Deutsche Telekom released their Q2 numbers overnight. In this Bloomberg reported that their estimate for T-Mobile USA’s net contract subscriber loss for the quarter would be around 350,000. T-Mobile reported a net loss of 281,000 contract customers while at the same time their prepaid customer gain was 231,000 for a net loss across T-Mobile USA of just 50,000.
While “just 50,000″” sounds a little strange we have to consider the fact that the AT&T/T-Mobile merger is finishing the regulatory process. Several T-Mobile USA customers are sending a clear message that they don’t want to be AT&T customers. It’s also no secret that despite their current high end device portfolio offerings, foot traffic in T-Mobile stores is way off.
More after the break
In Q1 2011 (with only 10 days post merger announcement) T-Mobile reported a combined net loss off 99,000 customers, while last year in Q2 without any hint of a merger T-Mobile had a combined net loss of 93,000.
T-Mobile’s growth is primarily in the prepaid area. Let us not forget that in Sprint’s last quarterly results their biggest growth was in the prepaid segment as well. As carriers begin offering better prepaid packages, and devices, in line with their post paid options, customers seem to be gravitating towards prepaid for more control of their finances.
Unlike AT&T, T-Mobile offers a selection of cash and carry prepaid devices at outlets like Walmart and soon to be 7-11, however anyone who wants to purchase a device at full retail can put any of the devices in T-Mobile’s portfolio on a prepaid plan.
T-Mobile saw in an increase in 3G/4G devices to nearly 10 million. They also took their second quarter earnings release to announce that their HSPA+ 42 network now cover 170 million people in more than 100 markets in the US. T-Mobile continues to activate more and more HSPA+ 42 markets and it still seems to be business as usual.
The disappointing thing about these quarterly results is that without the impending merger this may have been a great quarter for big magenta.