T-Mobile is reportedly on pace to add 626,000 postpaid phone net adds in Q1twi
T-Mobile is reportedly on pace to add 626,000 postpaid phone net adds in Q1, according to analysts from Morgan Stanley Research.
And, although this would be a 20% year-over-year (YoY) decline, the carrier is expected to carry the rest of the industry forward.
Analysts expect Verizon to see postpaid phone net adds fall by 83,000 subscribers in Q1, AT&T is anticipated to lose roughly 70,000 net postpaid customers, and Sprint is predicted to see a net loss of 12,000 subscribers. T-Mobile’s gains in postpaid phone subscribers compared with the rest of the US market is important, as these customers are less likely to switch network operators due to their mobile phone agreements with their operators, and have a tendency to spend more on average than prepaid phone subscribers.
The expectation that T-Mobile will be the only carrier to add new postpaid customers in Q1 is a major boon for the company. This builds on the carrier's success in this area, as it's led the US market in postpaid phone adds for the last 16 quarters: T-Mobile added 891,000 postpaid phone subscribers in Q4 2017, and Verizon announced it made 431,000 net phone additions, while AT&T and Sprint trailed behind with 329,000 and 184,000 new postpaid phone adds, respectively.
Part of T-Mobile's success in this capacity is thanks to its consumer loyalty, which is higher than that of its competitors. Twenty-three percent of T-Mobile subscribers said nothing could make them switch to another carrier, according to Business Insider Intelligence’s Digital Telecom Consumer Report (enterprise only). That was seven percentage points higher than AT&T, the second-place finisher on this measure of loyalty. Loyalty is becoming increasingly important for telecoms, since fewer subscribers than ever are tethered to their mobile provider by long-term contracts.