T-Mobile Sees Earnings Plunge, Loses 500K Subscribers
February 28, 2013 12:58 PM
comment(s) - last by
Company brags about its "momentum", but financials suggest otherwise
In its Q4 2012
Deutsche Telekom AG's (
) 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.
continues to be a strong point for T-Mobile, much like Sprint Nextel Corp. (
), but the addition of 166,000 prepaid customers in Q4 was not enough to stop the revenue bleed from defecting contract customers.
One factor that may help T-Mobile is its pickup of the Apple, Inc. (
) 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.
This article is over a month old, voting and posting comments is disabled
Why no one makes 1700Mhz chip
3/1/2013 12:21:09 PM
I wonder why it's so hard to integrate 1700MHz into communication chip in the past for chip makers, even now. I think it's the major problem that T-Mobile keeps losing customers, since it lacks the phones that people wants, especially iPhone.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
T-Mobile Set to Launch GoSmart Mobile Prepaid Service in February
January 31, 2013, 9:59 AM
T-Mobile Offering iPhones, Cutting Cell Phone Subsidies in 3-4 Months
January 9, 2013, 12:57 PM
T-Mobile USA Reports Q3 2012 Operating Results
November 8, 2012, 10:22 AM
Deutsche Telecom to Partially Acquire, Merge MetroPCS w/ T-Mobile USA
October 3, 2012, 11:45 AM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information