T-Mobile's CFO Wishes Subscriber Churn Were Higher

T-Mobile (NASDAQ: TMUS) saw its postpaid phone subscriber churn climb two basis points in the fourth quarter. That marks the first time T-Mobile saw its subscriber churn climb since the first quarter of 2016. And CFO Braxton Carter says he wishes churn was higher.

"The hallmark of this quarter was a more competitive environment with more switching going on," Carter said at an investors' conference. "And when you have the higher switching pool, i.e. churn's going up across the board, it is much more cost effective for us to grow and scale this business."

In other words, T-Mobile fully expects to lead the industry in postpaid phone churn, but if churn was higher across all of its competitors, it would have a greater opportunity to win more gross subscriber additions. That would ultimately lead to greater overall net additions than in a low-churn environment.

Continue reading

Source Fool.com