T-Mobile CEO Mike Sievert attributes company’s success to affordable options and no price hikes.

The CEO of T-Mobile, Mike Sievert, recently spoke about the company’s record-breaking performance in the second quarter of the year. Despite other companies facing cautionary signals in the market, T-Mobile has seen a significant increase in new accounts and overall growth.

Record Growth

In the first and second quarters of the year, T-Mobile saw the biggest growth in its history. Sievert stated that in the second quarter alone, the company delivered 380,000 new accounts – the highest number ever recorded. He attributes this success to T-Mobile’s strategy of being the “un-carrier,” offering consumers more affordable options and not raising prices like its competitors.

Competitor’s Price Increases

T-Mobile’s competitors, AT&T and Verizon, have raised prices citing inflation as the reason. Sievert, however, believes that this is just an excuse and that T-Mobile’s strategy of being the un-carrier has allowed them to avoid increasing prices. The company has also introduced a “price lock” feature, ensuring that prices will not be raised in the future.

Cost Pressures

Sievert acknowledged that T-Mobile also faces cost pressures, such as rising labor costs and equipment expenses. However, the company has long-term contracts and arrangements in place that lock in pre-inflationary prices, giving them some insulation against these pressures.

Bad Debt

When asked about customers not paying their bills on time, Sievert stated that it is a normal occurrence for the company and that they work with customers to recover the debt. He also mentioned that T-Mobile reported elevated bad debt levels to pre-pandemic levels but that they are comfortable managing it and have guided EBITDA up in the same report.

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Churn

Sievert also touched on the topic of customer churn, stating that T-Mobile’s position as a pure-play mobile internet company in an era where internet usage is becoming increasingly mobile is a significant advantage. The company’s record growth and success in managing customer relationships are evidence of this.

conclusion

T-Mobile’s strategy of being the “un-carrier” and offering affordable options to consumers, along with its long-term contracts and cost management, has allowed the company to see record growth and success in the second quarter. Despite facing similar cost pressures as its competitors, T-Mobile has not raised prices and continues to provide value to its customers.

What was the reason for T-Mobile's record growth in Q2?

T-Mobile's strategy of being the "un-carrier" and offering more affordable options to consumers was the reason for the company's record growth in the second quarter.

How many new accounts did T-Mobile gain in Q2?

T-Mobile gained 380,000 new accounts in the second quarter - the highest number ever recorded.

Why have T-Mobile's competitors, AT&T and Verizon, raised prices?

T-Mobile's competitors, AT&T and Verizon, have raised prices citing inflation as the reason.

Has T-Mobile raised prices?

T-Mobile has not raised prices and has even introduced a "price lock" feature, ensuring that prices will not be raised in the future.

What are the cost pressures T-Mobile is facing?

T-Mobile is facing cost pressures such as rising labor costs and equipment expenses.

How does T-Mobile handle customers not paying their bills on time?

T-Mobile works with customers to recover the debt and has reported elevated bad debt levels to pre-pandemic levels but is comfortable managing it.

What is T-Mobile's strategy for managing customer churn?

T-Mobile's position as a pure-play mobile internet company in an era where internet usage is becoming increasingly mobile is a significant advantage for managing customer churn, and the company's record growth and success in managing customer relationships are evidence of this.

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