T-Mobile Shifting Focus to Growing ARPU: LightShed
T-Mobile’s new premium plan, Go5G Next, which costs $100 per month for a single line (see 2308210042), appears to show a pivot by T-Mobile to focus more on growing average revenue per user, LightShed’s Walter Piecyk told investors. “It’s doubtful…
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that T-Mobile’s new plan will move the needle on gross adds or upgrades,” he said. “This is not a major move by T-Mobile, but it underscores a pivot to ARPU growth already underway,” he said. Focus on ARPU is a "logical next step” for the carrier, Piecyk said: “Net subscriber additions may be great for confetti cannon press releases, but it’s getting harder for T-Mobile to distract investor attention from its pedestrian wireless service revenue growth, especially since it has been trailing AT&T’s growth.”