Back to top

Analyst Blog

T-Mobile US, Inc. (TMUS - Snapshot Report) continues to implement some ground- breaking strategies by continuously launching innovative plans for its subscribers. Recently, the company will be rolling out a new Jump plan, which will allow the subscribers to upgrade their handset twice a year rather than waiting for two years, as in the case of other carriers.

T-Mobile US will be charging $10 a month for this new service which also offers insurance coverage on the new phone. Hence, the smartphone will be protected against theft or any kind of damage. The customer can avail the first upgrade service after six months, after which there will be no waiting period.

A few months back, T-Mobile US launched another contract-less service called Uncarrier. This plan allows subscribers to buy smartphones like Apple Inc.’s (AAPL - Analyst Report) iPhone at $100 and pay the balance in installments of $20 per month for the next two years.

The new plan has gained huge popularity and helped the company to improve its subscriber base. After a gap of three years, the company recently added a substantial number of contract customers.

Moreover, the company’s recent merger with MetroPCS Communications, Inc. has also solved its longstanding spectrum shortage crisis, thereby helping T-Mobile US to deploy 4GLTE service across 100 markets.  

T-Mobile US also started a family plan where it allows family members of any T-Mobile subscriber to join T-Mobile plans without any sort of credit verification.

In the last four years, T-Mobile US went through some difficult phases. Unsuccessful merger attempt with AT&T, Inc. (T - Analyst Report) coupled with the unavailability of iPhones in its smartphone portfolio had led to a continuous loss of subscribers.

So, to turn things around, T-Mobile US is implementing such strategies. The company has already tasted success by gaining 3,000 subscribers in the first quarter of 2013 as compared with a loss of 261,000 subscribers in the prior-year quarter.

Therefore, we believe that such strategies undertaken by T-Mobile US will not only help it to safeguard its position against top carriers like AT&T and Verizon Communication Inc. (VZ - Analyst Report) but will also allow it to take unprecedented lead over its rivals.

T-Mobile US currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.