T-Mobile USA saw its profit decrease to $442 million in the third quarter of 2008, compared to $452 million in the second quarter and $526 million last year, the company said today. Revenue increased to $5.51 billion, compared to $5.47 billion in the second quarter and $4.89 billion last year.
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The nation’s fourth-largest wireless operator had flat total ARPU of $52, slightly increased data ARPU of $8.90 and total churn of 3%, officials said.
T-Mobile now has 32.1 million customers. The German-owned company made news in the quarter by divulging plans for the first Google Android handset, increasing the scope of its 3G network, announcing home femtocells and battling the FCC all summer long.
"In the quarter, T-Mobile took giant steps forward in driving new innovations to meet the pressing needs of our customers," CEO Robert Dotson said.
That may be true, but there is bleak outlook, analyst Kate Price of Technology Business Research wrote in a report today. “Though T-Mobile USA reported double-digit year-to-year revenue growth in 3Q08, the company faces tough competition and a weak economy in upcoming quarters, threatening the company’s relatively consistent record of steady growth over the past three years,” she wrote.
Also, “T-Mobile USA reported a huge shift in postpaid-prepaid mix in 3Q08, with over half of net growth coming from prepaid customers. The company’s 293,000 postpaid net additions were the lowest since the company was formed in 2001.”