CINCINNATI-Cincinnati Bell Inc. reported that its wireless division, which is an AT&T Wireless Services Inc. network partner, posted a 6-percent year-over-year drop in revenues from $68.9 million during the third quarter of 2002 to $65.1 million during the third quarter of 2003, while operating income dropped 12 percent year over year from $22 million last year to $19.4 million this year.
The regional carrier said it ended the third quarter with 461,000 wireless subscribers, which was a 1-percent decrease from the third quarter of 2002. Postpaid churn was reported at 1.9 percent during the third quarter, while postpaid average revenue per user was $59 and prepaid ARPU was $19.
Cincinnati Bell’s management added that in anticipation of the launch of its GSM/GPRS network, which began serving customers Oct. 15, the company focused on managing cash flow during the third quarter and targeting highly profitable prepaid subscribers that involve lower acquisition costs and whose usage characteristics require little capital investment in its legacy TDMA network.
The focus resulted in prepaid cost per gross addition during the quarter of $42 compared with $388 during the quarter for the carrier’s postpaid gross additions.
