T-Mobile USA Adds 415K Mobile Customers, But Revenue Falls

In the first quarter of 2009, T-Mobile USA added 415,000 net new customers, down from 621,000 in the fourth quarter of 2008 and 981,000 in the first quarter of 2008.


Service revenues were $4.77 billion, compared to $4.90 billion in the fourth quarter of 2008, and up from $4.57 billion in the first quarter of 2008. The sequential decrease in service revenues in the first quarter of 2009 compared to the fourth quarter of 2008 was primarily due to the fall in contract ARPU.


Blended Average Revenue Per User was $48 in the first quarter of 2009, compared to $50 in the fourth quarter of 2008 and $51 in the first quarter of 2008. Contract ARPU was $52 in the first quarter of 2009, down from $54 in the fourth quarter of 2008 and $55 in the first quarter of 2008. The decrease in contract ARPU sequentially and year-over-year was driven by lower variable revenues from contract customers as customers control their discretionary spending, for example by switching plans and incurring less roaming. Also, contract ARPU was impacted by monthly recurring charges per customer decreasing due to a change in the mix of the customer base. Prepaid ARPU was $21 in the first quarter of 2009, down from $23 in the fourth quarter of 2008 and $22 in the first quarter of 2008. Data services revenue was $935 million in the first quarter of 2009, representing 19.6% of blended ARPU, or $9.40 per customer, up from 18.5% of blended ARPU, or $9.30 per customer in the fourth quarter of 2008, and 16.6% of blended ARPU, or $8.50 per customer in the first quarter of 2008. Data services revenue increased 23% in the first quarter of 2009 versus the first quarter of 2008.


"The challenges of the U.S. economic downturn are evident in our first quarter performance," said Robert Dotson, president and CEO, T-Mobile USA. "That said, we remain confident that T-Mobile's bedrock wireless service remains the core value we offer American consumers backed by the best customer service in the industry. We will continue to bring this value to consumers every day. We remain on track with the aggressive national rollout of our 3G network in 2009. We'll also bring to market highly anticipated new devices and services that put us in a stronger position to capture the enormous opportunity in data services in the U.S. By concentrating and delivering on these growth fundamentals, we are well positioned to compete effectively for the consumers' hard-earned dollar."http://www.T-Mobile.com