During a quarter that saw all four national mobile carriers increase the number of postpaid subscribers [descrption], Sprint and T-Mobile grew faster than the two market leaders, AT&T and Verizon, reported the WSJ.”
Growth in subscribers was accompanied by higher than expected increases in capital spending by both companies.
The company added 87,000 net postpaid phone subscribers in the quarter that ended at the end of June. Those customers pay bills monthly under longer-term contracts and are considered the most profitable by wireless carriers because they provide more predictable revenue.
The subscriber growth came during a period in which promotions were quiet in the industry and as Sprint and rival T-Mobile met with policy makers in Washington to make the case for their proposed US$26 billion merger.
Sprint chairman Marcelo Claure is leading the company’s efforts to tout the benefits of the merger. Critics of the transaction have said it could dampen competition by reducing the number of large US wireless carriers from four to three.
“The combined company will put America first and force the competition to invest,” Sprint’s new CEO Michel Combes told analysts on Wednesday morning.
Full Content: The Wall Street Journal
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