T-Mobile reports lower net income for fourth quarter
Part of the reason for the drop in earnings despite customer additions was the drop in contract Average Revenue Per User (ARPU) to $51 per month. That compares with the $52 monthly average for the third quarter and the $54 average for the 2008 period. Another reason for the earnings decline was the increase in the cost of acquiring a customer to $300 from $290 in the previous three month period and $270 a year ago. René Obermann, CEO of T-Mobile USA's parent company, Deutsche Telekom, said, "T-Mobile USA made significant progress in 2009 in expanding its 3G network, improving its 3G-capable device lineup, enhancing its distribution, and underscoring its value proposition. This creates a solid foundation to benefit from the robust mobile Internet market." The next earnings report will be the first to include any impact from the Nexus One. While Google is selling the handset on its web site, right now service is provided by only T-Mobile. On March 24th, the carrier is expected to launch the sizzling hot HTC HD2 which won't have any major impact until the company's second quarter report.
HTC Nexus One Specifications | Review
HTC HD2 US Specifications | Review (European)
1. Homotechual (Posts: 65; Member since: 27 Oct 2009)
Good for T-Mobile, Now watch that number double every year with the improvments T-Mobile is making with their handsets, and coverage. What the article FAILS to notice is OBVIOUSLY T-Mobile is going to lose contract customers, not because their lower income customers, because they have NO CONTRACT plans now. Most the customers switching from AT&T and Verizon I switch at T-Mobile are going on the Even More PLUS plans. Meaning NO CONTRACT*
2. herbiederb (Posts: 275; Member since: 28 Jan 2010)
Agreed. +1 I will be a new T-Mo customer on March 24th... SOLD!
3. remixfa (Posts: 13901; Member since: 19 Dec 2008)
id say 95% of new customers are no contract. That doesnt mean they are bad credit prepays (of course, we still have those too), but the cost benifit of going no contract far outweighs getting a contract plan, even with the full price phones included. I only ever pull out the contract plan card just to show how much they really save by going even more plus (no contract). whoever wrote this article needs to keep up with the times. Yea the ARPU went down a bit because the new plans are uber cheap. And in a time of 10%+ unemployment and job uncertanty, those super cheap no contract plans are starting to appeal to a huge audience... and not just to the metro users. I dunno about you but weve been like 150% to quota every month since EMP came out. the true "fastest 3g network", nationwide coverage on par(or better than) ATT, no contracts, kickass phones, and cheap as hell plans... how can u go wrong? LOL.
6. theman10 (Posts: 93; Member since: 16 May 2009)
That was such a dumb comment, full of inaccuracies and lies
4. rwolf1984 (Posts: 518; Member since: 06 Jun 2009)
T-Mo and Sprint need to be careful with their no contract option. Falling profit and income isnt good...I am not worried so much about T-Mo cuz if T-Mo in Europe wanted to make the investment in T-Mo USA they could be the #1 carrier. @ Remixfa T-Mo is not the fastest. AT&T and Sprint are according to PC World survey...
8. remixfa (Posts: 13901; Member since: 19 Dec 2008)
yea, and according to that, they didnt test in Philladelphia where tmobile is running its new HSPA+ network at 21mbps. Which is also where they reviewed the new Web connect Rocket Internet card and said its faster than sprints WiMax in real world usage. ATT's max is 7.2mb/s, Sprint and Verizon's max is about 3mb/s, Tmobiles Max is 21mb/s. (ATT's max and Tmobiles Max are not nationwide) Easy math. And.. theman.. can you point out all the "lies and inaccuracies" with some factual evidence? :)
5. Homotechual (Posts: 65; Member since: 27 Oct 2009)
I don't look at PC WORLD, I look at Consumer Reports and T-Mobile was ranked #2 based off of an overall score beatng AT&T and Sprint.
7. arleslie (Posts: 2; Member since: 14 Feb 2010)
Tmobile's no contact plans appeals to the general consumers, they still have the best phones,plans, and the best representatives. Based on my experience, they cater to everybody's needs whether its pre, flexpay and post pay. Coverage has been an issue sometimes, but would not trade carriers even for an iphone.
9. mattkl (Posts: 124; Member since: 01 Feb 2010)
Well the fact that T-Mobile tends to be getting the more appealing phones leads me to believe the phone manufactures know something we don't. Never forget that businesses are out to make money and if they see something good or know of a way to make money they will. I am curious to see HSPA come out nation wide from T-Mobile and test it out. They were so behind with 3G I bet they won't make that mistake again with their HSPA.