T-mobile reports 3rd quarter 2006 earnings.
They signed up a total of 802k net subscribers with 773k consisting of postpaid the rest being prepaid and other. They have a total of 24.139 million customers on their network as of 3rd quarter of 2006.
ARPU was, for voice, was $56. Data ARPU was $5.91.
Churn was 2.3%.
Prepaid churn was 6.9%.
Added 800 cell sites during the quarter to bring the total to 35,300.
Obviously they scored some key spectrum and “We currently expect these licenses to be granted late in the fourth quarter of 2006 or in early 2007.”
In the 3rd quarter of 2005, they signed up a total of 1.059 net new subscribers and obviously, they signed up during the 3rd qt of 2006, 802k net new subscribers that show some decline in growth. In the 4th quarter of 2005, they signed up 1.388 net new subscribers, and I think this 4th quarter 2006, they will sign up around 850k net new subscribers. Just because there was a decline on q3 of 2005 to 2006.
If that does stand that means for 2006, they will have signed up 3.3 million subscribers down from 4.376 million signed up in 2005.
Therefore, I think it was an ok quarter for T-mobile and I do think they will not do that well in the 4th quarter, but will slowly do better in 07.
Just wanted to state that overall penetration rate mainly on the voice side is 73% and the overall churn has decreased to 1.8%.
They are doing great from 2004-2006 with total subscribers from 14 million to 24 million- which is not bad growth.
Obviously, they scored some key spectrum in the Auction 66 that was held. So now, they are able to increase their growth because they will enhance their voice traffic and they will develop and deploy their 3G service in 07-08 periods.
They purchased 120 licenses for $4.2 billion, which doubles their spectrum positions in the top 100 to 26 MHz to 52 MHz, giving them plenty of growth for capacity.
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sprint with its 61$ ARPU has an average cost per user of 40$ profit of 21$ per user
VZW with its ARPU of 50.67 has an average cost per user of only 27.56 profit of 23.11 per user.