T-Mobile US CEO John Legere, talking with analysts this morning after a strong quarterly earnings report, said the company is preparing to launch the third wave of its “Un-Carrier” strategy and predicted that it will put the industry’s larger players further back on their heels.
“I’ve made it clear, we’re not done,” he said. “Un-Carrier 3.0 is already scheduled, and you can trust it’s going to do two things. It’s going to solve another customer pain point and it’s going to unveil another weakness of the major players, with an inability for them to respond.”
In the earlier phases of its plan, T-Mobile this year stopped offering traditional phone subsidies to consumers and unbundled the cost of the phone from the wireless plan — lowering the cost of the wireless service and reducing the overall bill after the phone is paid in full. The company also introduced a $10/month subscription program called JUMP that lets customers upgrade to new phones more frequently without penalty.
T-Mobile’s results overnight showed a positive response from customers. The company added a net total of 1.1 million customers in the second quarter, including 678,000 for its T-Mobile and MetroPCS brands. That was the strongest growth in branded customers four years for the company.
On the call, Legere said the momentum was “not a one-time blip,” noting that more AT&T and Verizon customers become eligible to switch without penalty each month as their contracts expire.
T-Mobile shares are up nearly 4 percent on the earnings report. CNet News executive editor Roger Cheng has an extensive profile of Legere and his impact on the company’s culture, calling the T-Mobile CEO “the most dangerous man in wireless.”