T-Mobile USA Adds Almost 1 Million Net New Customers

T-Mobile USA has reported that at the end of the first quarter of this year, the company had more than 26 million customers, adding over 980,000 net new customers during the quarter, of which 726,000 were Contract. T-Mobile USA also reported ARPU of US$52 in the quarter, OIBDA of US$1.22 billion, up 11% over the first quarter of 2006, and a reduction in Contract churn to 1.9%.

"myFavessm is the most successful offering we've had in the history of T-Mobile and it is changing the nature of our business," said Robert Dotson, Chief Executive Officer and President of T-Mobile USA. "We continue to add high quality customers to our ranks and myFaves is a key reason why. In the quarter, we added almost one million new customers, of which almost three quarters were again additions to our strong Contract customer base. In the quarter, we also captured our fifth consecutive J.D. Power and Associates award for Overall Customer Satisfaction. This type of honor underscores the consistent strength of everything from the quality of our calls to the responsiveness of our employees to solving our customers' communication needs. We know this kind of recognition is simply an indicator that we are on the right path. Our quest to provide the best service experience in America remains a goal for which we will forever strive."

T-Mobile says that contract customer net additions made up 74% of first quarter customer growth, up from 70% in the first quarter of 2006, and down from 87% in the fourth quarter of 2006. Contract customers comprised 84% of T-Mobile USA's total customer base at March 31, 2007.

Contract churn declined to 1.9% in the first quarter of 2007 from 2.1% in both the first and fourth quarters of 2006. Blended churn, including both Contract and prepaid customers, was 2.6% in the first quarter of 2007, down from 2.9% in the fourth quarter of 2006 and 2.7% in the first quarter of 2006.

T-Mobile USA reported OIBDA of $1.22 billion in the first quarter of 2007, up from $1.17 billion in the fourth quarter of 2006 and $1.10 billion in the first quarter of 2006. Net income for the first quarter of 2007 was $315 million, up from $179 million in the fourth quarter of 2006 and $241 million in the first quarter of 2006.

The total number of SMS and MMS messages increased to almost 16 billion in the first quarter of 2007, compared to almost 13 billion in the fourth quarter of 2006 and 7 billion in the first quarter of 2006."

Posted to the site on 10th May 2007