T-Mobile USA Lost 706,000 Contract Customers Last Quarter; Blames It on iPhone 4S Launch

T-Mobile USA posted revenues of $5.2 billion and OIBDA of $1.4 billion in the fourth quarter of 2011, compared to revenues of $5.3 billion and OIBDA of $1.37 billion in the fourth quarter of 2010.

T-Mobile USA also lost a whopping 706,000 branded contract customers in the last quarter, which it has blamed on the launch of Apple's iPhone 4S. It was the first time since Apple launched the iPhone that it was available on three major U.S. carriers.

Here's a snippet from T-Mobile's press release where it has blamed iPhone 4S for its disappointing results:

Strong adjusted OIBDA and prepaid performance; contract business negatively impacted in the fourth quarter of 2011 by iPhone 4S launches by three nationwide competitors [..]

Branded contract losses improved through the third quarter of 2011, however the launch of the iPhone 4S reversed this trend to a branded contract customer loss of 706,000 in the fourth quarter of 2011 [..]

Sequentially, the decline in branded net contract customers was driven primarily by higher branded contract deactivations as a result of the launch of the iPhone 4S by three nationwide competitors in mid-October. [..]

Sequentially and year-on-year contract churn was negatively impacted by competitors’ launches of the iPhone 4S, which is not offered by T-Mobile USA. [..]   

Philipp Humm CEO and President of T-Mobile USA said:

“However, not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011.  In 2012 and 2013, T-Mobile USA will invest to get the business back to growth, including an incremental $1.4 billion investment in its network modernization initiative, which will total a $4 billion investment over time.”

There may be still some hope for T-Mobile USA in 2012 as Apple's sixth generation iPhone is widely rumored to support T-Mobile's 3G network.

[via T-Mobile]