-T-Mobile misses quarterly revenue estimates as competition bites
(Updates shares)
Feb 1 (Reuters) - T-Mobile US Inc missed fourth-quarter revenue estimates on Wednesday despite adding thousands of wireless subscribers, as competitors ramped up their holiday season handset offers to lure customers.
The U.S. wireless carrier has been adding thousands of wireless subscribers lately, thanks to discounts on smartphones, bundled offerings, industry-low plan prices and an edge in 5G, owing to its $23 billion buyout of Sprint Corp. in 2020.
However, Verizon and AT&T ramped up their handset offers during the holiday season to tap into growing demand after the latest iPhone launch, hitting T-Mobile's torrid growth. The carrier added 927,000 postpaid phone subscribers in the fourth quarter, the highest among its peers.
But its churn rate, which refers to the percentage of customers who stopped using the company's services, was also the highest compared to rivals, at 0.92%. By contrast, Verizon reported churn of 0.89% for monthly phone subscribers while AT&T's came in at 0.84%.
Moreover, industry executives have hinted at a cool-down in growth as demand for phones with video-conferencing and premium plans that supported remote work fades as offices reopen.
