12:46 pm August 9, 2012, by Christopher Seward
T-Mobile continues to struggle to keep valuable customers, losing more than a half-million of its long-term subscribers in the three months ending in June, the company reported Thursday.
Competition from Verizon, AT&T and Sprint for long-term subscribers and rivalry from smaller competitors for prepaid mobile customers continue to put T-Mobile in a bind when it comes to growing its most lucrative customer base – those signing up for long-term contracts, who also tend to have the highest monthly bills
T-Mobile, the country’s No. 4 cellphone company, said it lost 557,000 contract customers during the period but the loss was offset by gains in prepaid and wholesale customers, leaving it with a net loss of 205,000 customers overall. In the same period a year ago, T-Mobile lost 50,000 customers.
While T-Mobile’s top three competitors increased revenue from monthly fees for contract service, T-Mobile saw a 9 percent drop from the same period a year ago.
T-Mobile, however, reported its customer turnover rate fell during the quarter. The company managed to report a nearly flat second-quarter profit of $207 million, compared with $212 million in the same period a year ago. Revenue fell 3 percent to $4.9 billion.
U.S. regulators last year blocked AT&T’s buyout of T-Mobile, which is a subsidiary of Germany’s Deutsche Telekom AG.
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