Mon, May 28, 2012, 3:35 PM EDT - U.S. Markets closed for Memorial Day

A look at telecom-industry subscriber reports

Key facts from selected telecom-industry reports disclosing subscribers, financials

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Here is a summary of reports for selected telecommunications companies and what they reveal about their own and the industry's prospects:

April 19: Verizon Wireless gained 501,000 subscribers under contract-based plans in the quarter, slightly above analyst expectations. Contract-based plans are the most lucrative. The average monthly bill for subscribers on such plans was $55.43, up 3.6 percent from a year ago, thanks largely to iPhones coming to Verizon last year. However, most of the profit ends up flowing to Apple because of iPhone subsidies. On the landline side, revenue at Verizon Communications Inc. continued to decline slowly as customers continue to cancel their phone and DSL lines.

April 24: AT&T Inc. says it gained a net 187,000 customers on contract-based plans in the first quarter, but these were almost all tablet users, brought in by the launch of the new iPad in March. AT&T gained a net 726,000 subscribers of all kinds in the first quarter, counting ones on no-contract plans and ones on non-phone devices like the Kindle. That was the lowest figure in eight years, and less than a third of the number of subscribers added in the same period last year.

April 25: Sprint Nextel Corp. says it added a net 263,000 subscribers to the Sprint network on contract-based plans. That was up just a smidgen from a year ago, but it comes as AT&T and Verizon Wireless have seen big drops in new customers.

Leap Wireless International Inc., the nation's sixth-largest cellphone carrier and operator of the Cricket brand, says it had 258,000 net new customers in the quarter. The company says that nearly 62 percent of new handset sales in the quarter were for smartphones or phones that can use its Muve Music unlimited music subscription service. Smartphone or Muve customers tend to generate more revenue for the company.

April 26: MetroPCS Communications Inc. says it gained a net 131,654 subscribers in the quarter, the worst result in years for the first quarter, which is normally the company's strongest. It ended the quarter with 9.5 million customers.

Time Warner Cable Inc. says it added 422,000 voice customers in the quarter to end with 5.1 million. Most of the gains came from the February acquisition of Insight Communications, a cable TV company with customers in Indiana, Kentucky and Ohio.

May 2: Comcast Corp. says it gained 164,000 voice customers to end the quarter with 9.5 million.

May 4: U.S. Cellular Corp., a unit of Telephone Data and Systems Inc., says it lost 38,000 subscribers from contract-based plans and 49,000 overall. However, 34.4 percent of the phones on contract-based plans are now smartphones, which come with higher fees for data. That's up from 20.2 percent a year ago, and meant that U.S. Cellular boosted the average monthly cellphone bill from $47.65 a year ago to $50.52. The company ended the quarter with 5.84 million customers, making it the seventh-largest cellphone company in the country.

May 7: Frontier Communications Corp. ended the quarter with 3.2 million residential lines, down about 71,000 from the previous quarter.

May 9: CenturyLink Inc. says it had 14.4 million access lines, a loss of 205,000 during the quarter.

May 10: Deutsche Telekom AG says its T-Mobile USA lost 510,000 branded contract customers, while the prepay business saw an increase of 187,000 customers.

Windstream Corp., a local-phone company that's transforming itself into a business telecommunications provider, says it had 1.9 million consumer voice lines, a loss of about 16,000 during the quarter.

 

14 comments

  • Asif  •  Arlington, Virginia  •  1 month 0 days ago
    Sprint continues to lose customers at a rapid pace with distribution issues at their Sprint Prepaid Group as they continue to make bad decisions such as shrink their distribution while iPhone subsidies continues to depleate profit margins and give more headache for the CFO. Sprint must rely on Clear at this point to leverage their 4G network to make any inroads or hope for survival.
  • Asif  •  Arlington, Virginia  •  2 months ago
    What about the Clear (CLWR) figures. Clear has been aggressive lately, what other company can take a 3% sell which Google unloaded their share recently and still keep moving strong.
  • Westbound66  •  2 months ago
    Frontier said 77K from previous quarter, so does that mean for 4 quarters they lost 308K lines? Pretty Significant. At that rate they will only be around 10 more years...
    • JosefBleaux 24 days ago
      Their original strategy was to get the landline business so they could market cable, internet and cell phone service to those customers. They knew landlines were a dying business but they wanted the customer base to market other products. A good move I think.
    • Westbound66 24 days ago
      they own no cell services at all. Reselling AT&T is not going to save them...Sorry
  • Michael  •  San Diego, California  •  3 months ago
    On Spirnt I have Unlimited everything with no surprises on my family plan. That is five Smartphones for $240 a month.
    • Rasheed Deli 3 months ago
      You spend 3K a year of phone service? Does anyone in your family have a life? I bet you have 6 LED TVs with not books in the house. Kids play on the PC or I phone all day.
    • Mike Swanger 2 months ago
      They are phone pimps with no real life!
    • mmuoio 2 months ago
      Enjoy them----last time I looked S was at $2.50 and continuing south.....you can't make money with unlimited the way they priced it....and guess what.....S is proof of that concept.
  • byron  •  3 months ago
    AT&T and Verison are the only true choice. The other companies are just window dressing.
    • NeilB 1 month 4 days ago
      Try US Cellular
    • byron 1 month 4 days ago
      No thanks.
    • JosefBleaux 24 days ago
      I agree. Most of the others don't have the coverage of AT&T and Verizon, lots of dropped calls, lots of areas where they have no service, etc.
  • David  •  3 months ago
    Sprint would sell more iPhones if the store reps did not drive subscribers towards Android.
    • Iana Ahmed 3 months ago
      Yes, that is correct but do you understand that Android has double the profit margin and half the risk of iPhones. People are purchasing iPhones and then putting it in different networks and the subsidy for iPhones is 3X higher that triple the risk for half the profit, so selling iPhone is a last ditch effort.
    • David 3 months ago
      You are correct, however the chipsets on Sprint lower the risk that GSM providers experience. Still, they need to move phones and the press is not on to do so.
  • Thomas  •  Washington, District of Columbia  •  3 months ago
    Bought a Sprint contract for the family, now we are treated very badly by employees of the Sprint PCS stores Kingstown Va., and I have a broken phone I cannot use and they will not fix it. I recommend any company other than Sprint to get good service and to increase value on the stock market for anyone other than Sprint.
    • Marry jane Smoke a blunt 3 months ago
      Sprint is a bunch of losers know they are headed for some BIG CHANGES
    • Thomas 3 months ago
      It's showing via the stock market, can't wait till they go Bankrupt. At the rate they are training thier personel it shouldn't be long.
    • David 3 months ago
      Advice: see if the store is operated by a third party then report them to Sprint. There is more to this story...
  • Michael  •  San Diego, California  •  3 months ago
    Don't be fooled by ATT, they will shaft you big time. They start you with limited Data and it is only when you get your bill that you realize how you were hoaxed.
  • EHF  •  Burbank, California  •  3 months ago
    Decided to check out ATT broadband hotspot device Jan 19 2012. The ATT rep trying to sell me on 4G LTE cell phone and broadband hotspot service. I was told I had 14 days to do so and cancel without penalty. I monitored the data usage hooked up to my laptop for two days not using it for anything after checking the speed out, which is not faster than my existing 3G broadband service. The rapid escalting data usage for two days of the 5GB 4GLTE plan while I was not using the computer, just sitting there watching the data usage convinced me to cancel service Jan 21, 2012 and return the device. I was charged a $35 restocking fee I was not told about. I was sent and just received a bill for $230.70 from ATT including $28.33 for monthly service for two days and a $150.00 termination fee plus a $36.00 activation fee and various taxes. Imagine what the cost would be if I had used the device and service. Outrageous. Consumer complaints to the AG, BBB, FTC and FCC.
  • Asif  •  Arlington, Virginia  •  3 months ago
    Are you guys ever planning on reporting the resellers which are adding customers hand over fist such as Simple Mobile ( http://www.mysimplemobile.me ) or other resellers that are making up majority of the net adds right now?
  • robert  •  Melville, New York  •  3 months ago
    How many times are you guys going to recycle the same article?
  • Captain  •  Los Angeles, California  •  3 months ago
    FTR reports on 2/16, not 2/23. Very poor journalistic standards.
  • Bob Y  •  Elizabeth, New Jersey  •  1 month 0 days ago
    funny how verizon keeps on saying landline service is declining when customers are switching over to fios.
  • EHF  •  Burbank, California  •  3 months ago
    Sprint took on iphone at a $4B cost Oct 2011. Existing customers suffered loss of service due to drain on their leased service network, failure to buildout their service network, and add their own towers. Sprint mistreats customers, does not resolve service and tech issues, batters customers around all over the USA, considers contractual agreements unilateral applying to customers only. Customers must pay the charges dispite insurmountable problems with the phones and service and Sprints failure to provide as contracted placing customers in high risk and dangerous situations with cell phone and service failures. Sprint does not resolve escalated ticket issues and complaints; continues to bill even when service is suspended by the customer and the phone number ported to another service at Sprint employee recommendations and advice. Sprint and other cell phone service providers feel they are untouchable. Time to file complaints with the FTC and FCC as well as the States Attorney Generals Office. Forget the Chamber of Commerce and the BBB which are in the back pocket of these companies. Perhaps the contributions these companies make via lobbyists and political contributions aids them in impunity. The egregious, outrageous, and actionable behaviors and actions of these companies needs to be brought into check by the customers.
 
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