T-Mobile reports disappointing Q3 results

Last but not least, we take a look at T-Mobile's third quarter earnings. Step up to the plate, T-Mobile, it's your turn!

In the third quarter, the nation's fourth largest wireless carrier lost 77,000 net retail wireless customers, a dramatic turn from the 670,000 additions in the same quarter last year and the 325,000 in the second quarter. T-Mobile lost a total of 140,000 postpaid subscribers in the quarter, and gained 63,000 prepaid subscribers in the same time period (hence the 77,000 number you see above). T-Mobile's ARPU (average revenue per user) was at $47 in the third quarter, down from $48 in the prior quarter and $52 in Q3 of 2008. Churn hovered at 2.4 percent, higher than the 2.2 percent reported in the second quarter of 2009 and flat when compared to the same timeframe last year. Data ARPU sat at $10 for the third quarter; an increase from $9.90 in the previous quarter and $8.90 in Q3 of 2008. The carrier had 32.14 million subscribers at the end of September.

T-Mobile blames the subscriber losses on fewer gross adds and more churn as a result of the FlexPay program, which allows those with credit-challenged backgrounds to obtain a wireless device on a two-year agreement. One thing is universal across all of the financial reports released in the past few weeks, however: data revenue is going up. As subscribers turn to smartphones and other data-centric devices, carriers are reaping the benefits, and it shows on paper.

Via: FierceWireless

Comments & Opinions

mjr328 @ Nov 9, 09 9:23 AM

they have crumby phones!....sorry but its the truth. I was a tmobile customer for over 10 years and FINALLY saw the light and switched over to AT&T.....better coverage and most of all Much Better quality phones that are not locked from adding apps...i finally have a phone with mini opera loaded on and a company that LET me download it!!!!!!

Spam

cherkol @ Nov 8, 09 10:01 AM

i had sprint, verizon, and now im on tmobile.. i like them all but its all about preference...

rhomaion @ Nov 7, 09 9:48 AM

I'm sorry are you talking to me warlord1967 because I pay a $250+ Verizon cell phone bill.

wtfeman@gmail.com @ Nov 7, 09 2:17 PM

You Should switch to Sprint they have the same great service, better phones and cheaper prices, I recently made the switch from Verizon to Sprint and I am glad i did. I save money and i have a better phone with Excellent service. I used the Everything Plus Referral Program from Sprint and i save more. If you need the login for the EPRP from Sprint search it on Google. Goodluck ;)

amalgamation25 @ Nov 7, 09 8:55 AM

I've been with T-Mobile for years now, and never had any problems with anything.

Dyrkis @ Nov 6, 09 9:24 PM

Yeah i think ill stick with tmobile and skip the 350 dollar cancellation fee from verizon thats how you make money smart move verizon

Deanwrd @ Nov 6, 09 9:24 PM

Their service has dipped and suffered lately. I used to think they had the best customer service around. The lack of dealing with customers with honest complaints and concerns is a big reason for their losses. I recently switched from T-Mobile to AT&T. I could and still would have dealt with coverage issues if they dealt with my concerns a little more readily.

rhomaion @ Nov 6, 09 9:58 PM

That's the same reason I left them.

warlord1967 @ Nov 7, 09 3:49 AM

These flex-pay bums gotta go. That's what pre-paid is all about. And you pay for your device. Why sell yourself cheap? The willingness to subject yourself to those with dubious payment abilities reeks of desperation, and doesn't put your csr's in a great frame of mind.

artz1986 @ Nov 7, 09 1:01 PM

warlard, I guess you love getting sucked into 2yr contracts, and I also guess you love getting shafted month to month. To be honest, if all carriers had a FlexPay like option, there wouldn't be that many kids signing 2 year agreements. I'd rather spend the money up front for a device I'm gonna own anyway, instead of getting a 'deal' and paying interest on that 'deal' month after month.

leavingtmobile @ Nov 9, 09 2:21 AM

I agree Deanwrd,

I was without service for 4 days in September with T-Mobile. My Blackberry kept going from "SOS" to "edge." I found out other people were having the same problem. My Blackberry started saying "insert sim-card" even though I bought 2 new sim cards and they refused to honor insurance.

Do I even need to address the Nov 3 nationwide outage?

Their service is VERY poor after 4 years. Customer service has DEFINITELY changed.