1st Quarter 2006 Carrier Report Discussion

Sprint and Nextel are on many of the same towers. A very large percentage of the sites are also on towers and structures that are not owned by Sprint or Nextel. The leases specify exact numbers of antennas, model numbers and specific frequencies. New leases will have to be done, extra rent paid, and new structural reports etc.

This merger will not allow Sprint and Nextel to go around slapping new equipment up at each others' sites overnight. Even at company owned structures, new paperwork, zoning approvals and engineering work will have to be done prior to adding new equipment. It might take less time than doing a collocation with an outside tower owner, but it won't produce miracles.

There are still the affiliates too. In my region, Horizon and Shentel are the Sprint affiliates and Nextel Partners is iDen. I'm pretty sure none are owned by Sprint-Nextel at this time. If NPI wants to go on a Shentel tower, it's no easier than going on a T-Mobile or Cingular tower.

 

(RTTNews) - Early Thursday, T-Mobile USA, Inc., the U.S. operation of T-Mobile International Group, which is the mobile communications unit of Deutsche Telekom AG (DT | charts | news | PowerRating), reported that first quarter net income climbed from the year ago quarter, on higher postpay and prepaid revenues.

During the first quarter, the company's net income was $241 million, up from $103 million in the prior year quarter, but down from $2.99 billion in the fourth quarter. According to the company, the fourth quarter net income included a $2.6 billion non-cash income tax benefit from the recognition of net operating loss carry forwards.

The company's first quarter total revenues were $4.04 billion, up from $3.44 billion in the first quarter of 2005, and $3.95 billion in the fourth quarter.

T-Mobile USA service revenues, consisting of postpay, prepaid, roaming and other service revenues, were $3.39 billion in the first quarter, compared to $2.85 billion in the previous year. On a segmental basis, postpay revenues for the period climbed to $3.04 billion from $2.57 billion in the prior year quarter. Prepaid revenues rose to $229 million from $167 million a year ago. Revenue from roaming and other services rose to $122 million from $120 million last year. Average revenue per user or ARPU was $51 in the first quarter, down from $54 in the previous year.

T-Mobile USA reported first quarter operating income before depreciation and amortization or OIBDA of $1.10 billion in, up 34% from $826 million last year, but in line with $1.11 billion in the fourth quarter. Operating income for the period rose to $509 million from $307 million a year ago.

The company's capital expenditures were $770 million in the first quarter, compared to $376 million last year.

The company noted that 1.04 million net new customers were added in the first quarter, up from 0.96 million in the year ago quarter, but lower than the 1.39 million net customers added in the fourth quarter, primarily due to seasonal impacts.

DT closed Wednesday's regular trading session down $0.12 or 0.68% at $17.44, on a volume of 1.33 million shares.

http://www.tradingmarkets.com/tm.site/news/BREAKING NEWS/251820/

 

http://biz.yahoo.com/bw/060511/20060510006215.html?.v=1

Here is the full TM release.

Total ARPU down, but postpaid ARPU has been $54 or $55 for the last year. The decrease was b/c of prepay ARPU.

Record low (for TM) postpay churn of 2.1%, prepay churn down 0.8% to 6.6%. Total Churn down to 2.7%

 

2-year contracts!