T-Mobile had a strong fourth quarter, outperforming analysts’ expectations by adding 934,000 net postpaid phone customers and 541,000 fixed wireless access (FWA) customers. Despite the positive figures, there’s a suggestion that T-Mobile may follow its competitors in considering price hikes for some service plans.
During the company’s quarterly conference call, T-Mobile CEO Mike Sievert highlighted the current era of “unprecedented value.” He emphasized that customers are receiving three times more data than five years ago, coupled with faster speeds. Sievert mentioned that T-Mobile would seek “optimizations” that align with the company’s goals and are acceptable to customers.
T-Mobile has already tested the waters with price increases, confirming reports of a $10 hike in the FWA service, now priced at $60 per month. The company clarified that the earlier price was a “promotional” rate, and the new one reflects “standard” pricing. Despite potential adjustments, Sievert assured that T-Mobile has no intentions of compromising its brand position, known for providing the best value in the industry.
The momentum in T-Mobile’s FWA segment is evident, with almost 5 million customers reported at the end of 2023. The company aims to further increase this figure to between 7 million and 8 million by the end of 2025. The impact of FWA success extends to competitors like Comcast, which reported a loss of 34,000 broadband customers in the fourth quarter.
While acknowledging challenges, T-Mobile’s growth has proven more resilient than anticipated, according to financial analysts at New Street Research. The company continues to refine its FWA business, recently adjusting its terms of service to notify customers of potential slower speeds after consuming 1.2TB of data per month.
During the quarterly call, T-Mobile executives addressed various issues, including testing direct-to-cell services from SpaceX, exploring space-based text messaging services in 2024, and providing insights into the pending acquisition of MVNO Mint Mobile. Sievert expressed the company’s openness to investments and mergers but clarified that there’s currently no significant deal on the horizon.
