Add to del.icio.us     Digg this

Mar. 2, 2007

T-Mobile USA, the wireless division of Deutsche Telekom added 901,000 new customers in the fourth quarter.

This pushed it above the 25 million customer level for the first time.

Of the 901,000 additions, 87 percent were postpay customers, up from 66 percent in the year-ago quarter.

The fourth-quarter results follow T-Mobile’s 802,000 third-quarter increase. Of its 25 million customers, 85 percent are postpay. T-Mobile USA also lowered customer churn, from 2.3 percent in the third quarter to 2.1 percent in the fourth.

Overall, revenue was up across most segments of T-Mobile’s business, with service revenues rising from $3.72 billion to $3.81 billion. Revenue from data services also grew, reaching $475 million in the quarter.

According to the company, a lot of this growth came from T-Mobile’s addition of data devices such as the BlackBerry Pearl and T-Mobile Sidekick 3.

Net income for the company was $179 million in the fourth quarter, down from $1.79 billion in the third. The large difference is due mostly in part to the recognition of non-cash income tax benefits in the third quarter.

Average revenue per unit (ARPU) remained steady at $52 when compared to previous quarters.

T-Mobile USA attributed much of its growth to its myFaves program and new 2-year agreements. "myFaves is attracting a new class of customers to our company," said Robert Dotson, CEO and president of T-Mobile.

Meanwhile, parent company Deutsche Telekom announced a quarterly loss of $1.2 billion. Even though overall sales improved 2.4 percent to $21 billion, one-time charges and the loss of traditional wireline customers contributed to the loss.

Deutsche Telekom lauded its U.S. wireless business as one sector of the company continuing to provide growth.

"T-Mobile USA is playing an increasingly vital role in bringing a service leadership culture to all of Deutsche Telekom," said Rene Obermann, CEO.

He added "at more than 25 million customers and growing, the U.S. business continues to assert its position as the leading growth driver for Deutsche Telekom."

Add to del.icio.us     Digg this

Source: Wireless Week