T-Mobile USA's sales increase, but new subscribers slow |
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T-Mobile USA's sales increase, but new subscribers slow
T-Mobile USA announced solid fourth quarter results, with the Bellevue wireless carrier posting double digit increases in operating income and service revenue. The unit of Deutsche Telekom reported operating income of $1.5 billion, up 18 percent over the same period in 2007. Meanwhile, service revenue increased 12 percent to $4.9 billion, a significant increase even though new customer additions are slowing.
"As the U.S. business continues to ramp up its rollout of nationwide 3G services, we are excited by the growth opportunities opening up for us in mobile communications data services," said René Obermann, CEO of Deutsche Telekom, "Today, we are just scratching the surface when it comes to seizing the opportunities available to us in the U.S. market for data and related communications services.”
Still, the number of new customers signing up for T-Mobile service is slowing. Last quarter, the company added 621,000 net new subscribers, which compared to 951,000 for the same period in 2007. Contract churn also increased to 2.4 percent during the fourth quarter. More on the results from RCR Wireless.
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