CONSHOHOCKEN, Pa.—Regional wireless operator and current Sprint Nextel Corp. CDMA affiliate UbiquiTel Inc. scored 3,800 new subscribers during the first quarter, customers that brought the carrier’s total subscriber base—excluding reseller subscribers—to about 451,700 customers. The results were well below the 10,000 to 12,000 net customer additions expected by analysts and the 14,400 customers the carrier added during the first quarter of 2005.
Customer churn rose from 2.6 percent during the first quarter of 2005 to 2.8 percent this year, while average revenue per user remained steady at $55.
For the quarter UbiquiTel’s income jumped to $6.4 million, up from the $2.5 million it reported in the same quarter a year ago—despite the carrier’s $2.8 million in expenses related to its litigation against Sprint Nextel regarding Sprint Corp.’s acquisition of Nextel Communications Inc. The carrier’s revenues also jumped 54 percent during the period to $109.4 million for the first quarter of 2006.
Sprint Nextel recently announced plans to acquire the company for $1.3 billion, which analysts expect to close later this year.
The carrier’s stock was up slightly on the news to about $10.36 per share.
