Question · Q4 2025
Jonathan Kees inquired about T-Mobile's elevated churn rates for postpaid and prepaid in Q4 2024 and 2025, despite rising NPS scores and differentiation. He also asked about the extent to which price increases, particularly on legacy plans, will drive service revenue growth.
Answer
CEO Michael Sievert explained that 2025 saw a normalization of churn rates across the industry after years of suppression by 36-month contracts, noting T-Mobile's 7 basis point increase was the lowest among the top three carriers for the full year. He stated T-Mobile will focus on account churn as a more meaningful metric. Regarding service revenue, he indicated ARPA growth will be driven by premium plan loading and expanding relationships, with occasional rate plan optimizations on legacy plans, as seen in January.
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