MetroPCS Reports Lower Churn, More Subscribers (PCS, LEAP, VZ, VOD, T)
Wireless phone company MetroPCS Communications Inc. (NYSE: PCS) reports this morning that it added 197,000 net customers in the fourth quarter and about 1.2 million net new subscribers for the full year. The company competes most directly with Leap Wireless…
Wireless phone company MetroPCS Communications Inc. (NYSE: PCS) reports this morning that it added 197,000 net customers in the fourth quarter and about 1.2 million net new subscribers for the full year. The company competes most directly with Leap Wireless International Inc. (NASDAQ: LEAP) for lower value pre-paid subscribers, while Verizon Wireless, a joint venture between Verizon Communications Inc. (NYSE: VZ) and Vodafone Group plc (NASDAQ: VOD), and AT&T Inc. (NYSE: T) chase the post-paid market.
MetroPCS’s churn rate rose year-over-year from 3.5% to 3.7%, but fell sequentially from 4.5%. The company attributed the lower sequential churn rate to its improved network.
MetroPCS ended the year with 9.35 million subscribers, compared with 8.16 million subscribers in 2010. However, in 2010 the company added 1.5 million net new subscribers, compared with 1.2 million in 2011.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.