In a statement, T-Mobile said its churn rate increase was "impacted by competitive intensity." Translation: Any bump that T-Mobile received from devices like the G1 has evaporated.
T-Mobile still managed to add 415,000 net customers in the quarter. The company argues that it is aggressively rolling out its 3G network and lining up devices to attract more customers.
Total revenue for T-Mobile was $5.4 billion in the first quarter, up from $5.19 billion a year ago. Net income in the quarter was $322 million, down from $462 million a year ago. Average revenue per user was $48, down from $51 a year ago.
The company ended the quarter with 33.2 million subscribers.