Dobson Communications Puts 3Q Net Subscriber Base Down 24,100"

OKLAHOMA CITY -(Dow Jones)- Dobson Communications Corp. (DCEL) expects to report a net subscriber reduction of about 24,100 for the third quarter, compared with a net addition of 1,200 in the year-earlier period, and the company announced a six-year roaming agreement with Deutsche Telekom AG's (DT) T-Mobile USA Inc.

In a press release Monday, the nation's largest independent rural wireless provider said the third-quarter decline in its subscriber base reflects a drop of 34,500 in its postpaid customer base, compared with a drop of 7,500 a year earlier. For the second quarter, Dobson reported a net subscriber reduction of 1,100, reflecting a drop in its postpaid customer base of 9,000.

Dobson expects to report about 131,400 total gross subscriber additions for the third quarter, up from 121,600 in the year-earlier period and down slightly from 131,500 in the second quarter.

Dobson Communications said postpaid customer churn - a measure that tracks turnover - is estimated to be about 2.82% for the third quarter, compared with 2.05% a year earlier and 2.25% for the latest second quarter.

The company said as of Sept. 30, about 58% of its 1.6 million subscribers were on Global System Mobile calling plans, compared with 47% at the end of the second quarter. During the quarter, about 101,400 Time Division Multiple Access customers switched to GSM calling plans. Dobson has been focusing throughout the year on transitioning its subscriber base to GSM calling plans.

Dobson expects to report about 668 million roaming minutes of use for the third quarter, compared with 462 million a year earlier. The figures reflect same-store results, including acquisitions in both periods.

Dobson estimates third-quarter average revenue per unit will be about $46.75, compared with $41.20 a year earlier and $45.28 for the second quarter of 2005.

When the company reported second-quarter results in August, it expected its subscriber base in the second half of the year to remain flat or decline slightly. It also projected its subscriber base would be about two-thirds GSM by the end of the year.

The company plans to report third-quarter results on or before Nov. 1.

Analysts surveyed by Thomson First Call, on average, expect Dobson to report a third-quarter loss of 4 cents a share, on revenue of $292.4 million.

For the year-earlier period, the company had a loss of 10 cents a share, on revenue of $272.4 million.

Under the agreement with T-Mobile, Dobson will buy part of T-Mobile's personal communications service spectrum, covering about 3.4 million points of presence, or POPs, and lease part of its spectrum covering another 100,000 POPs.

Dobson will buy spectrum in Kansas, Kentucky, Michigan, Missouri, Minnesota, New York, Ohio, Oklahoma, Pennsylvania, Texas and West Virginia, and lease spectrum in Minnesota and Oklahoma.

Financial terms of the deal, which is subject to regulatory approvals and finalization of definitive agreements, weren't disclosed. The planned transaction will expand the existing business relationship between the companies.

Dobson's shares closed Friday at $7.49, down 30 cents, or 3.9%. The stock reached a 52-week high of $8.47 on Oct. 3, and a 52-week low of $1.18 on Oct. 19, 2004.

Company Web site: www.dobson.net

-Tom Rojas; Dow Jones Newswires; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 10th October 2005