T-Mobile CEO Mike Siebert talks about 5G home internet.
Consumers have flocked to T-Mobile’s 5G home internet service, and in just two years, T-Mobile has become one of the nation’s largest internet service providers.
But will T-Mobile slow its growth by raising prices? perhaps.
T-Mobile CEO Mike Siebert hinted at the outlook to investors on Thursday’s earnings call with the vague term “optimization,” which is about profitability and shareholder value. is a financial term that refers to the possibility of adjusting prices higher to maximize
But why does T-Mobile want to slow the growth of its 5G home internet business? I predicted it. Anything beyond that would require T-Mobile to invest money in its network to support additional customers. The company hasn’t decided whether to do so yet, so it could reach its limit in the next year or two.
Given that T-Mobile is growing faster than its own expectations, it wouldn’t be surprising if T-Mobile increased its prices to take advantage of increased demand. Earlier this month, the company removed promotional pricing for the service and returned it to its standard price of $60 per month, a $10 increase.
This is not the first time Mr. Siebert has hinted at rising prices. He told investors at a UBS conference in December that he was open to tinkering with pricing.
“Over the next year, we may end up experimenting with the relationship between rate and volume,” Siebert said. “We want to make sure we add the most value to the business.”
