T-Mobile USA (http://www.t-mobile.com) has announced earnings results for the fourth quarter of 2011, revealing a net loss of over 800,000 contract subscribers during the quarter. And it says the lack of an iPhone is part of the problem.
“In 2011, T-Mobile USA showed solid financial performance with a remarkable adjusted OIBDA turn-around in the second half of the year, despite nine challenging months during the pending acquisition. We further increased our 4G data speed to 42 Mbps, expanded our sales channels, launched 25 new 4G handsets and significantly improved our operational efficiency. As a result, adjusted OIBDA rose again year-on-year in the fourth quarter of 2011 and branded data ARPU grew 20 percent year-on-year as smartphone adoption accelerated,” says CEO Philipp Humm. “However, not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011. In 2012 and 2013, T-Mobile USA will invest to get the business back to growth, including an incremental $1.4 billion investment in its network modernization initiative, which will total a $4 billion investment over time.”
T-Mobile is the only major U.S. telecom not carrying the Apple smartphone. In the fourth quarter of 2011, the company reported service revenues of US$4.57 billion, down from $4.69 billion in the fourth quarter of 2010. Additionally, net customer losses were 526,000 in the fourth quarter of 2011, compared to 23,000 net customer losses in the fourth quarter of 2010.