T-Mobile posted its results saying that T-Mobile USA gained more than 800,000 net subscribers in the third quarter, the majority are the higher-valued postpaid variety. The major U.S. carrier now has a customer base of 24.1 million, of which 85 percent are postpaid subscribers.
Profit from postpaid service per user increased by $1 to $56, compared with $55 postpaid ARPU in both the second quarter of 2006 and the third quarter of 2005. The company noted that the increase in postpaid ARPU was “primarily related to data revenue growth,” while the decrease in total ARPU was because of the higher mix of lower-paying prepaid customers in its 2006 customer base.
Overall customer decrease rose slightly. Prepaid decrease increased from 6.6 percent last year to 6.9 percent this year, while postpaid decrease was down slightly from 2.4 percent in 2005's third quarter to 2.3 percent this year.
T-Mobile's service profit increased about 18 percent to $3.7 billion. The carrier's profits were up increased from $458 million a year ago to $1.79 billion this year.