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T-Mobile USA Reports Q1

T-Mobile USA reports 34% increase in operating income to $1.1B

May 11, 2006

2 Min Read

BELLEVUE, Wash. -- T-Mobile USA (NYSE:DT - News):

  • Over 1 million net new customers added in Q1 2006

  • $1.1 billion in Operating Income Before Depreciation and Amortization (OIBDA) in Q1 2006, a 34% increase over Q1 2005

  • Reduction in postpay churn to 2.1%, from 2.3% in the fourth quarter of 2005

  • T-Mobile achieves top ranking in four separate J.D. Power and Associates surveys

  • Continued investment in network quality -- 3,700 new cell sites on air over the past 12 months



In the first quarter of 2006 T-Mobile USA added 1.04 million net new customers, up from 957,000 in the first quarter of 2005, and lower than the 1.39 million net customers added in the fourth quarter of 2005 primarily due to seasonal impacts. Postpay customers made up 70% of the first quarter customer growth, up from 66% in the fourth quarter of 2005, and comprised 84% of T-Mobile USA's total customer base at March 31, 2006.

Postpay churn fell to a record low 2.1% in the first quarter of 2006, down from 2.3% in the fourth quarter of 2005 and the first quarter of 2005. Prepaid churn was 5.8% in the first quarter of 2006, compared to 6.6% in the fourth quarter of 2005 and 6.4% in the first quarter of 2005. Blended churn, including both postpay and prepaid customers, was 2.7% in the first quarter of 2006, down from 2.9% in the fourth quarter of 2005 and 2.8% in the first quarter of 2005.

"We started the year strong, adding over one million high quality new customers," said T-Mobile USA President and CEO Robert Dotson. "T-Mobile customer loyalty also continues to increase, resulting in record low churn aided by the benefits of ever increasing network quality improvements -- while continuing to reap the benefits of a 56% expansion in our coverage footprint last year."

Rene Obermann, CEO of T-Mobile International and member of the Board of Management of Deutsche Telekom (NYSE:DT - News), stated, "T-Mobile USA again delivered strong results and is a key driver of growth for the mobile segment and Deutsche Telekom as a whole. Together with the U.S. business, T-Mobile International's customer base is now approximately 88 million customers worldwide. Growing the business to this scale provides strong leverage in terms of both size and expertise to compete effectively in the wireless market."

T-Mobile US Inc.

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