The latest talk of the tinsel town is can Netflix, Inc. (NASDAQ:NFLX) incidentally save T-Mobile US Inc (NYSE:TMUS) from accruing losses? Last Wednesday, the CEO of TMUS telecom carrier revealed that all and sundry who purchase Samsung phones from TMUS would get a year-long subscription to NFLX absolutely free of cost. However, the company is yet to come out with the nitty gritty of this offer.
TMUS Competing With Large Carriers
In Q4 2014, TMUS added humongous number (2.1 million) of new subscribers to its list. It has around 55.9 million connections on its pan-US network. In the realm of adding subscribers it is on the same foothold as its competitors – Verizon Communications Inc. (NYSE:VZ) who added approximately 2.1 million subscribers and AT&T Inc. (NYSE:T) who fell short in this race and added only 1.9 million subscribers. Sprint Corp. (NYSE:S) fell back by quite a few notches; it added only 1 million new subscribers in its Q4 2014.
How Long Would TMUS’ Incentive Policy Work?
In February, TMUS had offered trade-in package to a plethora of business owners and thus got a wide number of subscribers. However, off late the company is desperate enough and hence going forward with promotional spending to add to its consumer base. The question that lingers is how long can TMUS cut down its profits and offer incentives to attract new subscribers.
Pay Less For Poor Quality Service?
Though the company is enticing all and sundry with its offerings, people are shying away and are not switching to Mobile US Inc (NYSE:TMUS). This is largely because the quality of service is indeed among the poorest lot in comparison to the largest carriers.
Though TMUS topped Sprint in quite a few categories, however a recent RootMetrics report reveals TMUS’ flaws and improprieties that need to be addressed. Paying less and obtaining some low quality service may not be a solution altogether that people would love to enjoy.
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