• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechInvestors Guide

How T-Mobile’s Customer Focus Beat Rivals Yet Again

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
October 24, 2016, 11:03 AM ET
Inside A T-Mobile US Inc. Store Ahead Of Earnings Figures
An employee reacts as a shopper tests an Oculus Rift virtual reality (VR) headset at a T-Mobile US Inc. store in Chicago, Illinois, U.S., on Friday, Oct. 21, 2016. T-Mobile US Inc. is scheduled to release earnings figures on October 24. Photographer: Daniel Acker/Bloomberg via Getty ImagesDaniel Acker — Bloomberg via Getty Images

Over the last year, the wireless industry has seen Verizon buying up popular—if faded—Internet properties, AT&T making huge bets on video, and Sprint engaging in some of the savviest financial engineering moves ever seen just to manage its heavy debt load.

But what of T-Mobile? Under outspoken CEO John Legere, the third largest carrier hasn’t bought any cable, satellite, Internet, or smoke signal-based media companies. Instead, following Legere’s “Uncarrier” strategy, T-Mobile (TMUS) has simply focused on giving wireless customers more of what they want. That’s meant lower prices and features like free roaming and music streaming that doesn’t count against data caps.

As confirmed yet again in T-Mobile’s third quarter results released on Monday, the focus on customers is paying off. T-Mobile added 857,000 postpaid or regular monthly phone customers in the quarter, more than its three rivals combined. And it also added 684,000 of the less lucrative prepaid phone customers, again more than all three rivals combined for that category.

Sadly for Verizon, AT&T, and Sprint, the quarter was hardly an anomaly. As Legere crowed on Twitter (TWTR), his preferred means of communication, “ONLY @TMobile has taken share for 14 quarters in a row. #sorrynotsorry”

This quarter, T-Mobile benefitted specifically from a new, cheaper unlimited data plan that only Sprint (S) matched. Verizon (VZ) says it won’t go back to unlimited plans, while AT&T (T) offers a more expensive unlimited plan only to its DirecTV customers.

The arrival of the iPhone 7 (AAPL) late in the quarter also helped. T-Mobile was first to offer a free new iPhone via trade-in of an older model. Though all three other carriers matched the offer within days, analysts say T-Mobile’s strong brand benefits most when new iPhones deals get customers thinking about switching carriers.

Get Data Sheet, Fortune’s technology newsletter.

The big knock on T-Mobile’s aggressive efforts to woo customers has been that it wouldn’t be able to afford offering deals forever. But again the third quarter results showed otherwise. While other carriers showed little or no rise in wireless revenue, T-Mobile posted an 18% jump to $9.2 billion, more than analysts had expected. Adjusted earnings before interest, taxes, depreciation, and amortization also increased more than analysts expected. Shares of T-Mobile gained 7% on Monday.

Meanwhile, AT&T shares slumped 2% as investors fretted about its massive $109 billion proposed acquisition of Time Warner (TWX). Wall Street had mixed views on whether the deal would truly help AT&T, with particular concerns focused on regulatory and financial questions.

Verizon, which has made much more modest acquisitions, also appears to be addressing wireless weakness by turning its focus elsewhere. Buying AOL and Yahoo (YHOO) will add digital advertising revenue while a few smaller deals will help Verizon sell more smart, connected devices, such as car trackers.

Only Sprint has joined T-Mobile in adding at least some postpaid phone customers in recent quarters. CEO Marcelo Claure appears to have the carrier on the comeback after many years of flailing.

Legere continued to tweak his rivals on Twitter, but if there’s a lesson in the CEO’s hijinks, it may be a simple one: Focusing on what customers want tends to attract more customers.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

A man in a suit and tie
InvestingMeta
Meta just bumped its 2026 capex forecast up to as much as $145 billion for the AI boom—and investors flinched
By Amanda GerutApril 29, 2026
37 minutes ago
How JPMorgan’s CIO is reshaping work at the bank with a $19.8 billion annual tech and AI budget
NewslettersCIO Intelligence
How JPMorgan’s CIO is reshaping work at the bank with a $19.8 billion annual tech and AI budget
By John KellApril 29, 2026
6 hours ago
hollywood
CommentaryMarketing
I spent 20 years learning to navigate an industry. Then I built a campaign for the man who’s dismantling it
By Matti YahavApril 29, 2026
11 hours ago
Current price of Ethereum for April 29, 2026
Personal FinanceEthereum
Current price of Ethereum for April 29, 2026
By Joseph HostetlerApril 29, 2026
11 hours ago
An excavator works to clear rubble after the East Wing of the White House was demolished on October 23, 2025 in Washington, DC. The demolition is part of U.S. President Donald Trump's plan to build a multimillion-dollar ballroom on the eastern side of the White House.
PoliticsWhite House
Meet all 37 White House ballroom donors funding the $400 million build, including Silicon Valley tech giants, crypto bros and the Lutnicks
By Nino Paoli and Fortune EditorsApril 29, 2026
12 hours ago
gen z
Commentarydisruption
AI won’t kill your job — it will kill the path to your first one
By Jeffrey Sonnenfeld, Stephen Henriques, Johan Griesel, Andrew Alam-Nist and Peter YuApril 29, 2026
12 hours ago

Most Popular

Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
2 days ago
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
AI
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
By Sasha RogelbergApril 28, 2026
2 days ago
‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
Energy
‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
By Shawn TullyApril 29, 2026
17 hours ago
Current price of gold as of April 28, 2026
Personal Finance
Current price of gold as of April 28, 2026
By Danny BakstApril 28, 2026
1 day ago
Jamie Dimon gets candid about national debt: ‘There will be a bond crisis, and then we’ll have to deal with it’
Economy
Jamie Dimon gets candid about national debt: ‘There will be a bond crisis, and then we’ll have to deal with it’
By Eleanor PringleApril 29, 2026
13 hours ago
More than two-thirds of U.S. schools say they’re unable to afford the cost of student free lunch—and MAHA’s dietary guidelines may make it worse
Economy
More than two-thirds of U.S. schools say they’re unable to afford the cost of student free lunch—and MAHA’s dietary guidelines may make it worse
By Sasha RogelbergApril 29, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.