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T-Mobile gains record 2.4 million customers, as Sprint acquisition talks heat up
As Sprint is rumored to make a move on T-Mobile this summer, John Legere’s company announced another quarter of solid growth, with a record 2.4 million customer additions in Q1 2014.
It’s the fourth consecutive quarter when T-Mobile registers more than 1 million additions and the first quarter ever with more than 2 million new customers. T-Mobile’s performance is even more impressive when you consider the mediocre quarters reported by AT&T and Verizon, as well as Sprint’s continued losses.
While T-Mobile announced records when it comes to new customer additions and low churn rate, earnings were actually lower 12.2 percent compared to last quarter, which the carrier blames on the “significant acceleration in customer growth.” Average revenue per user also declined slightly, though the decline was smaller than in Q4 2013.
Overall, it was a blowout quarter for the company led by the outspoken John Legere, and another sign that T-Mobile’s aggressive “Uncarrier” marketing campaign and fresh take on customer service are successful.
Sprint T-Mobile offer this summer?
While T-Mobile is growing steadily, Sprint is bleeding money and customers. But things may change radically if Sprint boss Masayoshi Son has its way. The CEO of Softbank, the Japanese corporation that owns a majority stake in Sprint, is pushing hard for a T-Mobile buyout that could be announced in June or July.
Bloomberg reports that Sprint finalized talks with several banks that are willing to finance an acquisition, though any deal depends on the FCC’s and Department of Justice’s approval. These bodies shot down AT&T’s proposed T-Mobile acquisition in 2011, but Masayoshi Son hopes he can convince regulators that a Sprint-T-Mobile marriage would be in the best interest of American consumers.
If the deal goes through, the leading candidate for heading the combined company would be John Legere, say sources close to the matter.