The US wireless market is witnessing a seismic shift as T-Mobile US surges ahead with remarkable subscriber growth and 5G expansion, challenging the long-standing dominance of Verizon and AT&T. In the second quarter of 2025, T-Mobile added an astonishing 1.7 million postpaid net subscribers, dramatically outpacing Verizon’s modest net loss of 9,000 and AT&T’s 401,000 additions. This performance highlights T-Mobile’s disruptive role in reshaping industry dynamics through aggressive pricing, innovative service bundles, and strategic acquisitions.
T-Mobile’s success story is anchored in its “Experience” tier plans, which cleverly bundle streaming services, generous hotspot data allowances, and price locks extending five years into the future. This approach has resonated with a broad spectrum of customers, from price-conscious users to premium subscribers, driving a postpaid churn rate of just 0.90%, significantly below the industry average. The company also posted a record 830,000 postpaid phone net additions in Q2, underscoring its potent appeal.
Beyond mobile subscribers, T-Mobile is making waves in the broadband arena through its 5G Fixed Wireless Access (FWA) service. The company added 454,000 FWA broadband customers in the quarter, swelling its total to 6.9 million and capturing 58% of the US FWA market—a clear indication of its dominance, especially in rural and underserved areas. This growth is further fueled by the $4.4 billion acquisition of UScellular’s mobile operations, which contributed 200,000 postpaid subscribers and bolstered T-Mobile’s spectrum assets by 30%. This deal enhanced the company’s coverage by one-third and capacity by 50%, strengthening its network infrastructure substantially.
Financially, T-Mobile’s Q2 2025 results reflect the rewards of its strategic bets. Revenue climbed 6.9% year-over-year to $21.13 billion, with postpaid service revenue up 9% to $14.1 billion. Core Adjusted EBITDA rose 6% to $8.5 billion, while net income surged 10% to $3.22 billion. These figures translate into a robust Core Adjusted EBITDA margin of approximately 48.9% and a net cash from operations margin of 40.1%, signaling strong operating leverage and efficient capital management.
Yet, T-Mobile’s financial story is not without complexity. Its price-to-earnings (P/E) ratio stood at 22.23 in July 2025—36% lower than its 10-year average of 35.0—reflecting market skepticism about its debt-laden growth model. Indeed, the company’s debt-to-equity ratio of 1.98 as of March 2025 is notably higher than Verizon’s 1.19 and AT&T’s 1.18, raising concerns about interest rate sensitivity and liquidity risks amid a challenging economic environment. However, T-Mobile’s disciplined capital allocation, including $2.5 billion in share repurchases and $996 million in dividends during Q2, demonstrates confidence in its ability to service debt while rewarding shareholders.
Looking ahead, T-Mobile’s 2025 guidance projects 6.1 to 6.4 million postpaid net additions and core EBITDA between $33.3 billion and $33.7 billion, signaling strong optimism about sustaining growth momentum. The company’s joint ventures with Metronet and expansion of T-Fiber fiber services could also add tens of thousands of fiber subscribers, diversifying revenue streams and reinforcing its broadband leadership.
Meanwhile, Verizon and AT&T, the traditional giants of the US telecom industry, reported solid but more nuanced second-quarter results. Verizon posted a 5.2% increase in total operating revenue to $34.50 billion, surpassing Wall Street expectations, with wireless service revenue rising 2.2% to $20.9 billion. The company’s net income climbed 8.9% to $5.12 billion, and diluted earnings per share reached $1.18. AT&T similarly reported a 3.5% rise in total revenues to $30.85 billion and a 3.5% increase in mobility services revenue to $16.85 billion. Its net income surged 23.1% to $4.86 billion, with diluted earnings per share at 62 cents.
However, both Verizon and AT&T faced challenges in their business services segments. Verizon Business’s overall operating revenue dipped slightly by 0.3% to $7.28 billion, with declines in enterprise and public sector revenues by 3.1% to $3.44 billion and wholesale revenue falling 10.5% to $494 million. Conversely, Verizon’s business markets and other revenue rose 4.5% to $3.35 billion. AT&T’s Business wireline services experienced a more pronounced 9.3% decline to $4.31 billion, with legacy and transitional services dropping 17.3% to $2.35 billion, though its business fiber and advanced connectivity services grew 3.5% to $1.79 billion.
On the subscriber front, Verizon added 278,000 fixed wireless broadband customers, increasing its total to over 5.1 million. Its business segment reported 65,000 wireless retail postpaid net additions, including 42,000 postpaid phone net additions. AT&T outpaced Verizon in postpaid phone net additions, adding 401,000 during the quarter. Both companies also saw significant growth in wireless equipment revenue—Verizon’s up 25.2% to $6.26 billion and AT&T’s up 18.8% to $4.99 billion.
Acquisition activity is shaping the future landscape for these telecom titans. Verizon secured Federal Communications Commission approval for its $20 billion acquisition of Frontier Communications in May 2025, a deal that will expand its fiber-optic internet footprint. Earlier, in October 2024, Verizon also agreed to purchase a portion of U.S. Cellular Corp.’s spectrum licenses for $1 billion, further bolstering its network capabilities.
AT&T is making strategic moves as well, confirming a $5.75 billion deal to acquire Lumen Technologies’ 11-state mass market fiber-to-home business. This acquisition, expected to close in the first half of 2026, will add about 4 million fiber locations and roughly 1 million subscribers to AT&T’s portfolio, significantly enhancing its fiber network reach.
In this evolving competitive arena, T-Mobile’s aggressive subscriber growth and 5G leadership are challenging the traditional duopoly of Verizon and AT&T. While T-Mobile’s higher debt levels present risks, its innovative pricing, network expansion, and disciplined capital returns offer a compelling case for investors eyeing long-term growth. Meanwhile, Verizon and AT&T continue to leverage their scale and acquisition strategies to maintain relevance in a rapidly changing market.
As the US wireless market transforms, the stakes have never been higher. T-Mobile’s surge has rewritten the playbook, but Verizon and AT&T’s resilience and strategic investments ensure the battle for supremacy is far from over. For consumers and investors alike, this dynamic competition promises more choices, innovations, and shifts in the telecom landscape for years to come.
