NEW YORK-The wireless surge continued during the fourth quarter with Verizon Wireless officially claiming an industry-record 2 million net customer additions and T-Mobile USA Inc. reporting a company-record 1.4 million net customer additions. The strong results followed Cingular Wireless L.L.C.’s announcement earlier this week that it added a company-record 1.8 million subscribers during the fourth quarter.
Verizon Wireless noted its strong growth was bolstered by a staggeringly low 1.2-percent customer churn rate during the quarter, which tied a company record set during the second quarter of last year. Verizon Wireless reduced its churn rate from 1.4 percent in the fourth quarter of 2004, while its churn rate for the year was 1.3 percent, down from 1.5 percent for 2004.
Verizon Wireless, which released its customer figures earlier this week through Vodafone Group plc, reported that its total revenues were up 18.3 percent from the same quarter last year to $8.7 billion, and that its earnings before interest, taxes, depreciation and amortization margin was at 46.8 percent. The carrier’s retail net additions increased 15.4 percent, to 1.8 million of the 2 million total net subscriber additions during the quarter. Average revenue per user was $49.36 for the quarter and $49.49 for the year, shrinking 1.9 percent from the fourth quarter of 2004 and 1.5 percent year-over-year.
Verizon Wireless’ data services revenue for the year totaled $2.2 billion, more than double its 2004 figure. The fourth quarter’s contribution was $731 million, up 5.6 percent from the prior year’s quarter. The company counted 23.7 million data customers at the end of 2005, up 43 percent from 2004. Verizon Wireless reported that more than 3.5 million people now have broadband-capable devices that can be used to access its 3G network.
Meanwhile, Deutsche Telekom AG subsidiary T-Mobile USA said it reduced fourth-quarter combined churn to 2.9 percent from 3.1 percent in 2004. Postpaid churn was 2.3 percent for the quarter-an improved from 2.6 percent at the same time last year-while prepaid churn held steady at 6.6 percent. T-Mobile USA noted that about a third of the 1.4 million net customers added, or 34.5 percent, were prepaid customers, and the carrier ended the year with a 21.7 million customer base that is 85 percent postpaid. The company’s full financial results are expected to be released on March 2.
