The cell phone industry in the United States and in other countries around the world has become increasingly competitive over recent years. With more and more people looking to take up smart phones and tablets, the big name network providers are battling it out for the biggest slice of the pie when it comes to customers. Rival carriers use a range of tactics to try and attract new customers and build their customer base such as creating low cost plans and offering various perks when an individual takes out a contract. However, it seems that no US network is doing it better than wireless provider T-Mobile, which recently reported impressive quarterly earnings.
According to reports, rising customer numbers have resulted in T-Mobile seeing profits soar. The company is the third largest wireless provider in the United States but appears to be running rings around its competitors with its surging profits and customer numbers. In the final quarter of last year, the company reported net earnings of $297 million – just twelve months earlier this figure stood at $101 million reflecting just how rapidly earnings have shot up for the provider.
Tempting new customers
Figures show that during the final quarter of last year, the company added an impressive 2.1 million customers to its base, which meant a net count of 63 million customers for the year. This was the eleventh quarter in a row where the company has added in excess of one million new customers and the third quarter in a row where it has managed to add more than two million new customers. The growth that T-Mobile is experiencing is hugely impressive compared to its rivals and officials believe that part of this success is in its ability to attract new customers through tempting deals and packages.
In this highly competitive sector, most wireless providers have realized the importance of being able to offer excellent value for money to customers in order to increase the customer base, which in turn means an increase in profits. T-Mobile seems to have nailed it when it comes to doing this efficiently and successfully, hence the rise in profits and customer numbers over the past year. In comparison, one of the top names in the industry, Verizon, only managed to add one million customers in the final quarter of 2015 although AT&T managed to come neck and neck with T-Mobile with 2.1 million new customers for the quarter. However, the AT&T figures were heavily reliant on car and tablet sales whereas T-Mobile’s figures were mostly in relation to cell phones.
According to experts, T-Mobile has put together a very effective marketing strategy and part of this has been to offer a choice of low cost plans to customers in a bid to lure them away from their existing providers. With people keen to save money on their outgoings, this is a process that has not proven too difficult and customers have been flocking to ditch their old providers and sign up to a more cost effective plan with T-Mobile.