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T-Mobile’s Q1’11 financial results have finally been publicized. They raked in nearly $4.63 billion in service revenues, but – as one would imagine – lost some customers. 99,000 net customers were lost. To be specific, 471,000 contract customers opted not to renew their contracts, but they did manage to get 371,000 additions through prepaid channels and wholesale.
That brings their total of customers to 33.63 million, which is actually 100,000 customers less than what they had in the same quarter last year. T-Mobile’s clearly struggling to grow which explains – you guessed it – Deutsche Telekom’s desire and need to sell it to AT&T. T-Mobile looked to hush questions about AT&T’s impact on T-Mobile’s business model with the following quote:
“We continue to drive our strategy and lay the foundation for improved future performance and have seen some positive trends in the quarter as evidenced through data ARPU growth rates,” said Philipp Humm, President and CEO of T-Mobile USA. “The success in our data business has been driven by our 4G network message, our compelling 4G device offerings and our attractive data plans; however, we still have challenges facing our business as evidenced by high contract churn and contract customer losses in the first quarter of 2011.”
T-Mobile certainly has been operating as if it were its own company (because they are) with several high profile device launches having just taken place at the end of last month and with new devices announced to be headed our way soon such as the HTC Sensation and HTC Flyer. The company fully understands that the proposed merger of AT&T and T-Mobile may very well be rejected by the FCC. [via Yahoo]
Add more devices, more good packages and you will be fine, T-mobile!
Keep those pigs at AT&T from fcking everyone up!
Yesterday I just saw a great package, ney, the greatest package (no that’s what she said, guys this is important). $15/month giving 2gb data and pay as you go voice and text, I actually assume that the initial 15 is put to voice and text but I don’t care, I’ll get it either way. Unfortunately, it won’t be a high profit deal for them and that’s why they stay in fourth.
T-Mobile will continue to lose customers as long as their data network is so small. On dumb phones t-mobile was fine were I live, but when I got a Mytouch3g I found that the 3g and even Edge network was Horrible here. I have Verizon 3g widely available and LTE available in close proximity and will be moving to them as soon as my contract is up.
I definitely agree there, in my area (Miami), they definitely need to put up more towers if they want to be more competitive. Their coverage is definitely too sparse here, and that’s really my only complaint about them (although a pretty serious once).
Sometimes it’s not about quantity but rather quality.
I love T-Mobile. Great service in Portland and I’ve got two lines with unlimited data for $110 a month. Plus they have no problem with Cyanogen or any other unlocked devices and put out plenty of stock Google phones.
Lets not forget that if the buyout falls through at&t wide have to give T-Mobile 3 billion dollars and have to cover they’re blind spots with service….so there’d b more coverage basically what at&t covers and T-Mobile dosent Sud b taken care of.
To heck with the AT&T deal, Google should just buy them and make it G-Mobile
The best android line up but moving no where!
Moving nowhere because of the bad PR the merger has brought upon it. WHat the hell did anyone really expect? did they really expect a blowout in sales when people are unsure if T-mobile is even gonna be around in the length of a new contract?
I figure their loss in customers is due to the whole potential ATT buyout. T-Mobile is offering some great discounts for people that stay on and renew their contracts. I just did and received around $35 off what I already have. Couple that up with my corporate discount and I’m paying way less for multiple lines than a lot of people are :)
I was a T-mo guy for years. I’m jumping ship. Poor deals, bad customer service, and a really shoddy phone insurance company partnership means I’m heading for boost.
”
bad customer service”
ok, you clearly werent on tmobile then. lol, troll fail
Lol. Crappy phones, crappy network but excellent customer service!!
First, bear in mind that if AT&T has to pay the $3 billion it will go to Deutsche Telekom, not T-Mobile USA. T-Mobile USA may never see a penny of it.
Second, pay particular attention to the part of the story where it says they lost _contract_ customers, but gained _prepaid_ customers. T-Mobile of late has become very aggressive at requiring high deposits on new prepaid accounts. The reason is to get interest-free loans from new customers. This makes sense considering that T-Mobile is so strapped for cash that they recently offered their 7,000 US towers for a sale-leaseback. If you require high deposits you will not get as many new customers.
$15/month for a data package makes them the best option for customers on a budget that need 2gb of data or more.
Also, phandroid, I just got my first pop-up ad, and you get 3 strikes before you’re out. Your site is totally not worth that trouble, particularly on mobile devices. That is all.
Youve only got one? I get at LEAST one per phandroid.com visit.
ps. GO TMOBIL!
someone needs to break out a tip jar for these poor phandroid guys.
TMobile has horrible phones. I use them because of the Nexus S, but otherwise I would be on some other carrier.
wow are you kidding me!? Tmobile has the best phones on the market! The G2X is the only phone in the entire US that is Dual Core AND its stock android. The HTC Sensation is coming in just a couple of weeks which is powered by a 102 ghz Dual core with qhd display and amazing design and sense 3.0 (aka the android fanboy’s dream phone) There was a poll done like two days ago on either here or android central that the community voted Tmobile as the carrier with he best phones…. Dude your on crack…lol
Please excuse him he is part r*tard
I think the loss of customers is very obvious, you go public with selling your company to the competition that has the worst customer assistance and plans out of all carriers what the heck do you expect, customers lining up to sign long term contracts??? T-Mobile has started to put out the best line of phones out of all carriers, if they were not selling out and changed their advertising technique around they would turn this around very fast. The best product and the best plans, that’s why I’m a T-Mobile customer. Too bad they don’t try to turn it around.
Extremely poor coverage & ATT hovering. I am gone.
It is amazing and of no surprise that are losing post paid customers. They can’t be because of phones because they have a formidable line-up of phones that will get even more so in coming weeks and months and you get more minutes for your money still for this day. The iPhone is of No threat anymore. I strongly believe it has to be network coverage that is paltry in areas of this country where 3G and 4G coverage is nonexistent.
So when will AT&T fire/replace teh girl in pink polka dots?
I currently have the t-mobile mytouch 4g but I have to admit that Verizon data speeds is way faster than hspa