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T-Mobile USA adds 857,000 new customers

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Nov. 9, 2007

Overall, T-Mobile USA added 857,000 new users during its latest third quarter, according to T-Mobile's earnings results released yesterday.

USA's fourth largest wireless carrier now serves almost 28 million customers.

T-Mobile USA also reported ARPU (Average Revenue Per User) of $53, up from $52 for the same quarter in 2006, and reduced contract customer churn to 2 percent from 2.3 percent year over year.

Robert Dotson, CEO and president of T-Mobile USA said "around the beginning of the quarter, we introduced yet another in our series of breakthrough services aimed at bringing T-Mobile to greater numbers of new customers."

Dotson added "our new HotSpot@Home service is changing the game by allowing customers to make unlimited calls from home over Wi-Fi while providing the best in-home wireless coverage possible. This service opens up an important new growth area for our company to go after, the displacement of landline telephone service with T-Mobile service."

The company also announced changes to its contract policies, offering more flexibility for customers who may terminate their contracts early.

T-Mobile USA announced that now earlier termination fees would decline during the course of a customer's contract.

The new contract terms and early termination fee policies are expected to be finalized and available to customers beginning in the first half of next year.

Sue Nokes, senior v.p. of sales for T-Mobile USA said "we want to do everything possible to create a great experience so customers want to stay with us for years."

She added "this announcement builds on our heritage of listening closely to our customers and always striving to meet their needs."

Updating contract terms, especially revamping early termination fees, has become a carrier trend recently.

Overall, AT&T and Verizon Wireless have both recently announced prorated early termination fees for customers, based on how long the customer has remaining on his or her contract.

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Source: Wireless Week


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