CEO announced there will be no job cuts for 2009, company is sticking with same 401k matching and all benefits will remain intact and future store expansion will continue. I think that is showing business in the US is doing pretty good for DT, with all the job cuts going on right now, T-Mobile is basically adding jobs. Hopefully they'll close all their foreign call centers and move them to the US. Plenty of folks will be willing to work customer care right now in the good ol' US and it will serve customers better. Oh and the G2 is going to be 10000 times the best phone on the market.
Not exactly.......no raises for 2009, att wireless suspended bonus payouts. Arpu is down across the industry...cricket and metro have found a solid niche in the market.
I'm guessing churn is up, defaults are up and international roaming revenues are down.
Flexpay basically did away with overages and the new laws around prorating etf fees are all adding to lower arpu and lower ebitda.
Plus this is the year of the slashed dividend, so I expect dt to do the same.
I highly doubt a dividend slash for DT. Flexpay customers also pay for money in their flex accounts at 20 cents a minute which offsets the no overages a bit. I'm not so sure the churn is any higher and feature adds are way way up. Flexpay adds don't look good for stockholders compared to postpay because they have to be categorized as a prepay add, but the monthly recurring revenue is usually higher because of a control charge and messaging in family accounts have to be in family bundles and most flexpay is a 2 year contract. I would say the no overages in the flexpay is good longterm because overages is a top 3 reason why customers cancel their accounts in all major carriers.
Why would they slash their dividend
when all they have to say is that everything is going according to plan?
Also, that's sure not gonna help the
stock price. Does anyone know what affect SKYPE and the other free phone service mentioned in todays NYT have on
DT and others??
well, it's held up decently considering DT has had 3 analyst downgrades in the past 2 quarters. Remember, I was reporting just the US unit, and DT is heavily engaged in business all over the world. There are a lot of regions that are being hit much harder economically than in the US in this recession, eastern Europe for example. Not sure how much that region will effect the companies overall performance until the next few earnings.