CONSHOHOCKEN, Pa.-Sprint Nextel Corp. wireless affiliate UbiquiTel Inc. posted a disappointing 10,700 net customer additions during the third quarter, which was well below the 17,500 subscribers the carrier added last year although in line with estimates. UbiquiTel ended the quarter with 434,300 direct subscribers and 127,100 wholesale customers on its network.
The carrier blamed its year-over-year drop in customer additions on a 12-percent decrease in gross customer additions that offset an improvement in customer churn from 2.9 percent last year to 2.6 percent this year. Average revenue per user also dropped from $58 during the third quarter of last year to $56 this year.
Despite the customer and recurring revenue shortfall, UbiquiTel’s total revenues jumped more than 11 percent year-over-year from $97.7 million during the third quarter of last year to $108.8 million this year. Net income also improved from $1.5 million during the third quarter of last year, a return of 2 cents per share, to $6.2 million this year, a return of 6 cents per share.
