T-Mobile: Churn up from a year ago but myTouch 3G may change that

T-Mobile: Churn up from a year ago but myTouch 3G may change that

Summary: T-Mobile said Thursday that it added 325,000 net customers in its second quarter, but a contract churn rate of 2.2 percent, up from 1.

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TOPICS: Mobility, Hardware, Wi-Fi
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T-Mobile said Thursday that it added 325,000 net customers in its second quarter, but a contract churn rate of 2.2 percent, up from 1.9 percent a year ago is a trouble spot. T-Mobile said that its new Android-powered myTouch 3G and a distribution pact with RadioShack gives it "opportunities for new growth."

T-Mobile, the U.S. mobile unit of Deutsche Telekom, ended the quarter with 33.5 million customers, good for fourth place among carriers. However, T-Mobile is adding customers as third place Sprint is losing them.

Also see: Hands on: T-Mobile myTouch 3G Google Android device is all about you

Among the more notable second quarter figures released by T-Mobile (statement):

  • The company reported net income of $425 million in the second quarter, down from $452 million a year ago. Revenue was $5.34 billion, down from $5.47 billion a year ago.
  • Net customer additions of 325,000 was off the pace of 415,000 in the first quarter and 668,000 in the second quarter a year ago.
  • Contract customers were 81 percent of T-Mobile's customer base.
  • Contract churn in the second quarter was 2.2 percent, down from 2.3 percent in the first quarter. In the year ago quarter, T-Mobile's contract churn was 1.9 percent. Blended churn---including prepaid and contract customers---was 3.1 percent, up from 2.7 percent a year ago. Blended churn was hit by "competitive intensity."
  • Average revenue per user was $48 in the second quarter, down from $55 a year ago.

What remains to be seen is whether the well-received myTouch can improve T-Mobile's metrics. Competition remains fierce and Verizon Wireless is expected to enter the Android-powered handset market in the fourth quarter with Motorola.

Topics: Mobility, Hardware, Wi-Fi

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4 comments
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  • I'll take actual 3G over a new phone mkay

    Actually getting 3G out to their customers would do more for them than releasing a niche phone that is just a rehash of the original. I understand though, it is always easier to sell with clever marketing than to actually have a better product. Hooray for advertising fuckers
    User 13
  • RE: T-Mobile: Churn up from a year ago but myTouch 3G may change that

    Well i think apple is the best phone ever they have changed the concept of mobile phone as they come up with the softest but reliable touch screen system. And Now they are coming up with new Apple Tablet PC which will be out next month here in UK. Yes it is true. Here is the information http://www.domesticutilities.com/apple.htm
    kashiqi
  • RE: T-Mobile: Churn ... driven by my.t-mobile.com website usability issues?

    The t-Mo Forums reveal lots of users having inordinate difficulties occasioned by the new "improved" t-Mo web site. Impossibility to pay bills, to adjust email-to-SMS gateway filters, to avoid "500"-style Server Error issues, and more. Numerous posters report being about to port their t-Mo service to another carrier in frustration over these issues, which date from about the time the new web coding went live in late May or early June, and have yet to be resolved.
    fejlinton
  • RE: T-Mobile: Churn up from a year ago but myTouch 3G may change that

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