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T-Mobile has a good news, bad news 2012 financial report

News by Andrew Kameka on Thursday February 28, 2013.

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T-Mobile parent company Deutsche Telekom today reported its 2012 financial earnings, and the company finally had some good news to report for its U.S. division. Customer numbers increased for the first time since 2009, but that wasn't exactly cause for celebration. T-Mobile USA now has 33.4 million customers, a 200,000-person increase year-over-year. Unfortunately, the bulk of those increases were from a net gain of 1 million prepaid customers. Postpaid (contract) subscribers, which are more valuable to the company, actually fell by "around 2 million" last year.

T-Mobile reports that its revenue declined 4.1 percent in 2012, but it remains optimistic that its financial position will improve in 2013 thanks to the introduction of Apple products later this year. T-Mobile also points out that its Value plans, which enable customers to pay full price for a smartphone in exchange for a lower monthly rate, are gaining traction with customers. About 30 percent of contract customers are on value plans, and the carrier says it is "enjoying great success" with the initiative.

Optimism seems warranted considering that T-Mobile has managed to at least slow down the pace of customers leaving. The carrier blamed the lack of an iPhone for its previous troubles, so the new Value Plan options paired with Apple's flagship smartphone might lead to more progress towards T-Mobile's recovery.

source: T-Mobile

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Andrew Kameka
Andrew is based in Miami, Florida.

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