T-Mobile ARPU down, customers up

T-Mobile ARPU down, customers up

T-Mobile has reported a customer base of 17.175 million for the first quarter of this year up 3% from a year earlier but slightly down on the previous quarter.

The operators customer base is still predominantly made up of pre-pay customers, who account for 13.1 million of its 17.2 million customers.

T-Mobile reported a surge in the use of non-voice services such as data. Non-voice ARPU has risen by three points from 24% to 27% when compared with the same period last year.

However, ARPU for both contract and prepay dropped. In contract, ARPU fell to £39, compared with £41 in Q1 2009, as the operator impacted by termination rate cuts and the growth of Sim only.

Meanwhile, prepay customers average spend was £6, a 25% drop compared with Q1 2009.

The operator saw a decline in revenue from £760m to £695m when compared to the same period last year, which it claimed was a reflection of the impact of lower termination rates.

However, T-Mobile remained optimistic about its future, citing the merger with Orange and the quality of its network, and confirmed that investment in its 3G network will continue.

T-Mobile said: 'As a result of our ground-breaking joint network infrastructure programme with 3UK, our HSDPA 3G network already provides over 90% population coverage. By the end of this year, this will have increased to over 98% and will be the most extensive 3G network in Europe'.

T-Mobile UK managing director, Richard Moat said: 'This is another set of good financial results, which confirm the fundamental change in T-Mobile UKs position since the first half of last year.

'We have reinforced our momentum with a maintained customer base, continued strong growth in data revenues, an increase in customer loyalty and a strong financial performance, despite the regulatory impacts which have affected all in our sector.

'Our focused approach to customer offers, operating efficiency and leveraging our direct distribution channels are continuing to pay dividends. Our network is also providing an increasing competitive advantage. In particular, our 3G network is well on its way to deliveringthe UKs widest 3G coverage, as a result of our innovative 3G network sharing agreement.

'This will be our last set of financial results as an independent company. Theyre a great way for us to enter our joint venture company with Orange UK a combination which is set to change the face of UK mobile and create new value for our customers and shareholders alike'.

Written by Mobile Today
Mobile Today

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