Q2 2005 Wireless Carrier Reports and Discussion

I'm looking forward to hearing from Cingular. This quarter will be interesting. I think that Cingular's churn went up and that Verizon and T-Mobile both snatched a lot of Cingular customers, but I could be wrong. If I had to guess, I'd guess that T-Mobile's net additions are going to be higher for Q2 than before.

 

I agree with Andy on this one.

 

I have to agree as well, just too many network issues with the integration & price increases by Cingular in the last qtr.

 

Well, here it is. At a glance:

- Net subscriber additions of 1.1 million

- 51.6 million cellular/PCS subscribers at quarter's end

- Postpaid monthly subscriber churn down to 1.8 percent

- 90 percent of minutes now on Cingular's GSM network

- 78 percent of customers GSM-equipped

- Converted more than 4 million former AT&T Wireless subscribers to new Cingular plans.

- Revenues were $8.6 billion

- Operating expenses were $8.1 billion

- Operating income was $504 million

- ARPU in the quarter was $50.43, up 1.7 percent from the first quarter



http://www.prnewswire.com/news/inde...STORY=/www/story/07-20-2005/0004070749&EDATE=


I guess we were all proven wrong. Even though net additions were about the same as the first quarter, overall the numbers are better than the first quarter.

But at the pace they are going, I don't know when they are going to finish transitioning all former AWS customers.

 

I was posting the Cingular numbers and link, but Bobo got in there while I was editing my post. One stinkin' minute!

 

Nobody beats the bobo!

 

me too, they need to straighten some things out

 

damn those numbers arent too bad at all

 

Wow, that blew me away from my thoughts, thanks for the post bobolito.

It's interesting to see they have 78% of customers now on GSM vs TDMA, guess there goal of getting the majority of people on GSM is going as planned. And it seems they are going along at 1.25 Million AWE customers being migrated a Qtr. I am sure this is in line with what they were looking for, since they don't want all the Blue customers & TDMA customers migrated too soon/fast, if i remember correctly to prevent network overload. I wonder if they have been slowly shutting down TDMA in certain area's to give them the needed spectrum.

 

Wow, those numbers nearly rocked me off my chair
They are much better than I expected. Even their churn numbers are not as high as I though they would be. I guess all those people complaining about cingular are not actually leaving the company

 

Those numbers also include my parents and siblings. That's 4 lines of service that moved from VZW to Cingular plus a 5th new line.

It didn't save them any money, but my sister has a lot of friends on Cingular and they got 7p nights for $7/month.

 

Deutsche Telekom's (T-Mobile) first half year report is scheduled to be reported on August 11 (with an indication that it was subject to change).


Per:

http://www.telekom3.de/en-p/inve/9-fi/home/finance-calendar-2005-ar.html

 

Most internet reports show Cingular to have 2.2% churn this past quarter.

Cingular's own press release posts 1.8%...( postpay)

Does Cingular always post their churn rates as "postpay" or just this time?

 

They were trying to show the difference between Prepaid & Post Paid churn because they seemed to have a bigger amount or Prepaid customers, mainly TDMA ones that left & I guess they wanted to show the breakdown to make it look more impressive.

As for this time only, they did it last quarter as well.
Per Last quarter the churn was 2.2% with 1.9% being post paid. They didn't report it like this in the 1st Quarter though & they went to a different reporting format this year, in line with other carriers.

 

Most Churn are from Prepay
since they Don't have contracts
and are Not Subject to Termination Fee.

 

Once again Nextel has put up some good consistent numbers. Sprint is taking on a good company here.

 

Looks like Verizon kicked Cingular's butt this time: 1.9 MILLION NET ADDS!

 

How much longer can each carrier keep adding these kinds of numbers each quarter? At some point won't the market reach saturation?

 

Those VZW users hoping for 6pm nights won't get it with record breaking adds like that. LOL.

I don't ever remember them adding that many customers at once. Wow.

http://www.rcrnews.com/news.cms?newsId=23519

 

Found an article related to Verizon's 2nd quarter numbers. As bobolito mentioned, Verizon scored 1.91 million adds for the quarter. Here is the article:

Verizon Gaining on Cingular

 

yeah....right about when it gets to 100%.

Anyway, here it is Verizon!

http://www.prnewswire.com/news/inde...STORY=/www/story/07-26-2005/0004074647&EDATE=

Highlights:
- Wireless Nets Record 1.9 Million New Customers***
- 47.4 million total customers
- Record-low churn of 1.2 percent (post-paid 1.0%)
- Total quarterly revenues of $7.8 billion
- Service revenues were $6.9 billion
- Operating expenses $6.0B
- Operating income margin of 22.7 percent (1.782 billion)
- ARPU $49.42
- 19 million data customers

*** Net customer additions include acquisition of 32,000 subscribers in the first quarter of 2005 and 4,000 subscribers in the second quarter of 2005.

 

Maybe this will encourage Mr. Sigman to lower his prices!

 

[/QUOTE]

ok here's the math:
1.9 - 1.1 = .8
if vzw is gaining by .8 million/yr
and their lead is 4 million.
it will take at least 4+ years.

 

There's only one small problem with your math. That should be 0.8 million PER QUARTER, not per year.

It is easy to figure why Verizon is getting much better numbers now:

- Cingular is more expensive (data and family plans)
- Verizon is simply more reliable in more areas than Cingular
- People believe Verizon is more reliable even in areas where Cingular is better
- Verizon's CS is known to be better than Cingular's
- Cingular is going through some merger pains right now and network reliability is not at its best

Considering everything that's going in Verizon's favor and against Cingular, I think they are both formidable competitors. Now that Sprint, Nextel and T-Mobile are basically forgotten from competition (we gotta admit they aren't making much noise lately), it will be interesting to see how Sprint/Nextel will combine forces and add a twist to the competing duo to become a threesome (oops!) I meant trio of competitors.

 

oh no.
they can do in a year.

 

Remember that 2 years ago the CEO of VZW said that they would in 2 years have a much higher ARPU that most wireless providers. They knew they can't be #1, but they want to be close to number #1. Now they are going in the other direction. :headscrat