T-Mobile Q1 2022 earnings beat expectations on strong 5G demand

T-Mobile startup screen
(Image credit: Samuel Contreras / Android Central)

What you need to know

  • T-Mobile posts a positive Q1 2022 earnings report.
  • The carrier gained more than 1.3 million customers, its highest in eight years.
  • T-Mobile also added 3x more broadband internet customers compared to the same period last year.

T-Mobile's performance continues to impress as the carrier releases its first-quarter 2022 financial earnings. Total service revenue increased 7% year-over-year to $15.1 billion thanks to impressive postpaid net additions of 1.3 million, its highest first-quarter adds in eight years.

The carrier undoubtedly benefitted from its continued leadership in 5G thanks to its merger with Sprint, which comes up on its second anniversary. The merger provided T-Mobile with the mid-band spectrum necessary to roll out impressive 5G range and speed across the country. The carrier also continues to expand its reach to more Americans with some of the best 5G plans around. This includes smaller, rural markets, where coverage is typically low regardless of carrier. T-Mobile says new accounts in rural markets grew by 40%. 

“T-Mobile continues to be the growth leader in this industry, with another beat and raise quarter that delivered front-of-the-pack postpaid, new account, and broadband customer results,” said Mike Sievert, CEO of T-Mobile, in a statement on Wednesday. “Only the Un-carrier’s unparalleled network leadership in the 5G era has enabled us to give customers the best network and best value without compromise, and effectively solve one of the most prevalent pain points in the wireless industry.

Meanwhile, AT&T reported less than 1 million wireless postbaid customer additions, while Verizon lost customers in the first quarter. These companies are notably behind T-Mobile in terms of their 5G rollout and have spent billions in spectrum auctions and deployment for the highly-coveted C-Band to regain lost ground.

T-Mobile is still in the midst of its 3G shutdown, which it previously delayed at the behest of Dish Wireless which relies on it for its Boost Mobile customers. However, as it shuts these sites down, the spectrum will be repurposed to boost the carrier's 5G network further.

The company also continues to offer affordable 5G smartphones like the upcoming OnePlus Nord N20, as well as enticing promotions that are likely to help bring more customers to the network, including the new Google One offer that provides subscribers with unlimited Google Photos storage.

The carrier also boasts impressive customer additions for its T-Mobile Home Internet service, powered by its 5G network, and provides an easy, low-cost alternative to other ISPs, particularly in rural areas.

A recent report predicts that while 4G still leads in the U.S., that trend will slowly change in the coming years as 5G data consumption exceeds 4G by 2023 and 5G subscribers finally become the majority by 2024. So far, T-Mobile appears to be driving that transition, but the other carriers aren't giving up that easily.

Derrek Lee
News Editor

Derrek is a long-time Nokia and LG fanboy who loves astronomy, videography, and sci-fi movies. When he's not working, he's most likely working out or smoldering at the camera.