The Sunday Brief

Connecting technology, telecommunications, and the internet

Understanding T-Mobile’s Earnings

Seven percent branded prepaid monthly churn. That’s an eye-popping figure. As many of you who come from the prepaid wireless (or even stand-alone long distance) industry know, there is a point where customers are mistakenly mislabeled – they should be called “visitors.” They have reached that point for T-Mobile in the branded prepaid space. 80%+ annualized churn for the last half of 2012 is abysmal, regardless of the reasons T-Mobile cited (older base, higher competition). This is not only Un-Carrier, this is Un-Sustainable and will soon be Un-Profitable.

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