Telecom Lead America: T-Mobile USA’s Capex (capital expenditure) has reached $1.1 billion in the first quarter of 2013.
The telecom operator’s main Capex was towards achieving 200 million covered pops with 4G LTE by the end of 2013.
In the first quarter of 2013, T-Mobile USA launched 4G / LTE in 7 major metropolitan areas and modernized approximately 16,000 sites with HSPA+ on 1900 MHz spectrum.
T-Mobile USA expects to meet the goal of 100 million covered pops by mid-2013. It is also planning to deliver on the goal of 200 million covered pops by the end of 2013.
Deployment of HSPA+ on 1900 MHz spectrum already exceeds the mid-2013 target of 170 million covered pops, and is well on track for 200 million pops covered by the end of 2013.
Approximately 16,000 cell sites have been modernized under the Network Modernization program in less than 10 months. T-Mobile has coverage of more than 300 million pops (including roaming) and 4G coverage of 228 million pops (HSPA+ 42 and 21 Mbps).
Meanwhile, T-Mobile USA on Wednesday said its service revenue declined 9.9 percent.
The decrease in revenue does not reflect the operator’s Un-carrier value proposition announced on March 26, 2013. T-Mobile USA launched the Un-carrier value proposition by introducing Simple Choice service plan and providing customers with the lowest out-of-pocket costs on devices.
The dip in service revenue was partially offset by increases in equipment revenue, resulting in total revenues declining 7.1 percent.
On April 12, 2013, T-Mobile USA began selling the iPhone at all company-owned stores in combination with the new Simple Choice service plan. To date the company has sold approximately 500,000 iPhone5’s to new and existing customers.
Branded postpaid ARPU decreased 6.3 percent to $54.07 partially reflecting increased adoption of Value Plans, while branded prepaid ARPU increased by 11.3 percent to $28.25 due to T-Mobile USA’s monthly prepaid plans.
T-Mobile USA reported 3,000 branded net customer additions for the quarter, resulting from a 61 percent year-over-year improvement in branded postpaid net customer losses due primarily to improved branded postpaid churn performance, combined with branded prepaid customer growth.
Adjusted EBITDA decreased by 7.5 percent primarily due to service revenue declines.
