The third quarter was a rough one for T-Mobile USA Inc. The carrier posted the lowest number postpaid net additions – 293,000 – since its inception in 2001, according to Kate Price of Technology Business Research Inc.
“Some high-value, postpaid subscribers were likely drawn to AT&T by the iPhone, while the downturn in the economy may have prompted more subscribers than usual to sign up for prepaid plans to save money,” Price said.
This assessment seems to be borne out by T-Mobile USA’s 377,000 prepaid net additions for the third quarter, a significant increase from the 143,000 prepaid customers it added during the second quarter of this year. T-Mobile ended the quarter with 32.1 million total customers
“AT&T indicated it saw 1 million customers switch to AT&T due to the iPhone and it appears many of those customers may have come from T-Mobile,” Price said.
Indeed, AT&T Mobility added more net customers in one quarter than it has ever before, while Verizon Wireless reported nearly equal customer additions. Sprint Nextel Corp. is set to report earnings tomorrow.
As for T-Mobile USA’s finances, the carrier posted $452 million in net income during the second quarter, down from the $526 million it scored in last year’s third quarter.
And as for T-Mobile USA’s customer metrics:
–The carrier’s average revenue per user, or ARPU, remained the same as compared with the second quarter, at $52. Last year the carrier saw ARPU range from $55 to $57.
–The carrier credited its low postpaid adds to higher churn, which reached 2.4% this quarter, up from the reported 1.9% churn in the second quarter. T-Mobile USA blamed the higher churn on the large number of expiring two-year contracts and the ever-present competitive pressure.
Interestingly, T-Mobile USA last month began selling the G1 by Google Inc. and HTC Corp. in an apparent attempt to staunch loses to AT&T Mobility and the iPhone. However, the device didn’t quite make it to store shelves in time to affect third-quarter numbers.
Devices in time for holidays
In other T-Mobile USA news, the carrier announced three new gadgets:
–Samsung Electronics Co. Ltd. Behold, a “3G-enabled touchscreen with full Web browsing,” according to the carrier. The device will go for $150 with a two-year contract starting Nov. 10
–T-Mobile cameo, which according to the carrier is a “digital picture frame that displays pictures sent to it via MMS and e-mail.” The device will be available “in the coming weeks” for $100 with a $10-per-month reoccurring charge.
–Samsung Gravity, which T-Mobile said will feature a slide-out QWERTY keyboard. The device will go on sale Nov. 17 for $50 with a two-year contract.
