How Far Can T-Mobile US Push its Strategy?

It always has been clear that T-Mobile US could take market share if it was willing to sacrifice profit margins and average revenue per account. It has done so.

source: Business Insider

source: Jackdaw Research

As a stand-alone company, the T-Mobile US challenge is a race to gain new accounts, even at lower ARPU, as fast as possible, while containing churn. That way, total revenue can grow, even if ARPU is challenged.

The other variable is whether the lower-ARPU trend can be arrested. There is some evidence that is happening, though the industry backdrop is that ARPU is dropping for all carriers as the competitive environment remains challenging.

source: Strategy Analytics

The other important trend is that T-Mobile US total revenue per account, including both recurring services revenue and installment payments for devices, has been improving.

source: Techpinions

The issue now is how far the present strategy can go.

source: Strategy Analytics

What seems clear is that the T-Mobile US assault has devastated other U.S. mobile virtual network operator market share, whatever gains T-Mobile US has made at the expense of Verizon, AT&T or Sprint.