T-Mobile Q1’11 Results Show Positive Revenue, But No Signs of Growth
T-Mobile’s Q1’11 financial results have finally been publicized. They raked in nearly $4.63 billion in service revenues, but – as one would imagine – lost some customers. 99,000 net customers were lost. To be specific, 471,000 contract customers opted not to renew their contracts, but they did manage to get 371,000 additions through prepaid channels and wholesale.
That brings their total of customers to 33.63 million, which is actually 100,000 customers less than what they had in the same quarter last year. T-Mobile’s clearly struggling to grow which explains – you guessed it – Deutsche Telekom’s desire and need to sell it to AT&T. T-Mobile looked to hush questions about AT&T’s impact on T-Mobile’s business model with the following quote:
“We continue to drive our strategy and lay the foundation for improved future performance and have seen some positive trends in the quarter as evidenced through data ARPU growth rates,” said Philipp Humm, President and CEO of T-Mobile USA. “The success in our data business has been driven by our 4G network message, our compelling 4G device offerings and our attractive data plans; however, we still have challenges facing our business as evidenced by high contract churn and contract customer losses in the first quarter of 2011.”
T-Mobile certainly has been operating as if it were its own company (because they are) with several high profile device launches having just taken place at the end of last month and with new devices announced to be headed our way soon such as the HTC Sensation and HTC Flyer. The company fully understands that the proposed merger of AT&T and T-Mobile may very well be rejected by the FCC. [via Yahoo]