Business News: T-Mobile Continues to grow with 102.1 Million Users.
T-Mobile US Inc. said its nearly one-year merger with Sprint Corp. will support the combined company with higher costs this year as its engineers will move more subscribers over a single network. Bellevue, Washington, company said it would spend $ 2.5 billion to $ 3 billion pre-tax to accommodate the stores, employees, and network infrastructure it has acquired. from his former competitor in the new company. The company spent about $ 1.9 billion on those expenses last year.
The additional cost pushed T-Mobile’s fourth-quarter net income to $ 750 million, or 60 cents per share, compared to a prior year’s earnings of $ 751 million, or 87 cents per share. The latest quarterly result included $ 686 million in merger costs. Revenues increased from $ 11.9 billion a year earlier to $ 20.3 billion a year earlier, before the company absorbed Sprint.
T-Mobile completed the takeover of small rival Sprint last year after a two-year legal campaign that culminated in a federal court ruling in its favor.
The merger left three major carriers in the US who spent the past year competing with each other and with a collection of smaller brands for new customers. T-Mobile recorded a net increase of 824,000 postpaid phone connections in the fourth quarter in January. Rival AT&T Inc. said it added 800,000 of those new customers. Verizon recorded a net increase of 279,000 postpaid phone connections.
T-Mobile also continued to add devices other than mobile phones, including tablets and internet hotspots, to its cellular network. The company recorded a net increase of 794,000 in those postpaid connections in the fourth quarter.
The carrier said Thursday it has made further progress in integrating Sprint’s customer base, with 25% of Sprint’s postpaid traffic already flowing through T-Mobile’s systems, representing approximately 4 million subscribers.
T-Mobile executives are counting on the multiple mid-wave wireless licenses obtained with the purchase of Sprint to fuel their company’s growth for years to come. Engineers have already used some of the precious spectrum to deploy ultra-fast fifth generation, or 5G, wireless services across much of the country.
Executives said the additional cost of bringing the two companies together under one roof would more than cover the future cost savings of a simpler organization. They also pointed to faster wireless downloads as a reason why the company’s revenues will continue to improve.