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ChannelPartnersOnline.com: T-Mobile USA Q1 2011 = 372,000 prepaid additions, 471,000 contract losses

May 7, 2011

Here’s the only quote you need from the article below:
Although T-Mobile USA reported 372,000 prepaid additions, the company lost 471,000 customers on contract, triple the number in the period a year ago (118,000). T-Mobile has lost 789,000 customers on contract over the last two quarters.”

T-Mobile USA said, “The year-on-year increase in contract churn was driven by continued competitive pressures in the US wireless industry,” but I’m sorry, people are not fleeing contract because of “competitive pressures,” they’re fleeing to MUCH LOWER PRICED PREPAID PLANS!  This is crystal-clear, but the Corp. guys won’t admit it.  Because T-Mobile is being swallowed by AT&T, their numbers are worse than the other big boys, but the trend is still obvious.  Red highlights and bolding are mine.
JC


http://www.channelpartnersonline.com/news/2011/05/t-mobile-usa-loses-nearly-100-000-subscribers.aspx

T-Mobile USA Loses Nearly 100,000 Subscribers
May 6, 2011

T-Mobile USA, the mobile operator that is planning to merge with AT&T, continues to struggle after losing nearly 100,000 subscribers in the first quarter.

T-Mobile USA lost 99,000 customers, more than triple the number of losses in the fourth quarter of 2010 (23,000).

But the company’s parent, Deutsche Telekom of Germany, vowed to continue fighting until AT&T acquires the fourth-largest U.S. mobile operator.

“Our deal with AT&T … will not change the focus of our US business,” said Rene Obermann, CEO of Deutsche Telekom. “Until the closing of the deal, T-Mobile will continue to challenge its competitors and compete aggressively in the US market.”

Bellevue, Wash.-based T-Mobile now serves 33.63 million customers, down from 33.71 million subscribers a year ago.

Although T-Mobile USA reported 372,000 prepaid additions, the company lost 471,000 customers on contract, triple the number in the period a year ago (118,000). T-Mobile has lost 789,000 customers on contract over the last two quarters.

Contract churn improved sequentially to 2.4 percent from 2.5 percent in the fourth quarter of 2010, but customer turnover was significantly higher than in the period a year ago (2.2 percent).

“The year-on-year increase in contract churn was driven by continued competitive pressures in the US wireless industry,” T-Mobile USA said.

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