T-Mobile USA Cites iPhone for Customer Defections, LTE Planned for 2013

As of the end of Q4 2011, T-Mobile USA had 33.2 million customers, down from 33.7 million customers at both the end of third quarter 2011 and the end of fourth quarter 2010. Net customer losses of 526,000 compared to net customer additions of 126,000 in the third quarter of 2011, and net customer losses of 23,000 in the fourth quarter of 2010.


Service revenues were $4.57 billion in the fourth quarter of 2011, down from $4.67 billion in the third quarter of 2011 and $4.69 billion in the fourth quarter of 2010. T-Mobile USA reported Adjusted OIBDA was $1.40 billion in the fourth quarter of 2011, compared to $1.45 billion in the third quarter of 2011 and $1.34 billion in the fourth quarter of 2010.


Blended ARPU in the fourth quarter of 2011 was $46, consistent with the fourth quarter of 2010.


"In 2011, T-Mobile USA showed solid financial performance with a remarkable adjusted OIBDA turn-around in the second half of the year, despite nine challenging months during the pending acquisition. We further increased our 4G data speed to 42 Mbps, expanded our sales channels, launched 25 new 4G handsets and significantly improved our operational efficiency. As a result, adjusted OIBDA rose again year-on-year in the fourth quarter of 2011 and branded data ARPU grew 20 percent year-on-year as smartphone adoption accelerated,�? said Philipp Humm CEO and President of T-Mobile USA. "However, not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011. In 2012 and 2013, T-Mobile USA will invest to get the business back to growth, including an incremental $1.4 billion investment in its network modernization initiative, which will total a $4 billion investment over time."


Specifically, starting in 2013, T-Mobile USA will use spectrum it obtained through the failed AT&T merger, along with refarmed frequencies, to launch LTE services. The $1.4 billion in incremental CAPEX will support this initiative.


Cash capital expenditures in Q4 2011 were $551 million, compared to $741 million in the third quarter of 2011 and $828 million in the fourth quarter of 2010. CAPEX during 2011 were driven by the continued build-out of the HSPA+ 21 and HSPA+ 42 networks.http://newsroom.t-mobile.com/