T-Mobile USA Q3 results, backing LTE

7 Nov 2008

T-Mobile USA reported a net income of USD442 million in the three months to 30 September 2008, a 16% drop from USD526 million in the third quarter last year. Total revenue was USD5.51 billion, up from USD4.89 billion year-on-year, while service revenue was USD4.91 billion, up from USD4.33 billion in the third quarter 2007. Data services revenue for the quarter was USD850 million.

T-Mobile launched the G1, which runs on Google’s Android platform, and expanded its 3G UMTS coverage in the reporting period. The operator said it expects to have 3G services available in 120 cities by the end of November.

In the third quarter T-Mobile had 670,000 net subscriber additions compared to 857,000 in the third quarter of 2007. The company blamed the drop on contract churn which was 2.4%, and was likely to have been affected by AT&T’s launch of the Apple iPhone ahead of its own G1 launch in September. Average revenue per user (ARPU) was USD52, down from USD53 in the same period twelve months previously. Post-paid ARPU was USD55, down from USD57. Data accounted for 17.3% of blended ARPU, up from 15.4% in the third quarter of 2007.

In other news, T-Mobile has said it will not deploy HSPA+ but will instead skip this technical evolution and invest in LTE. The operator will deploy HSPA as far as its current hardware will allow, utilising software techniques to improve network efficiency, but will not spend on hardware upgrades. T-Mobile will be able to boost its current 7.2Mbps HSDPA network up to 14.4 Mbps on the downlink but not to the next step of 28.8Mbps that is enabled by HSPA+.

United States, T-Mobile US