T-Mobile Raises the Competition with iPhone 5


Image from: T-Mobile iPhone 5 / Ubergizmo

Now that T-Mobile has the iPhone, we believe that in the months to come, 191,000 competitive customers from AT&T, Sprint & Verizon will be more inclined to consider the carrier while visiting T-Mobile.com. Here’s why:

On Friday, April 12th T-Mobile became the last of the Big-Four carriers to offer the iPhone 5. But given that T-Mobile is late to the iPhone game, are consumers actually more likely to consider T-Mobile as a result of this?  We think so.

Compete has found that each month over half-a-million current AT&T, Verizon & Sprint customers visit T-Mobile’s website, and when polled in a recent Compete survey, 1 in 3 competitive customers indicated that they are more likely to consider T-Mobile as a result of iPhone availability.  Combining average traffic to T-Mobile.com over the past 12 months with these survey results, we believe that AT&T, Sprint & Verizon can expect that 191,000 of their current customers will visit T-Mobile’s site with increased purchase propensity in the months to come.
tmobile iphone 5 survey
T-Mobile is clearly targeting customers from direct competitors with its current marketing (see CNET reports). On Wednesday, April 10th T-Mobile gave competitive customers even more reason to switch by announcing discounts for people trading in their older iPhones, regardless of the carrier. T-Mobile also announced their new “Un-Carrier” plan, which provides no-contract pricing for smartphones with unlimited 4G data, and promises to save customers over $800/year compared to its competition. Competitors like AT&T and Virgin Mobile seem to be taking notice, with campaigns of their own that directly target T-Mobile.

After a difficult 2012, T-Mobile is off to a great start in 2013. The carrier recently reported Q1 growth in their branded customer base, along with a churn rate of just 1.9% – the best for T-Mobile in four years. Since these were Q1 results, prior to any big changes, T-Mobile appears to be building momentum to win new customers at the expense of their competitors. It’s too early to say definitively whether iPhone availability and its “Un-Carrier” strategy will improve T-Mobile’s fortunes, but at the very least these moves demand the attention of the other Big-Four carriers, and Compete will be monitoring competitive customer consideration and traffic to T-Mobile in the coming months.

About Jennifer Rutherford:
Jennifer is an Insights Associate in the Technology & Entertainment vertical at Compete, where she analyzes Compete data to help clients drive marketing decisions. Before joining Compete, Jennifer worked in Education and Market Research, analyzing the emotional impact of advertising. Based in Boston, she enjoys being outside of the city either skiing or on the beach. Connect with her on LinkedIn