T-Mobile's Customer Retention Doesn't Have Much Room to Improve

T-Mobile (NASDAQ: TMUS) posted yet another quarter of industry-leading subscriber net additions. Its 754,000 new postpaid phone subscribers from the prior quarter was more than double Verizon (NYSE: VZ) (239,000) and AT&T (NYSE: T) (101,000) combined.

A key part of that net subscriber growth was T-Mobile's ability to hold onto more customers. Postpaid phone churn came in at a third-quarter record 0.89%. That's better than AT&T (0.95%) and closing in on Verizon (0.79%).

"We have to be aware [that] we are arriving at industry best," President and COO Mike Sievert said when asked about further room for improvement in subscriber retention. As T-Mobile pushes up against the limitations of subscriber retention, the number of net subscriber additions could go down if T-Mobile can't improve its gross additions analyst Walter Piecyk suggested during the company's third-quarter earnings call. That's the challenge Verizon and AT&T face right now.

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Source Fool.com