T-Mobile Grows, Stock Down Amid Possible Challenges From Rivals

T-Mobile had industry-leading postpaid net phone adds of 1.6 million in Q4, with 5.5 million in all of 2020, said a Thursday release. The carrier projected it will have to spend as much as $3 billion before taxes combining its stores, employees and infrastructure with those of Sprint, which it acquired last year. Integration costs were about $1.9 billion last year. Some 25 percent of Sprint postpaid customer traffic has been moved to the T-Mobile network. Year-over-year income was flat at $750 million on revenue of $20.3 billion. T-Mobile’s Ultra Capacity 5G now covers 106 million people, is projected to cover 200 million people nationwide by year-end. “If we play our cards right, T-Mobile is positioned to stay ahead in the 5G race for years to come,” said CEO Mike Sievert in a call with analysts. Officials said addressing Sprint’s high churn rate will take some time. “T-Mobile has a powerful advantage, and they mean to use it,” New Street’s Jonathan Chaplin told investors: “The only challenge we see is that, if AT&T continues to give away free iPhones to retain customers (and Verizon gets more aggressive) they may dampen switching.” T-Mobile stock closed down 4.1% Friday to $125.28.