CINCINNATI-Regional telecommunications provider Cincinnati Bell Inc. reported 2,000 net subscriber additions for its wireless operations during the fourth quarter of last year and 7,000 net subscriber additions for the year. The company said it ended last year with 481,000 total wireless subscribers, including 306,300 postpaid GSM and TDMA customers and 174,700 prepaid GSM and TDMA customers.
Cincinnati Bell noted that postpaid customer churn dropped from 3.68 percent during the third quarter of last year to 2.78 percent during the final three months of the year due to improved network quality as the company transitions from its legacy TDMA technology to GSM technology.
Postpaid average revenue per user dropped 7 percent year-over-year during the fourth quarter to $51, which Cincinnati Bell attributed to customers migrating to lower ARPU plans and lower roaming revenues. Prepaid ARPU increased 12 percent year-over-year during the fourth quarter to $19.
Wireless revenues increased 3 percent during the fourth quarter from $62.6 million in 2003 to $64.3 million last year, while full-year wireless revenues increased from $259.5 million in 2003 to $261.7 million last year. Cincinnati Bell attributed the growth to increases in equipment, data and prepaid voice revenue offsetting lower postpaid voice revenue.
Wireless operating income dropped from a loss of $900,000 during the fourth quarter of 2003 to a loss of $9.2 million last year, while full-year losses dropped from a return of $60.2 million in 2003 to a loss of $1.4 million last year. The quarterly decline was attributed to a $3 million one-time adjustment to rent expenses as well as increased operational expenses. The full-year decline was attributed to $35 million in depreciation, amortization and asset write-offs related to the company’s transition from TDMA to GSM technology.
Cincinnati Bell recently signed an agreement with Cingular Wireless L.L.C., freeing the regional provider from its affiliation agreement with AT&T Wireless Services Inc., which Cingular acquired last October, and providing Cincinnati Bell with a long-term roaming agreement with Cingular. The deal also provided Cincinnati Bell with the ability to acquire Cingular’s 19.9-percent stake in Cincinnati Bell formerly held by AWS.
