WEST POINT, Ga.-Powertel Inc. said it added 38,000 net personal communications services customers during the first quarter, closing the period with about 157,000 total PCS subscribers.
PCS revenues and sales reached $32.2 million during the quarter, compared with $20.7 million in the fourth quarter. The company said its PCS operating expenses were lower in the first quarter than in the fourth quarter because of decreased spending on advertising and reduced phone subsidies. Operating expenses were $69.8 million, compared with $76.7 million for the fourth quarter.
Operating loss for Powertel’s PCS segment was $37.6 million during the recent quarter compared with $56 million in the fourth quarter. Average revenue per PCS subscriber increased to $57.23 from $54.06 in the fourth quarter.
Powertel reported overall monthly churn was 3.5 percent, flat with the fourth quarter. Non-pay accounts still are the primary driver of churn, said Powertel, and the company expects collections and credit actions it implemented in the fourth quarter to reduce churn in the future.
“The launch of major markets in Kentucky and Tennessee are still on schedule for late in the fourth quarter,” said Allen Smith, Powertel president and chief executive officer. “By providing service in Nashville, Tenn., and Louisville, Lexington and Frankfort, Ky., Powertel will have an even greater competitive footprint advantage over its cellular and PCS competitors.”
Powertel also said it was on schedule to launch dual-mode, pre-pay and enhanced wireless data services later this year.
Through its InterCel cellular division that serves portions of Alabama and Georgia, Powertel added about 1,300 net cellular subscribers during the first quarter, closing the period with about 26,600 subscribers. Revenue per cellular subscriber was $37.92, down slightly from $38.06 in the fourth quarter. The cellular business generated $1.6 million in operating income compared with $1.3 million in the previous quarter. Average monthly churn rate was 1.6 percent compared with 1.9 percent in the fourth quarter.
