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Churn, postpaid losses hurt T-Mobile USA

High churn and significant postpaid customer defections hurt T-Mobile USA Inc. (DTGEY) in its fourth-quarter financial report. The nation’s fourth-largest carrier lost 318,000 postpaid customers in the fourth quarter and a net loss of 23,000 customers overall. Revenue inched up 0.9% for the year to $4.69 billion, leading to a Q4 net income of $268 million, down 16% from the previous quarter and 12.4% a year ago.
“Our service revenues increased year-on-year in the fourth quarter. Data ARPU (average revenue per user) growth rates are outperforming our main competitors as we leverage our 4G network and provide rich and compelling smart phones and data plans. However, high contract churn and significant contract customer losses in the fourth quarter of 2010 indicate that we still have a fair amount of work ahead of us and that any turnaround will take time. With the ongoing implementation of our challenger strategy we are laying the foundation for improved performance going forward,” said Philipp Humm, president and CEO of T-Mobile USA.
Deutsche Telekom CEO Ren

ABOUT AUTHOR

Tracy Ford
Tracy Ford
Former Associate Publisher and Executive Editor, RCR Wireless NewsCurrently HetNet Forum Director703-535-7459 [email protected] Ford has spent more than two decades covering the rapidly changing wireless industry, tracking its changes as it grew from a voice-centric marketplace to the dynamic data-intensive industry it is today. She started her technology journalism career at RCR Wireless News, and has held a number of titles there, including associate publisher and executive editor. She is a winner of the American Society of Business Publication Editors Silver Award, for both trade show and government coverage. A graduate of the Minnesota State University-Moorhead, Ford holds a B.S. degree in Mass Communications with an emphasis on public relations.