It’s been a long time coming. During today’s Q4 and 2014 earnings call, CEO John Legere claims that T-MobileUS has basically surpassed Sprint in subscriber base for the first time, becoming the third-largest carrier in the US. We though it would happen by the end of last year, but Sprint has tried hard to hold on to it customers (without so much as gaining any). Still, T-Mobile has finally caught up and reached a new milestone.
Surely we all knew it would happen. Between the new Uncarrier initiative, the acquisition of MetroPCS, and re-purposing of spectrum to meet 4G demands, T-Mobile US has been a force to reckon with these past two years. Meanwhile on the flip side, Sprint has remained fairly stagnant, and Legere claims they’ve remained largely at a standstill. “Going into 2013, Sprint had 55 million customers. Going into ’14, they had 55 million customers. Going into this year, they have 55 million customers…”. Legere even blatantly mentions the creative accounting involved in counting Sprints customers, which includes long-inactive users. T-Mobile has reached the 55 million mark, and when accounting for Sprints inactive MNVO users, has just barely taken the #3 spot. Legere says that this will be much more clear in the next quarter or two.
Meanwhile, the Magenta carrier has also posted a nice profit of $101 million, to contrast with the loss they accrued the same time last year. Many analysts have claimed that T-Mobile can’t afford to keep up how they’ve been operating without a merger, but it just might seem like they just might be able to make it work, at least for a while. Legere did talk a little about Dish Network and how he thinks the company is “a great opportunity for the country and possibly T-Mobile.” Many have looked to acquiring T-Mobile to no avail, but it seems like Dish might be a favorable option for a merger if they can potentially reach a deal with Deutsche Telekom AG.
In the meantime, T-Mobile will continue to ride on this victory on its own.