MetroPCS reports solid first quarter

With the economy in less-than-stellar shape, I have a feeling that the major postpaid carriers won’t quite be posting gains as solid as MetroPCS. The flat-rate, unlimited prepaid carrier announced their results for the first quarter of 2008 this morning, with the standout number being the gross addition of 960,000 subscribers. That’s a significant increase over the first quarter of last year: 15 percent to be precise. However, that’s gross additions. We still have to subtract out churn.

The company’s 4.0 percent churn rate for the first quarter was down 0.8 percent from the fourth quarter of 2007, but was flat with the first quarter of last year, suggesting a seasonal trend. This left the net subscriber additions at 452,000.

We know that MetroPCS crossed the 4 million subscriber mark early this year, and added over a million customers in 2007. They kept up that pace for this year-over-year period. Their total subscribers now number 4.41 million.

“With over three quarters of a million net subscriber additions in the last six months, consumers continue to see the extraordinary value proposition that MetroPCS provides to those who want unlimited wireless service at a compelling price. We also continue to benefit from the ongoing landline replacement trend in the U.S.,” said Roger D. Linquist, MetroPCS’ Chairman, President and Chief Executive Officer.

People being turned down for credit checks at the major carriers doesn’t hurt, either.

Related Posts

Leave a Reply