Rural market share, enterprise, home broadband among T-Mobile US growth drivers

T-Mobile US CEO Mike Sievert sees a number of tailwinds the carrier can leverage to continue gaining market share as the company’s value proposition expands from a value-focused perception to now include 5G network leadership. 

Speaking last week at the Goldman Sachs Communacopia + Technology Conference, Sievert described a “fantastically successful journey” that has seen T-Mo decommission the Sprint network ahead of schedule while delivering “consistent, reliable growth that’s profitable and accretive.” He said the company’s network and go-to-market strategy is based on a team that develops “careful…thoughtful business plans into the marketplace then delivers on them.” 

In terms of continued growth opportunities, Sievert laid out five vectors: rural and smaller market penetration, enterprise connectivity, home broadband, churn and switchers in the top 100 markets who are looking for the best network experience. 

  1. “In vast swaths of this country, in rural and smaller markets,” Sievert said, “our market share is in the teens. Executing our small markets and rural areas strategy is a huge tailwind for the business.” 
  2. On the enterprise side, Sievert said T-Mobile has market share in the low double digits. “The 5G lead that we were able to create for ourselves has changed the relationship we have with enterprises significantly.” 
  3. With a robust spectrum portfolio and significant excess network capacity, T-Mobile has begun selling cellular-based home broadband services. “We did it after a studied effort to understand how our excess capacity would open up opportunities,” he said. “Our product will serve [customers] needs for years to come.’ 
  4. He characterized the goal for T-Mobile as being the lowest churning business in its segment and noted that while competitors were previously feed on elevated Sprint churn, that’s not the case anymore. 
  5. In the top 100 markets, “Tens of millions of people never gave us a serious look on that run to number one…What they care about most is the network and back then we didn’t have it…We’re not defending a castle in the markets where we’re number one. We’re interested in extending it.” 

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