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Aug. 9, 2008

T-Mobile USA added 668,000 new subscribers during its second quarter, registering some 300,000 fewer additions than it did in Q1.

The wireless operator attributed the decreade in new customer additions to higher contract churn.

The operator saw its contract customer churn increase to 1.9 percent in Q2 from 1.7 percent in Q1 and 1.8 percent for Q2 2007.

The growth in its churn rate was blamed on 2-year contracts, which were introduced in April 2006 and expired during this quarter.

Analysts said the increased churn could suggest that customers are leaving T-Mobile in favor of the faster networks of AT&T and Verizon Wireless.

Overall expansion of T-Mobile's 3G network is vital for the company to grow voice and data revenue and attract subscribers with new applications and devices.

Total revenues, including service, equipment and other revenues were $5.47 billion during the quarter, up from $5.19 billion in Q1 2008 and $4.78 billion in the second quarter of last year.

T-Mobile USA did add 1.1 million subscribers through its acquisition of SunCom Wireless.

But SunCom didn’t even account for any measurable impact on T-Mobile USA’s Q1 and Q2 metrics.

René Obermann, Deutsche Telekom CEO said "with continued double-digit dollar growth in revenues and OIBDA, T-Mobile USA continues to be one of the leading growth drivers for Deutsche Telekom."

He added "we remain very excited about the future growth opportunities in the U.S., especially in mobile data as we look toward a national introduction of our new 3G network later in 2008."

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Source: T-Mobile USA.