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T-Mobile decreases U.S. churn, increases ARPU

BELLEVUE, Wash.-T-Mobile International AG reported detailed second quarter results for its U.S. operations consisting of VoiceStream Wireless Corp. and Powertel Inc., reaffirming its 525,900 net customer additions and ending the quarter with 8 million total subscribers. Contract customers increased from 5.7 million in the first quarter to 6.4 million at the end of the second quarter, while pre-pay subscribers dropped from 1.8 million to 1.6 million.

Customer churn dropped from 4.4 percent during the first quarter to 4.1 percent during the second quarter with contract churn falling from 2.7 percent to 2.5 percent. Average revenue per user increased slightly from $48 to $49 with cost per gross customer addition also rising from $291 to $311.

Total revenues for the quarter increased from $1.2 billion reported during the first quarter of this year to $1.3 billion, led by a $100 million jump in service revenue.

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