Telecom network operator T-Mobile US today said it made an investment of $1.3 billion towards Capex (capital expenditure) in the first quarter of 2016 – focusing on 4G expansion.
T-Mobile’s investment in Q1 2016 was low as compared with $1.4 billion in the fourth quarter of 2015 and up from $1 billion in the first quarter of 2015.
Capital expenditures in 2016 will be in the range of $4.5 to $4.8 billion, unchanged from previous guidance, said T-Mobile.
Due to investment program, T-Mobile covers 308 million POPs with 4G LTE, which includes partner LTE coverage. The company has deployed Wideband LTE to add capacity and is expanding Extended Range LTE to enhance coverage and in-building performance.
Extended Range LTE, which operates on low-band 700 MHz A-Block spectrum, covers approximately 194 million people in more than 340 market areas.
Following the acquisition of additional 700 MHz A-Block spectrum licenses, T-Mobile’s low-band spectrum holdings will increase from 210 million POPs to 258 million POPs.
The company has also filed to participate in the 600 MHz broadcast incentive auction.
T-Mobile has added 2.2 million subscribers in Q1 2016, competing with Verizon Wireless, AT&T and Sprint in a highly competitive market. T-Mobile, the third largest wireless operator in the U.S., has customer base of more than 65.5 million at present.
Service revenue of T-Mobile was $6.6 billion (+13 percent), while total revenue was $8.6 billion (+10.6 percent) with a net income of $479 million.
John Legere, president and CEO of T-Mobile, said: “Our model is working and the business momentum is accelerating across the board. Customers are joining the Un-carrier revolution and that is producing incredible financial results.”
The highlight of the first quarter earnings is the fact that T-Mobile CEO John Legere has turned around the mobile operator by adding net income of $479 million in Q1 2016 against $297 million net income in the fourth quarter of 2015 and $63 million net loss in the first quarter of 2015.