T-Mobile USA reports Q4 2011 earnings, will launch LTE network in 2013
In Magenta's first earnings report since the failed AT&T, T-Mobile merger, T-Mobile USA reported losses, but indicated an LTE roll out is coming in 2013
U.S. wireless carrier T-Mobile USA reported today Q4 2011 results with a drop in revenue for the fourth quarter of 2011, compared to a year earlier. The drop in revenue was driven by a loss of 802,000 subscribers causing revenue to fall 3.3% to 20.6%
The nation's fourth-largest carrier is the only major U.S. carrier that does not carry Apple’s iPhone, which it blames for the losses. Total revenues were $5.2 billion in the fourth quarter of 2011, flat with the third quarter and down from $5.4 billion in the fourth quarter of last year.
Prepaid net subscriber additions were 276,000 in the fourth quarter, up from 229,000 net prepaid additions in the fourth quarter of 2010. The carrier also noted that current customers are spending more on data and phones, which is good news for Magenta.
Despite the mixed bag of financials, T-Mobile USA did have some great news to report. Thanks mainly to the AWS spectrum it received from AT&T, Magenta plans to roll out an LTE network in 2013. The carrier plans to spend $4 billion shifting HSPA+3G/4G services on the 1900 MHz band.
With T-Mobile USA moving HSPA+ 3G/4G to 1900 MHz, it becomes much more likely that T-Mobile will carry the iPhone at some point. The iPhone supports 1900 MHz for 3G connectivity. This is just wishful thinking though at this point as everything is up to Apple.
It looks like this time around we at least have some light at the end of the tunnel for T-Mobile USA. I'm sure we'll find out more about their LTE plans in the coming months.
To check out T-Mobile USA's full earnings report head here.