T-Mobile poor subscriber figures linked to lack of data network

8 Aug 2008

T-Mobile USA reported that it added 668,000 net new customers in the second quarter to 30 June, taking its total subscriber base to 31.5 million. This is a noticeably smaller addition than in recent quarters (e.g. 981,000 in the first quarter 2008, and 857,000 in the second quarter 2007), and accompanied with increases in churn of 1.9% for contract customers and 2.7% blended, suggests the operator may be suffering for its lack of a high speed data network. T-Mobile is building out its 3G data network, but has only launched commercial services in a couple of markets, while competitors AT&T and Verizon are already able to offer customers this service across their networks.

Despite its 3G lagging, T-Mobile increased its quarterly average revenue per user (ARPU) to USD52, up from USD41 in the first quarter but down from USD53 in the same quarter of 2007. Pre-paid ARPU in the quarter to 30 June was USD23, while data revenue was USD8.6 per customer, up from USD8.5 in the previous quarter. The company’s total revenues were USD5.47 billion as service revenues increased to USD4.85 billion in the quarter, compared to USD4.20 billion in 2Q 2007.

United States, T-Mobile US