T-Mobile’s announcement that it would give every customer a share of stock in the company seems to have had little impact on the financial market’s view of the company, judging by the company’s stock price performance since the news hit mid-day yesterday. T-Mobile stock opened at $43.72 this morning after closing at $43.07 yesterday after the news of T-Mobile giving stock to customers – at least one share per customer.
The news of T-Mobile giving stock to customers was one part of a three-part “Un-carrier 11” or “#GetThanked” announcement yesterday. Another element of the program is “T-Mobile Tuesday,” which will give customers a range of freebies every Tuesday. The third is one free hour of WiFi connectivity on any flight supporting WiFi from Gogo.
T-Mobile Giving Stock to Customers
T-Mobile giving stock to customers, a program called “Stock Up,” calls for each customer to get one share of stock. New customers signing up for Simple Choice service also get a share.
Additionally, customers have the option of earning another share for each new customer they refer – up to 100 customers per year. Customers who have been with T-Mobile for at least five years get two shares for every referral they make.
The move “makes it official,” T-Mobile CEO John Legere said in a video interview with Bloomberg yesterday. Customers, he said, are owners “and I work for them.”
T-Mobile will not be issuing new shares to support “Stock Up,” but instead plans to purchase shares on the open market to support the program. Customers taking the offer will get a free brokerage account with LOYAL3 for one year and there are no fees if customers opt to sell their shares.
In the Bloomberg interview, Legere noted that the Stock Up program, in connection with other elements of #GetThanked, would enhance already strong customer loyalty. Legere told the interviewer that “whatever the financial impact is, it’s baked into our plans.”
Customers can begin to claim their free T-Mobile shares today.
T-Mobile Tuesday will give customers a range of deals from partners including Domino’s, Wendy’s, VUDU, Gilt, Fandango, StubHub, Legendary Pictures, Universal PIctures, Lyft and others. Every week customers will be able to get a free medium two-topping Domino’s pizza, a free small Wendy’s Frosty and a free movie rental from VUDU. Additionally, T-Mobile said more partners would be revealed every Tuesday.
Reportedly T-Mobile will cover some of the costs of T-Mobile Tuesday but partners also will cover some costs.
The free WiFi on Gogo-equipped flights builds on a previous offer of free texting on Gogo flights for T-Mobile customers. According to T-Mobile, Gogo WiFi is available on 67% of all connected domestic planes and millions of flights per year.
A notable aspect of the #GetThanked announcement is that none of the news relates to service or pricing. Some industry observers – particularly those with a network and service focus — had questioned whether there were any moves left for T-Mobile to make. But clearly the company’s marketing creativity hasn’t run out yet.