T-Mobile Uses Aggressive Pricing, Free Roaming to Overtake Sprint
NEWS ANALYSIS: Feisty T-Mobile uses pricing, features and service to pass Sprint as the nation's number No. 3 wireless carrier, while turning its attentions to business customers.T-Mobile has finally achieved the third-place status that CEO John Legere promised would happen in 2015. The quarterly performance numbers issued by both companies showed that T-Mobile had about 1 million more subscribers in the second quarter of 2015 than the previous No. 3company, Sprint. This means that Sprint now drops to fourth place among national wireless carriers. T-Mobile has 58.9 million customers, versus Sprint's 57.7 million customers. In addition, T-Mobile results show the company growing at a faster rate than Sprint, despite Sprint’s recent turnaround in network performance. But can T-Mobile keep it up? T-Mobile reached the third-place ranking through a combination of lower prices than its competition, more aggressive marketing and a series of service features that made the carrier more attractive to potential users than the other companies. Those attractive features include allowing music streaming that does not count against data caps, free roaming throughout North America, free data roaming nearly worldwide, and subsidizing the costs of customers from other companies that want to switch to T-Mobile.
But Sprint has taken a "me too" approach to most of T-Mobile's efforts, offering its own subsidies for switching and providing similar incentives in terms of roaming charges. What Sprint hasn't had and still doesn't have is a high-speed data network to challenge T-Mobile.