T-Mobile loses contract customers, gains plenty of prepaid customers

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T-Mobile USA released its first quarter 2011 results today. T-Mobile is still in fourth place behind Verizon, Sprint and AT&T, but could shoot straight to the top if its merger with AT&T is approved. Deutsche Telekom CEO Rene’ Obermann said in a press release that until that deal is complete, T-Mobile USA will continue to “compete aggressively” in the United States. It’s going to need that fire because T-Mobile USA is losing its contract customers.

In the first quarter of 2011, T-Mobile has 33.63 million customers. During the fourth quarter of 2010, T-Mobile had 33.73 million customers. This loss is primarily due to customers jumping ship after their contracts are up. T-Mobile had a net customer loss of 471,000 as opposed to losing 318,000 net contract customers during the last few months of 2010. T-Mobile blamed “competitive pressures” on these losses.

T-Mobile, the company who offered the first Android smartphone in the U.S., has been left behind by companies such as Verizon and Sprint who are constantly releasing Android phones with the latest technology. T-Mobile’s monthly prices may be lower than competitors, but its smartphone selection is lacking in comparison.

T-Mobile is doing a lot better with its prepaid offerings. 372,000 new customers jumped on prepaid plans in the first quarter of 2011. That’s compared to just 41,000 during the first quarter of 2010.

It will be upgrading a couple of its prepaid monthly plans on May 22.

Read [Yahoo Finance]

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