updated 11:22 am EDT, Thu August 9, 2012
Loss of 500k contract customers blamed on old devices, credit standards
T-Mobile USA has continued to lose customers, according to the carrier's second-quarter results. A loss of 557,000 contract customers in Q2 was blamed on its tightened credit standards along with older devices being phased out. A net increase of 227,000 prepaid customers, triple the numbers from the same period last year, sees the company losing 205,000 net customers for the quarter.
Profit for the quarter hit $207 million, a marginal decline from the $212 million posted in the same period last year. Total service revenues hit $4.4 billion in the quarter, the same as the first quarter of this year, but 5.2 percent less than Q2 2011 revenues.
Other high points mentioned in the quarterly results include the opening of the 1,000th T-Mobile Premium Reseller store, signing two new Mobile Virtual Network Operator (MVNO) agreements, and reiterating its $4 billion plan for evolving its network to use 4G and initiate LTE services in 2013.
Chief Executive Philipp Humm resigned from the company at the end of June, forcing COO Jim Alling to take charge while a replacement is being found. Humm left to join a competitor in Europe and to rejoin his family on the continent. [via CNet]