T-Mobile CEO hints at 5G home internet price increases

T-Mobile CEO hints at 5G home internet price increases

Consumers have gravitated towards 5G home internet because of the simple installation and low price. T-Mobile may tweak the latter in 2024.

T-Mobile CEO Mike Seifert suggested this during his fireside chat at the UBS investor conference on Tuesday.

“You may see us experimenting with rate-versus-volume dynamics over the next year,” Seifert said. “We want to make sure we add as much value to the business as possible.”

When deciphering the business jargon, T-Mobile’s “trial” of price indicates a potentially higher price. “Volume dynamics” means the number of customers willing to subscribe to the service. He knows that a more expensive plan might dampen some enthusiasm for the service, but with the company adding nearly half a million new 5G home internet subscribers each quarter, that’s something he can live with.

The comments underscore the momentum T-Mobile has with 5G home internet. Although it wasn’t the first company to offer so-called fixed wireless broadband (that would be Verizon), it has quickly risen to a leadership position over the past year. In the third quarter, it added 557,000 new 5G home internet customers, besting Verizon’s 384,000 and far ahead of any cable broadband operators by a wide margin.

T-Mobile has such a leading position that it’s willing to experiment with pricing next year. This is largely because the company sees this as a potential business. It previously predicted that 5G home internet service could accommodate up to 8 million homes, as it uses excess capacity from its cellular network. It expects to achieve this goal by 2025, but its current rapid pace means it is actually ahead of schedule.

Sievert didn’t go into any detail about the price increase, and the company may not follow through on his proposal.

But he added that the service’s sales volume is declining, and its net promoter score, which calculates how willing a person is to recommend the service, is higher than cable and, in some cases, higher than fiber.

“It’s a product that surprised people,” he said.

So it’s no wonder Seifert is considering raising the price.

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