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Adding their success to the recent spate of well-performing US carriers, T-Mobile USA have released their Q4 2007 statistics and, while they’re promising financial figures will come at the end of February, they’ve been pretty keen to boast about their “year on year growth”, 951,000 net new subscribers in the quarter and contract churn reduced to 1.8-percent (although not beating Verizon Wireless‘ 1.2-percent).
Compared to Q4 2006, contract churn was down from 2.1-percent and blended churn (consisting of both contract and prepay customers) down from 2.9-percent. In total, T-Mobile added over 3.6 million net new customers in 2007, compared to 3.4 million in 2006.
Much of the success is being accredited to the myFavesSM service, with five million customers using it by year-end, as well as FlexPaySM.
Full Press Release:
T-MOBILE USA REPORTS 28.7 MILLION CUSTOMERS AT THE END OF 2007
- 951,000 net new customers in the fourth quarter of 2007, up from 901,000 in the fourth quarter of 2006
- 733,000 net new contract customers in the fourth quarter of 2007
- Over 3.6 million net new customers added in 2007, up from 3.4 million in 2006
- Contract churn reduced to 1.8% in the fourth quarter of 2007, from 2.1% in the fourth quarter of 2006
Bellevue, January 28, 2008 — T-Mobile USA, Inc. (“T-Mobile USA“), the U.S. operation of Deutsche Telekom AG’s (“Deutsche Telekom“ (NYSE: DT)) Mobile Communications business, today announced fourth quarter and full year 2007 customer results.
“T-Mobile continues to drive year-over-year growth by pioneering innovation that matters to consumers,” said Robert Dotson, CEO and President, T-Mobile USA. “In 2007, we increased growth to over 3.6 million net new customers. myFavesSM was a major contributor to this growth, with 5 million customers at year-end using the service to make unlimited calls to the people who matter most to them. Part of this growth was also fueled by the debut of FlexPaySM, a new option in the market that opens up access to more attractive offerings for certain classes of customers. In 2007, we also introduced our revolutionary HotSpot @HomeSM service to rave reviews for how we’re opening up new value alternatives for land line customers – all while we add outstanding call quality improvements in homes across America.”
In the fourth quarter of 2007, T-Mobile USA added 951,000 net new customers compared to 857,000 in the third quarter of 2007 and 901,000 in the fourth quarter of 2006. Net new contract customer additions amounted to 733,000 in the fourth quarter of 2007, or 77% of total net new customer additions, compared to 557,000 or 65% in the third quarter of 2007 and 783,000 or 87% in the fourth quarter of 2006. Contract churn was 1.8% in the fourth quarter of 2007, down from 2.0% in the third quarter of 2007 and 2.1% in the fourth quarter of 2006. Blended churn, including both contract and prepay customers, was 2.8% in the fourth quarter of 2007 and down from 2.9% in the third quarter of 2007 and fourth quarter of 2006.
T-Mobile USA’s converged device offering was significantly strengthened during the year with the successful launch of a number of converged devices such as the T-Mobile Shadow, the T-Mobile Sidekick iD, LX, and Slide, T-Mobile Wing, and the BlackBerry Curve – the first converged device enabled for the new HotSpot @Home service. The fourth quarter of 2007 saw a continued strong demand for these converged devices.
For the year ended December 31, 2007, T-Mobile USA added more than 3.6 million net new customers, compared to 3.4 million net new customers added in 2006. Net contract customer additions in 2007 amounted to 2.7 million, 74% of the total customer additions in the year – down from 83% in 2006. Contract customers comprised 83% of T-Mobile USA’s 28.7 million customer base at the end of 2007, compared to 84% in the third quarter of 2007 and 85% in the fourth quarter of 2006.
T-Mobile USA will release fourth quarter and full-year 2007 financial results on February 28, 2008.
SELECTED DATA FOR T-MOBILE USA
- The covered population statistic represents T-Mobile USA’s GSM / GPRS / EDGE 1900 voice and data network coverage, combined with roaming and other agreements.
