T-Mobile loses subscribers, smartphone sales fall flat
The long slide of T-Mobile USA continued in the latest quarter, as the country's No. 4 cellphone company lost subscribers and struggled to sign people up for smartphones.
The subsidiary of Germany's Deutsche Telekom AG said that it lost a net 205,000 subscribers in the second quarter, a record for the period. Among phone subscribers under contract, it lost 557,000 subscribers, also the highest number of the second quarter. Phone subscribers on contract-based plans pay the most, and are the bread and butter of large wireless carriers. T-Mobile's revenue from monthly fees on contract service fell 9 percent from a year ago. The larger wireless carriers — Verizon, AT&T and Sprint — all managed to increase this number in the second quarter. Thanks to job cuts, T-Mobile continued to be profitable, with a second-quarter net income of $207 million, nearly flat compared with $212 million a year ago.
Overall revenue fell 3 percent from a year ago to $4.9 billion.