T-Mobile Capex in 2013 to touch $4.4 billion

American telecom operator T-Mobile on Tuesday said its capital spending (Capex) will be around $4.2 billion to $4.4 billion in 2013.

The capital expenditure for the third quarter of 2013 was $1.0 billion. Network modernization was its main focus area, said T-Mobile.

T-Mobile, which started on Un-carrier approach to improve customer base that touched 45 million users now, said its network modernization program and Un-carrier strategy contributed to low postpaid churn rate of approximately 1.7 percent for the third quarter, up slightly from the second quarter of 2013.

The ongoing Un-carrier strategy has assisted T-Mobile to report more than 1 million net customer additions with 672,000 net customer additions, including postpaid net additions of 648,000 and prepaid net additions of 24,000.

John Legere, president and CEO of T-Mobile, said MetroPCS brand will b expanded into another 15 additional markets by November 21.

T-Mobile third quarter revenues increased 7.4 percent quarter-over-quarter primarily due to the inclusion of MetroPCS results for the full quarter and higher equipment revenues due to record smartphone sales.

Service revenues for the third quarter grew 8.0 percent quarter-over-quarter primarily due to growth of the company’s subscriber base and the inclusion of MetroPCS results.

Postpaid ARPU decreased quarter-over-quarter by $1.40 to $52.20, primarily as a result of the rapid adoption of Value and Simple Choice plans, which deliver lower ARPU due to lower service charges compared to traditional plans bundled with a discounted handset.

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