5/10/2007 11:49:00 AM
T-Mobile adds 106k contracts in Q1
T-Mobile added 106,000 net new contract customers in the first quarter of 2007, taking it to 3.8m pay monthly customers. But the operator's overall subscriber base increased just 2% year-on-year to 16.7 million as it shed its prepay business.
The operator also saw its contract churn drop to 22.8% a year, down 3.6% on a year ago, as T-Mobile's many 18-month contracts continued to slow the rate of churn.
T-Mobile's start to the year was far less aggressive than in the first quarter of 2006, which saw it net 266,000 new contract customers.
Non-voice revenues have also grown slightly from 19% to 20%.
The operator reported a net prepay customer loss for the first quarter of 277,000, with its total base down 200,000 to 12.9m year-on-year. The figures include Virgin Media's prepay customers, and reflect the operator's shift toward contract, as well a drop in both T-Mobile and Virgin prepay subscribers.
Jim Hyde, Chief Executive of T- Mobile UK, said: 'T-Mobile UK has produced another set of strong results in a marketplace that continues to be highly competitive, and we have made further strides in delivering fast, simple and affordable mobile broadband and Wi-Fi. We believe that the principal means of accessing the internet will increasingly be wirefree and we continue to lead the market with our broadband wireless network.
'Flext continues to lead the industry in contract value, driving customer growth and increasing average contract revenues and loyalty. At the same time, we have seen a noticeable reduction in low revenue pre-pay customers, further improving the overall quality of our customer base.'
He added: 'For 2007 as a whole, we look forward to further profitable growth, led by T-Mobile delivering a differentiated service experience for our customers at every touch point and bringing fast, affordable and reliable mobile internet to the mass market.'