T-Mobile said on July 23 that it expects to see higher customer churn in the third quarter due to its ongoing push to migrate customers on legacy phone plans to newer plans utilizing its 5G and 5G Advanced networks.
The announcement, made during the wireless network operator’s conference call with industry analysts following the release of its second quarter financial results, sent T-Mobile’s shares sharply lower. The stock closed down nearly 15 percent.
T-Mobile ended the second quarter with more than 30 million monthly active users, but it expects temporarily elevated account churn in the third quarter, with postpaid account additions totaling approximately 250,000, well below analyst expectations of nearly 304,000 new accounts for the upcoming quarter. …