Another quarter,
another half a million contract subscribers gone.
T-Mobile USA’s contract customer losses and revenue decline that make good headlines, but the really interesting number in the latest T-Mobile report is the big drop in prepaid customer additions. A year ago, T-Mobile added 220,000 prepaid customers. This past Christmas quarter, that number dropped to 166,000. It is not hard to find the major reason for that decline: T-Mobile’s branded prepaid ARPU sky-rocketed by 11% in one year. Let’s examine the situation. T-Mobile continues bleeding contract customers… so it opts to focus on premium prepaid service pricing, which in turn damages prepaid customer adds and increases churn. And now T-Mobile has both a contract and a prepaid crisis in its hands. How does this make a lick of sense?
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