of any city no coverage?? I want my phone to work where i go... not just at home!!

anon8383393 says:

Basically the most British like carrier in America (yay thee)

Posted via Android Central App on my Nexus 7

setitoff215 says:

This uncarrier is a gimmick bunch of bs I went into to the tmobile store and they wanted a down payment of $250 plus the monthly bill and extra fees $105 a month smh and that's with me giving them my galaxy s4 from Sprint which they where only giving me a $143 credit whatever happened with the Zero down is all bs!! Well T-Mobile nice try too good to be true

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ScottJ says:

You must have shitty credit. Sorry.