CEO Mike Sievert is “delighted” with T-Mobile for Business’ Q2 performance.
T-Mobile reported strong numbers in its second quarter earnings and joined rivals AT&T and Verizon in business wireless growth.
T-Mobile reported 1.3 million Q2 postpaid net additions, a number it says leads the industry. For comparison, AT&T reported about 1.16 million postpaid net additions in Q2. T-Mobile company reported 1.2 million in Q1 and 1.1 million in Q4 2020.
T-Mobile reported Q2 revenues of $19.95 billion with service revenues totaling $14.5 billion. Moreover, T-Mobile raised its guidance for the next quarter.
“Stellar postpaid customer gains and industry-leading service revenue growth translated into industry-best growth in profitability and cash flow, and drove another beat and raise quarter – all fueled by unprecedented synergies that only T-Mobile can deliver,” T-Mobile CEO Mike Sievert said.
In addition, the company reports that its 5G network now covers 305 million people and 1.7 million miles. Moreover, T-Mobile reported that its network now carries about 80% of Sprint customer traffic and one-third of Sprint customers.
Sievert told analysts and investors that T-Mobile is strategizing how it should proceed with the migration. He said the migration includes multiple “discrete events”: moving the substantial portion of network traffic, migrating the core network, migrating rate plan, migrating the biller and lastly migrating the brand. Sievert said T-Mobile has begun to shut down the “source” (Sprint) network to the “destination” side (T-Mobile).
“We’re pleased with our progress. We’re ahead of schedule, but this next year is a really critical time,” Sievert said.
T-Mobile didn’t include numbers from its business unit but nevertheless reported “increased growth.” Sievert said he’s “delighted” with T-Mobile for Business’ results and declared that T-Mobile’s business net additions surpassed that of Verizon.
Mike Katz, executive vice president of T-Mobile for Business, said the company has set its sights on the postpaid core connection opportunity.
“If you look at all the opportunities in enterprise, core connectivity is still the biggest opportunity, both from numbers/subscribers but also for revenue, so we’ve been really focused on taking share there,” Katz said.
Irwin Lazar, president and principal analyst for Metrigy, said T-Mobile took a unique approach to distributed workforces during COVID-19. The carrier’s WFX portfolio includes an unlimited data plan, home office internet using a 4G/5G broadband connection, and a collaboration offering that utilizes Dialpad.
“T-Mobile seems to be the one company that’s attacked that remote work market,” Lazar said.
Omdia’s Daryl Schoolar made a similar comment earlier this year, praising WFX for its scalability and marketability.
“T-Mobile smartly recognizes that the pandemic will leave a lasting impact on how people work. 5G was designed to help operators better address enterprise needs,” Schoolar said.
T-Mobiles chief wireless competitors, Verizon and AT&T announced their earnings last week. Verizon and AT&T both saw growth in their business wireless businesses. Verizon’s business wireless service revenues increased 8.0% year-over-year to $3.1 billion, although that growth predominantly came from SMB customers (11.3% year-over-year revenue increase) while global enterprises dropped slightly. AT&T’s business mobility unity reported a net gain of 5.5 million wireless subscribers in the second quarter.
Verizon’s total business revenue increased 3.7% year-over-year to $7.8 billion, a number close to where it was in Q2 2019.
The wireline numbers did not paint as strong a growth picture. Verizon Business broadband connections dropped from 491,000 in Q2 2020 to 480,000 Q2 2021. In the meantime, consumer broadband connections increased. AT&T’s business wireline revenue dropped 4.0% year-over-year to $6.1 billion in Q2 2021 while – you guessed it – consumer wireline revenue increased.
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