While AT&T, Sprint, T-Mobile and Verizon get most of the attention, MetroPCS has quietly carved out a sizable share of the market with its no contract approach. The company added 132,000 subscribers for its first quarter and it now has roughly 9.5 million subscribers.
MetroPCS reported revenues of $1.2 billion for the first quarter and the average revenue per user rose to $40.56. Because it offers no-contract service, its churn rate (how often users leave for other providers) is higher than the big four but its 3.1 percent churn rate is pretty low for a prepaid provider.
Unlike other prepaid providers like Boost Mobile or Virgin, MetroPCS owns its own spectrum and is making a strong push toward 4G LTE. It surpassed 580,000 4G LTE subscribers last quarter and it plans to have 95 percent of its CDMA footprint covered with 4G LTE by the third quarter.
“The wireless industry is rapidly moving towards 4G LTE and while the first quarter presented us with challenges, we believe we remain well-positioned for long-term growth and success,” said CEO Roger D. Linquest, in a prepared statement. “In wireless, speed does matter and our 4G LTE network will provide a significant enhancement in the customer experience when compared to our current 3G CDMA experience. Our service plans offer the predictability, affordability and flexibility our customers have come to expect, and with all taxes and regulatory fees included, and no contract, we believe we continue to offer the best deal in town.”
Any of you use MetroPCS out there? What’s your take on it?