T-Mobile bleeds nearly half a million post-paid subscribers, profits drop

T-Mobile bleeds nearly half a million post-paid subscribers, profits drop
Troubled T-Mobile has just posted its financials for the third quarter of the year, and while net customers have grown by 160,000, the number of contract subscribers that matter most in terms of profits actually dropped by 492,000. Post-paid subscribers pay around twice as much as pre-paid.

The average revenue per user (ARPU) consequently fell to $42.78, down 7.4% on the year. If you still doubt that T-Mobile is the most affordable carrier this is the number to look at. In stark contrast, the average customer pays around $20 more each month on AT&T and Sprint.

Overall, T-Mobile’s profit stood at $1.2 billion, down 15.2% consecutively. That number, of course, is before depreciation and the $8.1 billion the carrier will spend on acquiring Metro PCS in one of the biggest mergers in the industry.

T-Mobile is hopeful, though, that its $4 billion investment in 4G will pay out in the future and the launch of T-Mo LTE is still on track for 2013.

source: T-Mobile

T-Mobile bleeds nearly half a million post-paid subscribers, profits drop

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21 Comments

1. lubba

Posts: 1313; Member since: Jan 17, 2011

LTE is the key for tmo's success, NOT!

2. jjjsong

Posts: 75; Member since: Dec 27, 2011

What about their pre-paid customers?

3. Mxyzptlk unregistered

Not having the iPhone is what's killing tmobile the most. It's the only major carrier without it and its showing with the ever decreasing customer base. It's the only logical explanation here.

4. remixfa

Posts: 14605; Member since: Dec 19, 2008

it doesnt have a decreasing customer base. try reading.

5. remixfa

Posts: 14605; Member since: Dec 19, 2008

Victor, can I ask you something? If a post paid subsriber pays $60 for unl everything and a prepaid subscriber pays $60 for unl everything how does the post paid subscriber pay double???? You guys just dont get it. Tmobile is moving to value and no contract and getting away from subsidies. The fact that they are "losing contracts" is MEANINGLESS if they are pushing prepaid and value. The fact that its ARPU is going down is a reflection of the move from Classic to Value/Prepaid. It's also MEANINGLESS. And considering most of the prepaid and value plans mirror each other in costs, I dont see how they are losing money. They are just not having to subsidize phones. Theyve been doing this for a few years now, why has no one been able to grasp it?? OI. Net customer grew by 160k. That's the headline.

15. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Poor remixfa.

16. remixfa

Posts: 14605; Member since: Dec 19, 2008

why poor me exactly?

21. solidsnakeduds013

Posts: 219; Member since: Oct 20, 2010

you know too much.

6. squeeb

Posts: 99; Member since: Dec 02, 2011

I'm a prepaid Tmo customer. I'll never go back to contract.

12. remixfa

Posts: 14605; Member since: Dec 19, 2008

darn skippy. especially as long as there are excellent choices like the nexus 4 out there at full retail for pretty much what you would pay on contract for a high end smartphone anyways.

7. gwhyte01

Posts: 44; Member since: Jul 09, 2008

Ppl are leaving tmobile, because they treat their current customers like s**t.

9. parkwaydr

Posts: 572; Member since: Sep 07, 2011

Not true, I've been on Verizon tmo and now sprint, tmo customer service is by far the best of the three, I left tmo for Sprint because of service issues, they were very weak in my area at the time, my brother is on tmo though and he says he has no problem what so ever now. Like Remix said, they are using more non contract plans now, so people are wrongly interpreting that they are losing customers, which is wrong.

10. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

I heard these stories about Tmobile. Honestly I can say they don't offer the best coverage. You get what you pay for, no dropped calls, just spotty or fickle coverage. However, I had to call the company three times: once to get service started, fixed, second Sim card problem, fixed, and thirdly coverage, work in Progress. During this period never had any rude customers rep, maybe just got lucky. Besides most can't speak English ;-)

13. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

T-Mobile has always had spotty coverage even in major metropolitan areas, I live in NYC so when my signal drops out for no reason then that means something is up. My gf has T Mobile and her connection goes a little nuts once in a while but it's still a great deal and pretty cheap. They aren't bad in customer service but just like the other guys have been caught cheating customers by adding extra charges on cell service, but they are good for what they offer and that is the bottom line. It works for you, use it, no point in getting expensive cell service when you are going to go broke doing so.

14. jenna_23

Posts: 145; Member since: Apr 02, 2010

i agree t-mobile does have spotty coverage in major metropolitan areas I live in los Angeles and travel to san francisco a lot and t - mobile is spotty in both places. It's funny because people talk bad about att but I have att and I know many people on att that have less problems on att with dropped calls and coverage than on t-mobile. Onlyy good things bout t-mobile like u said they offer good deals for cheap prices and like remixfa says they have fast data cuz u gotta admit there hspa is Prolly faster than atts 3G/4G but I rather have more coverage and less dropped calls that's why I have att . I gave t-mobile lots of chances got plenty of different phones with them gave up on them sure data was fast but I didn't get service on food for less n Macy's lol were s att always comes tru in all those places and in many more places were tmobile crapped out..

17. remixfa

Posts: 14605; Member since: Dec 19, 2008

its all relative. ATT's network isnt much bigger than Tmobile's network. I dont have any issues. I'm interning at a hospital on the other side of town that has a few connection issues when you middle of the building, but that's it. From looking around the only one that works everywhere in there is VZW. However at the last hospital I interned at last semester, it was the exact opposite.. I got full HSPA+ everywhere in the hospital and the VZW students had nothing at all. Its always relative. Its what works for you in your life.

18. jenna_23

Posts: 145; Member since: Apr 02, 2010

Yes like u said so t-mobile works for u at&t for me.

20. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

well said........

11. scorpio85

Posts: 160; Member since: Jan 16, 2010

Sad to see, but is this news really a surprise.....

19. cncrim

Posts: 1539; Member since: Aug 15, 2011

Holiday around corner why spend money when get great deal in a months or two.

22. Maxmicha

Posts: 2; Member since: Aug 16, 2012

The most widespread cause of T-Mobile bleeds is a circumstance called gingivitis. We sometimes have patients ask over us 'Is it usual for gums to T-Mobile bleeds sporadically? indigomultimedia.com

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