T-Mobile continued to demonstrate subscriber growth with total net additions of 1.9 million even as quarter-to-quarter growth slows, according to the carrier’s second quarter earnings call. The company also showed strong year-over-year percentage growth in key financial metrics.
At the same time, T-Mobile continued to improve its 4G LTE network in coverage and capacity to support customer growth in 2Q16 and beyond.
The key question is: Can the company keep it going?
Capital expenditures (capex) in the quarter reflected T-Mobile’s continued investment in the expansion of its 4G LTE network. 2Q16 capex was $1.3 billion, flat with $1.3 billion in 1Q16 and up 13 percent from $1.2 billion in 2Q15.
The company maintained guidance of 2016 cash capex of $4.5 to $4.8 billion. Through the first half of the year, T-Mobile spent 56 percent of the full-year budget. Based on current guidance, expect a slowdown in network investments through the end of 2016.
T-Mobile is relying on both owned and soon-to-be acquired spectrum to give it the high-speed, mobile data connection capacity it needs to grow.
At the end of 2Q16, T-Mobile already owned, or had agreements to own, an average of 86 MHz of spectrum across the top 25 markets in the U.S. The spectrum comprises an average of 12 MHz in the 700 MHz band, 30 MHz in the 1900 MHz PCS band, and 44 MHz in the AWS band.
T-Mobile currently provides 4G LTE to 311 million people nationwide, through a mix of legacy wideband LTE and new Extended Range LTE (ER-LTE) for both wide area coverage and in-
building performance. ER-LTE operates on the low-band 700 MHz A-Block spectrum, and covers more than 200 million people in 350 market areas.
John Celentano is a principal in Skyline Marketing Group, which provides technology marketing & sales strategy advisory in advanced communications services, and wireless, telecom, data networking infrastructure markets. The firm also develops client-specific print and digital marketing campaigns with customer-focused vectors (media articles, white papers, application notes, emails, advertising, webinars, trade show/conferences, web content, videos, SEO, blogs, public speaking, press releases). Additionally, support is provided for internal positions in market analysis, business development, strategic planning, strategic marketing, product management, product marketing, sales operations.
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