T-Mobile gains in prepaid, loses overall

As we wrap up our journey through the Q1 reports we get to another company that has been held together with duct tape and prepaid wireless for the past year or so. That’s T-Mobile, recent acquisition target of AT&T. They reported their Q1 earnings late last week, and ended up losing 99,000 subscribers. Of course, prepaid gained, giving the company another 372,000 accounts. That means that they lost on the more profitable postpaid end. Those prepaid customers are up, too, from 41,000 in the first quarter of 2010, so that’s a positive sign. Their prepaid churn is much higher than competitors, though, up at 6.7 percent. Can they continue adding customers with such high turnover? We’ll see more in Q2, but maybe not that much further. They’ll in all likelihood become part of AT&T in the not so distant future.

Related Posts

Leave a Reply