T-Mobile USA loses 99,000 contracts in Q1 2011

In T-Mobile USA’s Q1 2011 earnings report, filed today in the small hours on the wires, it revealed that it has lost 353,000 more contract customers since the same period last year. Net customer losses sat at 99,000 for Q1 2011 compared to 77,000 in Q1 2010. 

The total contract customers who left by the end of the first quarter of 2011 was 471,000, compared to 318,000 the previous quarter and 118,000 for the first quarter of 2010. T-Mobile USA claims that the decline is down to “continued high contract churn due to competitive pressures” – in other words, the competition is hot and it is losing out.

Its competitors in Verizon, AT&T and Sprint are still outperforming T-Mobile USA, ZDNet points out, as it lacks the same reach for devices and networks. 

The attrition rate is the problem, says T-Mobile. CEO of T-Mobile USA Philipp Humm said in a statement: “We still have challenges facing our business as evidenced by high contract churn and contract customer losses in the first quarter of 2011.”

Average Revenue Per User (ARPU) looked a little more attractive, as Humm optimistically hummed: T-Mobile has “seen some positive trends in the quarter as evidenced through data ARPU growth rates.”

ARPU held 46 percent in the first quarter of this year, which T-Mobile USA says is consistent with Q4 2010 and Q1 2010. Contract ARPU sat at $52 in Q1 2011, up from $51 in Q1 2010.