T-Mobile (TMUS) Registers Record Customer Growth in 2022
T-Mobile US, Inc. TMUS recently unveiled the preliminary results for the fourth quarter and full-year 2022 related to key customer data. The company witnessed a record customer increase in 2022, driven by 5G network strength and a differentiated growth strategy. The company expects this growth momentum to continue in 2023 and beyond on its diligent execution of operational plans.
T-Mobile registered 314,000 postpaid net account additions in the fourth quarter, bringing the tally for 2022 to a record-high figure of 1.4 million. Postpaid net customer additions were 1.8 million in the fourth quarter and an all-time high of 6.4 million in 2022. Postpaid phone net customer additions were 927,000 in the fourth quarter, with a year-over-year improvement in phone churn of 18 basis points (bps) to 0.92% and 3.1 million for 2022 with a 10 bps growth in phone churn to 0.88%.
On the other hand, prepaid net customer additions were 25,000 in the fourth quarter and 338,000 for the full year. Prepaid churn was 2.93% in the fourth quarter and 2.77% in 2022 – the lowest in the company's history. High-speed Internet net customer additions were 524,000 in the quarter and 2 million for 2022. T-Mobile ended the year with 2.6 million high-speed Internet customers, strengthening its credentials as the nation’s fastest-growing home broadband provider.
Total net customer additions were 1.8 million in the fourth quarter, bringing the tally to a record 6.8 million for 2022. Total customer count at the end of 2022 increased to a record high of 113.6 million as it extended its coverage across the length and breadth of the country.
Following its merger with Sprint, T-Mobile boasts an unrivaled bouquet of high- and low-band spectrum for a faster nationwide 5G rollout, undeniably disrupting the competitive landscape of the U.S. telecom market. To its credit, T-Mobile reportedly has the largest nationwide 5G network, with its Extended Range 5G covering more than 320 million people. The company is further strengthening its mid-band coverage by adding more towers and spectrum in places that already have 5G network connectivity.
T-Mobile continues to deploy 5G with the mid-band 2.5 GHz spectrum from Sprint. It is likely to provide average 5G speeds of above 100 Mbps to 90% of the population. T-Mobile’s business plan is built on covering 90% of rural America with average 5G speeds of 50 Mbps, up to two times faster than broadband. It plans to continue lighting up this 5G spectrum at an aggressive pace. T-Mobile’s 2.5 GHz 5G delivers superfast speeds and extensive coverage with signals that go through walls and trees, unlike 5G networks that are controlled by the mmWave spectrum.
Shares of the company have gained 21.1% in the past year against the industry’s decline of 13.1%.
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T-Mobile currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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