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T-Mobile Adds 857,000 Subs

T-Mobile US Inc. made a net gain of 857,000 customers during its third quarter, the carrier announced today, handily beating larger rival Sprint Corp. (NYSE: S) for customer additions over the summer.

The Bellevue, Wash.-based operator reported third quarter net income of $526 million, down from $1.79 billion in the third quarter of 2006. The firm says that the higher earnings in 2006 were due to a $1.5 billion income tax windfall. Revenues were $4.89 billion, up from $4.37 billion in the quarter a year before.

The Deutsche Telekom AG (NYSE: DT) subsidiary, the fourth largest wireless operator in the United States, counted nearly 28 million customers on its books at the end of the third quarter.

Larger rivals AT&T Inc. (NYSE: T) and Verizon Wireless each added more than a million new customers in the third quarter. In contrast, T-Mobile's closest rival, third-ranked Sprint, posted a net loss of 60,000 customers this quarter. (See Sprint Stumbles Again.)

T-Mobile remains the smallest of the big four U.S. mobile operators, though, as Sprint exited the quarter with around 54 million wireless customers.

T-Mobile reported average revenue per user of $53 in the quarter, up from $52 in the third quarter of 2006. The firm ramped up new initiatives such as its WiFi-based fixed/mobile "[email protected]" venture during this quarter, adding new phones for the service.

— Dan Jones, Site Editor, Unstrung

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