whole "un-carrier" strategy seems to be resonating with wireless subscribers, both new and old. In regards to the former, T-Mobile reported 2.4 million total net customer additions, including over 1.3 million branded postpaid net customer additions during the first quarter of 2014 -- that's more than AT&T
combined. It's also the first quarter in T-Mobile's history with more than 2 million net additions.
This is the fourth consecutive quarter with over 1 million total net additions, and according to T-Mobile, that qualifies it as the fastest growing wireless company. T-Mobile credits its recent success to its aggressive un-carrier strategy, which involves "eliminating consumer pain points" like long-term contracts and subsequent early termination fees. It's been a different way of doing business in what T-Mobile chief John Legere described as an "arrogant" industry.
"A year ago I promised that we would bring change to what I called this arrogant US wireless industry. We are delivering on that promise and our results reflect the growing customer revolution that we’ve ignited," said John Legere, President and CEO of T-Mobile. "We are now approaching 50 million customers, added 2.4 million net new customers in the first quarter alone, and posted our fourth quarter of consecutive service revenue growth, while once again adding more net new postpaid customers than the rest of the industry combined!"
T-Mobile's revenues for the first quarter grew 47 percent year-over-year to $6.88 billion. This was helped in part by a record number of smartphone sales -- T-Mobile sold 6.9 million smartphone devices during the quarter. However, T-Mobile's operating expenses totaled $6.9 billion. Along with other expenses, T-Mobile posted a $151 million loss for the quarter, or 19 cents per share, compared with a $107 million profit, or 20 cents per share, in the same quarter a year ago.