T-Mobile
reported service revenues of $4.6 billion in the second quarter of 2011,
consistent with service revenues in the first quarter of 2011, and adjusted
OIBDA of $1.3 billion, up from $1.2 billion reported in the first quarter of
2011.

 

The
number of Americans covered by its 4G network and the number of customers using
3G/4G smartphones both continued to increase significantly during the quarter, driving
growth in data ARPU.

 

Additionally,
net customer losses were 50,000 in the second quarter of 2011, nearly a 50
percent improvement from the 99,000 net customer losses in the first quarter of
2011.

 

In a
challenging market, we are seeing some encouraging trends in the quarter,
particularly with our prepaid product growth and our year-on-year contract ARPU
increase, thanks to all-time high of 29percent of our customer base using 3G/4G
smartphones. While contract churn continues to be high, we are focused on
upgrading our customers to higher quality products and concentrating on
retaining our loyal customers,” said Philipp Humm, president and CEO of
T-Mobile USA.

 

We
also continue to focus on customer value through further network upgrades where
we now reach more than 170 million Americans with even faster speeds, through
our large 4G Android device portfolio, and by offering affordable unlimited
rate plans,” Humm added.

 

“The
United States remains a difficult market for Deutsche Telekom, but we see improvements
compared to the first quarter of 2011. T-Mobile USA will continue its strategy
with the extended HSPA+ 42 coverage and continued data growth,” said René
Obermann, CEO of Deutsche Telekom.

 

T-Mobile USA
served 33.6 million customers at the end of the second quarter of 2011,
generally consistent with the first quarter of 2011 and the second quarter of
2010.

 

In the
second quarter of 2011, net customer losses were 50,000, compared to net losses
of 99,000 in the first quarter of 2011 and 93,000 in the second quarter of
2010.

 

Contract
net customer losses were 281,000 in the second quarter of 2011, an improvement
of 26 percent from the 382,000 net contract customer losses in the first
quarter of 2011, but a decline from the 106,000 net contract customer additions
in the second quarter of 2010.

 

Prepaid
net customer additions, including MVNO customers  were 231,000 in the
second quarter of 2011, down 18 percent compared to 283,000 in the first
quarter of 2011 and up substantially from the 199,000 net losses in the second
quarter of 2010.

 

Blended
churn reflecting both contract and prepaid customers, decreased to 3.3percent
in the second quarter of 2011 from 3.4 percent in both the first quarter of
2011 and the second quarter of 2010.

 

T-Mobile
USA reported adjusted OIBDA (as defined in Note 8 to the Selected Data, below)
of $1.3 billion in the second quarter of 2011, compared to $1.2 billion in the
first quarter of 2011 and $1.4 billion in the second quarter of 2010.

 

Net
income in the second quarter of 2011 was $212 million, up 57 percent when
compared to $135 million in the first quarter of 2011 and down 48 percent from
the $404 million reported in the second quarter of 2010.

 

Service
revenues were $4.6 billion in the second quarter of 2011, consistent with $4.6
billion in the first quarter of 2011 and down 1.7 percent from $4.7 billion in
the second quarter of 2010.

 

Total
revenues, including service, equipment, and other revenues were $5.1 billion in
the second quarter of 2011, down from $5.2 billion in the first quarter of 2011
and $5.4 billion in the second quarter of 2010.

 

Blended
Average Revenue Per User was $46 in the second quarter of 2011, consistent with
the first quarter of 2011, but lower than $47 in the second quarter of 2010
driven by a shift in the customer base towards prepaid plans.

 

The
average cost of acquiring a customer, Cost Per Gross Add ( CPGA” as defined in
Note 7 to the Selected Data, below) was $320 in the second quarter of 2011, up
from $300 in the first quarter of 2011, but down from $330 in the second
quarter of 2010.

 

The
average cash cost of serving customers, Cash Cost Per User ( CCP”” as defined
in Note 6 to the Selected Data, below), was $23 per customer per month in the
second quarter of 2011, down from $25 in the first quarter of 2011 and
consistent with the second quarter of 2010.

 

Cash
capital expenditures were $688 million in the second quarter of 2011, compared
to $749 million in the first quarter of 2011 and $682 million in the second
quarter of 2010.

 

By
Telecomlead.com Team
[email protected]