T-Mobile had a solid third quarter with 137,000 new net subscribers thanks to a strong performance with its smartphones like the Android-powered G2.
The fourth-largest carrier now has 33.8 million customers, which is nearly 60 million customers behind AT&T and Verizon. Sprint is the closest competitor with about 49 million subscribers.
Diving into the T-Mobile earnings report does show a few causes for concern. The service revenue was $4.71 billion from the quarter, which was down from $4.73 billion for the same period last year.
Additionally, T-Mobile lost 60,000 contract customers for the period compared to a 106,000 net customer addition last year. The carrier desperately wants people on long-term contracts for devices like the myTouch 3G Slide because that leads to guaranteed revenues for a relatively long period of time.
The overall net gain in customers came from the rise in the prepaid consumer. Part of this is by plan, as T-Mobile actually has great no-contract plans for people who bring their own devices to the network.
T-Mobile is seeing some good traction with smartphones, as it now has 7.2 million customers using these devices compared to 2.8 million for the same period last year. Look for that trend to continue, as the carrier plans to bring out multiple Android smartphones this quarter which will retail for $30 and even $10 with a new contract.
The carrier is also making a big push with its HSPA+ network and it is now saying that it offers the nation’s largest 4G network. The carrier believes that because it is delivering speeds of up to 21 Mbps (theoretical), it can describe the network how it wants even if it doesn’t fit the “4G” description of standards bodies.
Sprint and AT&T aren’t too pleased with this 4G moniker, as each has talked smack about the fourth-largest carrier. In the end, it’s going to be the consumers who decide if the “4G” label matters.
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