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    Home » T-Mobile subscriber growth falls short
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    T-Mobile-Q1-2025-Subscriber-Growth
    Company Stories

    T-Mobile subscriber growth falls short

    By Kayla ZhangApril 25, 2025No Comments3 Mins Read
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    • Q1 2025 postpaid additions miss estimates amid intensified U.S. telecom competition.
    • T-Mobile unveils satellite-to-cell service and new prepaid plans to bolster market position.

    What happened: Slower subscriber growth amidst intensifying market competition

    In the first quarter of 2025, T-Mobile US Inc. reported the addition of 495,000 postpaid phone subscribers, falling short of the 506,400 additions anticipated by analysts, as per FactSet data. This shortfall highlights the escalating competition within the saturated U.S. wireless market, where operators are increasingly leveraging aggressive promotions and bundled offerings to attract and retain customers.

    Despite outperforming competitors AT&T and Verizon in subscriber gains—AT&T added fewer subscribers, while Verizon experienced a decline—T-Mobile’s shares declined by over 5% in after-hours trading. To counteract market pressures, T-Mobile introduced four new prepaid plans featuring a five-year price guarantee and monthly charges starting at $25 per line. Additionally, the company announced plans to launch a satellite-to-cell service in July, powered by SpaceX’s Starlink, priced at $10 per month for at least one year.

    CEO Mike Sievert indicated that current U.S. tariffs have not materially impacted the business. However, he cautioned that potential increases in handset prices due to tariffs could lead to a slowdown in device upgrade rates. Financially, T-Mobile raised its 2025 adjusted EBITDA forecast to a range of $33.2 billion to $33.7 billion, up from the previous estimate of $33.1 billion to $33.6 billion. The company’s revenue for the quarter rose by 6.6% year-over-year to $20.89 billion, surpassing expectations of $20.62 billion.

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    Why it is important

    The reported figures are significant as they reflect the challenges T-Mobile faces in maintaining subscriber growth within a highly competitive and saturated U.S. wireless market. The shortfall in expected postpaid additions indicates that aggressive promotions and bundled offerings by competitors are impacting T-Mobile’s ability to attract new customers.

    The introduction of new prepaid plans and the upcoming satellite-to-cell service represent strategic efforts by T-Mobile to diversify its offerings and appeal to a broader customer base. These initiatives could potentially offset the slowdown in traditional subscriber growth by tapping into underserved markets or offering enhanced services.

    Financially, the increase in the adjusted EBITDA forecast and the rise in quarterly revenue suggest that, despite the challenges in subscriber growth, T-Mobile is managing to improve its financial performance. This could be attributed to cost management, increased efficiency, or revenue from new services.

    satellite-to-cell service Subscriber Growth T-Mobile Telecom Market
    Kayla Zhang

    Kayla is a community engagement specialist at BTW Media, having studied English language studies at University of Malaya. Contact her at K.Zhang@btw.media.

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