whopping 117% sequentially from the third quarter of 2012. At 3.6%, churn was .10% lower than the rate in the third quarter of 2012 and the fourth quarter of 2011. EBITDA, a measure of cash flow, was $307 million in the fourth quarter with EBITDA margin of 27.9%. At $40.86, the average monthly revenue per user was up 31 cents from the previous year. During the period, 75% of customers upgrading moved to an LTE service plan. Net income for the fourth quarter was 9 cents a share, down from 25 cents a share in 2011.
For the full year, operating income was up 10% to $824 million while EBITDA set a record at $1.5 billion for a 14% gain. EBITDA margins weighed in at 33.3%, up from 30.2% last year. At 3.4%, annual churn was the lowest in MetroPCS history, and represented a .40% drop from last year. The company now serves 8.9 billion subscribers with an average revenue per user of $40.63 for the year, up 6 cents from 2011. Net income rose from 82 cents a share to $1.07 a share.
MetroPCS stockholders will vote March 28th on its reverse merger with T-Mobile. If the deal closes, shareholders will receive $4.09 for each share and they will own 26% of the new company.