Archive for May 2008

 
 

T-Mobile USA Breaks 30 Million Customer Mark

By the end of the first quarter, T-Mobile USA crossed the 30 million customer mark. Specifically, the fourth largest U.S. carrier had 30.8 million customers, adding 981,000 net new customers during the quarter. T-Mobile USA also reported OIBDA of $1.44 billion, up 18% compared to Q1 2007 and reduced contract customer churn from 1.9% in Q1 2007 to 1.7% for the first quarter this year.

During the quarter, T-Mobile USA also closed its acquisition of SunCom Wireless, adding 1.1 million customers and networks in the Southeastern United States, Puerto Rico and the U.S. Virgin Islands.

“T-Mobile has again delivered another quality customer growth quarter,” said Robert Dotson, president and CEO of T-Mobile USA, in a statement. “In the quarter, we crossed the 30-million customer mark, more than tripling our customer base over the past six years under the T-Mobile brand…Our recent service introductions also have cracked open access to new areas of growth with targeted offerings in traditional landline replacement and advanced payment wireless plans along with the continued popularity of our unlimited myFaves offering.”

T-Mobile’s parent company Deutsche Telekom reported a strong quarter as well, despite continued declines in fixed line customers. The German-based telecom giant reported a rise in net income from $706.5 million during the first quarter of last year to $1.42 billion one year later, beating analysts average expectations. But sales slipped 3.1% to $23 billion. In March, the telecom forecast lower sales and earnings at its German fixed-line unit, reporting a loss of 120,000 fixed-line customers during the quarter.

Sales across all T-Mobile units, which serve 11 European countries as well as the United States, grew less than 1% to $14 billion.

BT Returns To Mobile Market With Home And Mobile Broadband Product

BT (NYSE: BT) is back with another attempt in the mobile market. The UK’s largest fixed line operator and former incumbent launched a new mobile package today, BT Total Broadband Anywhere, which gives customers broadband at home and on their mobile, as well as a choice of two Blackberry-style smartphones from Taiwanese handset maker HTC starting at ?23.99 ($27) per month. The service allows consumers to make mobile calls off Wi-Fi connections at home and at BT hotspots around the country. It switches to Vodafone’s network when neither of these two options is possible. In 2001, BT was forced to spin off its mobile division BT Cellnet (later rebranded as O2 and acquired by Telefonica) to satisfy the regulators, and tried to re-enter the market with its BT Fusion product. But the service was a disappointment, attracting only 45,000 subscribers in three years. Meanwhile, BT has watched as mobile networks have begun entering their market, with Vodafone (NYSE: VOD), Orange and O2 all offering a home broadband product. [release].

France Telecom In Talks With Apple; Vodafone’s Portugal iPhone Deal Not Exclusive?

France Telecom (NYSE: FTE), owner of the Orange network, is in talks with Apple (NSDQ: AAPL) to sell the iPhone in other countries, according to the company’s CFO Gervais Pellissier. Dow Jones reports that Pellissier revealed that the discussions were for more than “just two countries.” He also said that France Telecom was “pleased with the success” of the company’s exclusive deal with Apple that has another two and a half years to run—quashing recent rumours that the French group had balked at Apple’s supposed insistence that they slash iPhone prices to boost sales. Pellissier also said that he expected a 3G iPhone to boost sales in France, where Orange has sold over 100,000 of the device.

Yesterday, Vodafone (NYSE: VOD) announced it would be selling the iPhone in ten countries. News later surfaced that its deal in Italy is not an exclusive one, after Telecom Italia announced they too would be selling the device. Thomson Financial, meanwhile, picked up a story today from Portuguese newspaper Diario de Noticias, which reported Tuesday than Vodafone’s Portugal deal is not an exclusive one either, though it did not cite a source. Portuguese networks Portugal Telecom and Sonaecom are reportedly still negotiating with Apple over distributing the iPhone.

In Australia Vodafone declined to say whether the deal to sell the iPhone was exclusive, reports the SMH, and it’s a short jump to the conclusion that it is therefore not exclusive. “Mark Novosel, telecommunications market analyst at IDC, said the fact that Vodafone hasn’t announced whether the deal is exclusive indicates the iPhone will be sold by all carriers…He said it is likely Vodafone will sell the iPhone at a discount and lock it to its network, in which case Apple would sell an unlocked version – capable of running on any carrier – through its own stores.”