May 7th, 2009
Wireless churn wars: T-Mobile lags the pack
T-Mobile’s prepaid churn rate was 2.3 percent in the first quarter, dropping it to last place among the leading wireless carriers.
The churn rate, delivered in T-Mobile’s first quarter results, was quite a turnabout compared to a year ago when the wireless carrier came in with a rate of 1.7 percent.
With all the wireless carrier earnings complete here is a look the churn standings (based on prepaid accounts):
- Verizon Wireless: 1.14 percent
- AT&T: 1.2 percent
- Sprint: 2.25 percent
- T-Mobile: 2.3 percent
In a statement, T-Mobile said its churn rate increase was “impacted by competitive intensity.” Translation: Any bump that T-Mobile received from devices like the G1 has evaporated.
T-Mobile still managed to add 415,000 net customers in the quarter. The company argues that it is aggressively rolling out its 3G network and lining up devices to attract more customers.
Total revenue for T-Mobile was $5.4 billion in the first quarter, up from $5.19 billion a year ago. Net income in the quarter was $322 million, down from $462 million a year ago. Average revenue per user was $48, down from $51 a year ago.
The company ended the quarter with 33.2 million subscribers.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
For daily updates, follow Larry on Twitter.
Subscribe to Between the Lines via Email alerts or RSS.
