T-Mobile is seeing substantial success in what the company calls small markets and rural areas that comprise 40% of the U.S. population, said CEO Mike Sievert at an investor conference yesterday.

“With each passing quarter, you see a step change in our ability to compete in small markets and rural areas,” Sievert said.

As of 2021, T-Mobile’s market share in those markets was in the low teens but has now reached 16% and is on its way to hitting the company’s target of 20% by 2025, according to Sievert.

“And there’s no reason to believe it stops there,” he said.

T-Mobile Rural

Using T-Mobile’s definitions there are 775 small markets and rural areas in the U.S. The company classifies these markets into various categories, including “license to win” markets that have the most potential and “license to play” markets that also have potential, but not as much.

“License to win” markets are where “you start to bring in your marketing, your distribution, your whole formula for winning,” Sievert said.

In two thirds of markets that fall into either the “license to play” or “license to win” category, T-Mobile’s market share is in the mid-30s, Sievert said.

Although Sievert’s comments focused primarily on mobile service, he also noted that 40% of gross net adds for the company’s Home Internet fixed wireless service are now coming from small and rural markets.

Sievert made his comments at the J.P. Morgan Global Technology, Media and Communications Conference. A replay is available at this link.

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