backtop


Print

Company brags about its "momentum", but financials suggest otherwise

In its Q4 2012 earnings report Deutsche Telekom AG's (ETR:DTE) T-Mobile USA brags, "As T-Mobile USA, Inc. (“T-Mobile”) closed out its fourth quarter, the Company continued to generate business momentum by executing its Challenger strategy, while laying the groundwork for its unique ‘Un-carrier’ initiatives aimed at changing the rules of wireless."

But for all the talk of "changing the rules" and gaining "momentum", the actual numbers continue to look pretty grim.  For the quarter T-Mobile USA lost 515,000 contract customers.  Operating income (OBIDA) fell to $1B USD, down 25 percent from a year ago.  Total revenue fell from $5.2B USD in Q4 2011 to $4.9B USD.

Prepaid continues to be a strong point for T-Mobile, much like Sprint Nextel Corp. (S), but the addition of 166,000 prepaid customers in Q4 was not enough to stop the revenue bleed from defecting contract customers.

T-Mobile plane
[Image Source: Juergen Lehle]

One factor that may help T-Mobile is its pickup of the Apple, Inc. (AAPL) iPhone.  Some customers may be attracted to the prospect of the Apple device on T-Mobile's lower priced plans.

T-Mobile says that its merger with MetroPCS should be wrapped up in April.  The company can only hope that the merger with the more-successful budget carrier will provide it the spark it so desperately needs.

One big issue for T-Mobile is its lack of LTE.  Like Sprint, T-Mobile is stuck playing catch-up with respect to true 4G.  The company says it is "accelerating" its deployment and will cover 100 million Americans with LTE by "mid-2013".  It plans to cover 200 million Americans with LTE by the end of the year.

Source: T-Mobile





"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone



Latest Headlines
How Apple watch Series 2 differ from the S1
February 18, 2017, 5:37 AM
Chuwi LapBook
February 6, 2017, 6:49 AM
LG Watch Style
February 5, 2017, 8:00 AM
New iMac and Release Date
February 4, 2017, 9:30 AM




Latest Blog Posts
Around the World
Saimin Nidarson - Feb 18, 2017, 5:48 AM
News of Future
Saimin Nidarson - Feb 17, 2017, 6:30 AM
Some News
Saimin Nidarson - Feb 14, 2017, 5:36 AM
What's New?
Saimin Nidarson - Feb 10, 2017, 6:15 AM
Unleashed News
Saimin Nidarson - Feb 9, 2017, 6:00 AM
Eye catching news
Saimin Nidarson - Feb 8, 2017, 6:16 AM
Some World News
Saimin Nidarson - Feb 7, 2017, 6:15 AM
Today’s news
Saimin Nidarson - Feb 6, 2017, 10:11 AM
Some News
Saimin Nidarson - Feb 5, 2017, 7:27 AM
Notes and News
Saimin Nidarson - Feb 4, 2017, 5:53 AM
World News
Saimin Nidarson - Feb 3, 2017, 5:30 AM
Gadget News
Saimin Nidarson - Feb 2, 2017, 7:00 AM
News Around The World.
Saimin Nidarson - Feb 1, 2017, 7:20 AM
Some News
Saimin Nidarson - Jan 31, 2017, 7:57 AM
Tips of Today
Saimin Nidarson - Jan 30, 2017, 6:53 AM
What is new?
Saimin Nidarson - Jan 29, 2017, 6:26 AM






botimage
Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki