T-Mobile USA revenue declines 3.4% in 2011 to $20.61 billion

By Telecom Lead Team: T-Mobile USA total income decreased
3.4 percent to $20.61 billion in 2011from $21.34 billion in 2010.

 

Its Q4 2011 revenues are down 3.4 percent to $5.17
billion against $5.36 billion in Q4 2010.

 

Decline was due to branded contract customer losses and
revenue effects from the shift to unlimited Value plans.

 

The company’s cash capital expenditures stood at $2.7
billion in 2011, against $2.8 billion in 2010. For Q4 2011, cash capital
expenditures were $551 million, against $741 million in Q3 2011 and $828
million in the Q4 2010.

 

Blended ARPU in Q411 was $46, consistent with Q4 2010.

 

The company’s net customer losses were 526,000 in Q4
2011, compared to 23,000 net customer losses in Q4 2010. Branded contract
losses improved through the third quarter of 2011 with 220,000 prepaid
additions of in Q4 2011.

 

Branded contract ARPU increased $2 year-on-year to $58 in
Q4 2011, mainly driven by an increase in data ARPU. Branded Data ARPU increased
$2.70 year-on-year to $16.50 in Q4 2011.

 

The number of 3G/4G smartphones sold by the teleco in Q4
2011 increased to 2.6 million from 1.8 million in Q3 2011 and 2.1 million in Q4
2010.

 

3G/4G smartphones also accounted for a record 92 percent
of equipment sales in Q4 2011 compared to 77 percent in both Q3 2011 and Q4
2010.

 

T-Mobile USA served 33.2 million customers at the
end of fourth quarter 2011, compared to 33.7 million customers at both the end
of third quarter 2011.

 

In 2011, T-Mobile USA showed solid financial performance
with a remarkable adjusted OIBDA turn-around in the second half of the year,
despite nine challenging months during the pending acquisition,” said Philipp
Humm CEO and president of T-Mobile USA.

 

Though we are not satisfied with the contract customer
losses and the decreased total revenues, the quarterly margin improvement
year-on-year was impressive. The spectrum gained through the break-up fee
empowers T-Mobile USA to start LTE-based services in key US markets and
strengthens its competitiveness,” said Rene Obermann, CEO of Deutsche Telekom.

 

On December 20, 2011 T-Mobile USA’s proposed sale to
AT&T was terminated. The company said that due to the termination of the
sale near year-end, T-Mobile USA’s annual impairment assessment of
indefinite-lived assets is still ongoing.

 

editor@telecomlead.com

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