Shares of T-Mobile surged nearly 6.5% to almost
Iliad reportedly offered
The deal arrives as T-Mobile's disruptive "Un-Carrier" strategy seems to be working, based on reported quarterly results. T-Mobile added 1.5 million new customers during the second quarter and passed the 50-million-customer milestone.
The company also said on Thursday that it has added 7.6 million new net customers overall during the past 15 months and now expects branded postpaid net additions for 2014 to be between 3 million and 3.5 million. The prior guidance was 2.8 million to 3.3 million.
T-Mobile reported quarterly profits of
"We have completely reversed T-Mobile's trajectory and started a revolution that is changing the rules in wireless," T-Mobile CEO
Among its Un-Carrier initiatives since 2013, T-Mobile has eliminated onerous wireless contracts, agreed to reimburse early-termination fees for customers who switch to T-Mobile and announced that folks could test-drive an iPhone 5s for a week.
Another opportunity presumably comes in the fall when Apple is expected to launch an iPhone 6. People often consider switching carriers when new devices hit the market. For now, T-Mobile's iPhone penetration is lower than rival carriers', and Legere in a conference call with analysts cited a report that T-Mobile's own customers are less likely to bail for another wireless provider compared with its competitors.
Not everything has gone swimmingly of late. T-Mobile was recently sued by the
That would-be merger would seem to be in flux with the Iliad offer. Legere wouldn't specifically comment on the rumored Sprint deal or any other -- he spoke to USA TODAY before news of the Iliad proposal hit -- but said T-Mobile "is not in need of doing something to be successful in the short- to medium-term."
Still, he hinted a potential transition could accelerate the scale game required to compete over the long haul against AT&T and
Legere told USA TODAY the latest Un-Carrier moves would come later in the summer. He didn't offer specific clues on what those moves would be but said that "you can trust that they'll be bigger and better than ever."
Legere also acknowledged that there are still areas to be covered. But T-Mobile has been expanding and modernizing its network and now provides 4G LTE coverage to more than 233 million people in 325 metro areas.
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