Higher revenues, net adds can’t stem losses at iPCS

Sprint Nextel Corp. PCS affiliate iPCS Inc. reported increased revenues and net customer additions for the fourth quarter of 2006, but still recorded an overall loss for the quarter of $12 million.
iPCS earned total revenues of $133 million in 2006’s fourth quarter, up from about $110 million from the previous year’s fourth quarter. The company’s loss was less than the $17.2 million shortfall that it record in the fourth quarter of 2005.
iPCS improved its churn rate from 2.6 percent to 2.4 percent year-over-year, driving customer net additions of 27,000, up from 18,900 in 2005’s final quarter. The carrier ended the year with 561,300 subscribers. Average revenue per user, without including roaming, increased from $49 to $51 year-over-year.
The affiliate is in an ongoing legal battle with Sprint Nextel. IPCS sued the carrier for violating affiliate agreements in the wake of Sprint’s merger with Nextel. IPCS expects an appellate court to rule on the matter late this year or early in 2008.
iPCS also said that it submitted new affiliate-service rates from Sprint Nextel to binding arbitration, and said it vigorously opposes new roaming rates established by the company even though it is currently paying them.