The American branch of the T-Mobile Corporation has reported its revenue for the past year and the company reached a pretty hefty $4.69 billion in revenue last year, a growth of 0.9% compared to the previous year. Despite this increase in profits the company still is losing subscribers and the large part of its revenue is generated by prepay customers.
Despite having one of the best and fastest 4G networks in the US ( according to them at least ) the company still has issues in gathering new subscribers to its data plans. With the data ARPUs rising faster than any other US rival company the carrier is still losing ground in the race. Considering that they have Carly ( that beautiful brunette that starts in their T-Mobile Commercials ) they should be on the rise yet they still are losing customers. The company managed to grab 33.73 million subscribers in the 4th quarter of 2010 according to some figures recently released, yet that’s a step down compared to the 33.76 million subscribers for the 3rd quarter of 2010.
T-Mobile did mention where the large shift occurred and that comes as sort of a surprise as they did lose on-contract subscribers, which went down a massive 318 thousand users in the 4th quarter. That’s 5 times more than they lost in the other three month period. Although pre-pay customers are up when compared to the 3rd quarter, the sales figures still seem down a bit when comparing them to the achievements reached in 2009.
Average Revenue Per User ( the previously mentioned ARPU ) was $46 in the fourth quarter of 2010, down slightly from what the company managed to grab in Q3 of the same year, but consistent with the figures generated in 2009. The contract ARPU was $52 in Q4 of 2010, which didn’t go down compared to Q3 of the same year, and which was up when comparing it to the $51 generated by contract based customers in 2009. The prepaid sector did shine more in this past year, as the company managed to get an ARPU of $19 in the fourth quarter which is slightly up when comparing it to the $18 generated in 2009.
Data service revenues where a sector in which the company did rather well for itself as it generated $1.29 billion in the 4th quarter of 2010, which is up by 25% compared to the 4th quarter of the previous year. The revenue generated by data services represented roughly 28% of what the company managed to reach in the ARPU sector. This is again another statistic which went up when compared to 2009 when the percentage represented 22% of the blended ARPU or $10.2 per customer.
T-Mobile did say that the competitive smartphone market had a part of the blame in this downfall in sales as more people switched to smartphone rather than feature phones. With the increase in smartphones sales the company reached in 2010, we might see where the smarphone sector came into play, yet the company CEO Philipp Humm did say that “High contract churn and significant contract customer losses in the fourth quarter of 2010 indicate that we still have a fair amount of work ahead of us” and that “any turnaround will take time”. I can only wish the company the best of luck as a market filled with competitors will only be beneficial for the customer as the quality of services will be increased in order to stay alive in such a sector. Until the next time, do you have a contract with T-Mobile or did you recently terminate it, and if yes, then what was the reason? Make sure to drop a line in the comments below.1