Leap Wireless (LEAP) reported a dip in service revenues for the fourth quarter, and although the carrier added customers, the rate of customer additions slowed. Fourth quarter service revenues were $700.2 million, down 4% from the year-ago quarter. Operating income was $60.6 million, but would have been negative if not for a net gain of approximately $106 million resulting from an exchange of spectrum licenses.
Leap reported 419,000 gross customer additions and approximately 337,000 net customer losses for the fourth quarter. Roughly 77% of the additions and 60% of the losses were related to Leap’s Cricket Wireless service. “During the fourth quarter, Cricket Wireless gross additions decreased by nearly 50% year-over-year due to general softness in the prepaid sector and increased average out-the-door selling price for our full-featured, better-quality devices,” said Leap CEO S. Douglas Hutcheson in a statement. Customer churn during Q4 was 4.6%.
In other prepaid news, T-Mobile USA’s GoSmart Mobile brand launched today throughout the United States. The service has been available in nine test cities, and is distinct from T-Mobile USA’s higher-end, HSPA+ prepaid service. GoSmart Mobile plans start at $30 per month for unlimited talk and text; $35 per month for unlimited talk, text, and 2G data; and $45 per month for unlimited talk, text, and 5 GB of 3G data.
T-Mobile USA offers two devices with the service, both priced below $100. Customers also have the option of using their own unlocked GSM phone with the service.
T-Mobile USA is owned by Germany’s Deutsche Telekom, which agreed last year to merge T-Mobile USA with MetroPCS, another U.S. carrier that has been aggressively expanding its prepaid offerings. An estimated 80 million Americans signed up for a prepaid phone plan last year.
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