Customers Keep Leaving T-Mobile USA

Subscriber defections will not relent at T-Mobile USA.

T-Mobile USA lost 205,000 customers in the second quarter, a far worse outcome than its 50,000 losses in the year ago.

Customers who have purchased services under a contract with the nation’s fourth-largest wireless provider have been leaving the company in droves for other providers. T-Mobile USA lost 557,000 branded contract customers in the most recent quarter. Combined with its first-quarter results (510,000 losses), T-Mobile has seen its base of contract customers shrink by more than 1 million through the first half of the year.

The prepaid business helped soften the blow, as T-Mobile USA brought on board 227,000 branded prepaid subscribers.

T-Mobile USA, which is owned by Deutsche Telekom AG, ended the quarter with 24.1 million contract customers and 9.1 million prepaid customers.

Its contract base is down 7 percent year over year while its prepaid accounts have risen 16 percent.

T-Mobile USA currently serves 33.17 million customers. That is just a little more than one-third of the retail customer base (94.2 million customers) at Verizon Wireless, the biggest U.S. mobile-phone carrier.  

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