Bellevue-based T-Mobile USA, the fourth largest U.S. carrier, said it added 980,000 new subscribers during the first quarter for a total of more than 26 million.
T-Mobile CEO Robert Dotson said part of the company’s growth can be attributed to myFaves, a service that gives subscribers unlimited calling to five designated people.
The company, owned by German-based Deutsche Telekom, also reported average revenue per user of $52 during the first quarter and churn of 1.9 percent. During the first quarter, the company’s profit totaled $315 million on revenues of $4.5 billion. In the year-ago period, the company reported profit of $241 million on revenues of $4 billion.
Dotson on the results:
“MyFaves is the most successful offering we’ve had in the history of T-Mobile and it is changing the nature of our business. We continue to add high quality customers to our ranks and myFaves is a key reason why. In the quarter, we added almost one million new customers, of which almost three quarters were again additions to our strong postpay customer base.”
Although T-Mobile USA’s profit gained, it didn’t offset the decrease seen companywide at Deutsche Telekom.
DT said its first-quarter profit dropped 58 percent, as more than half a million German customers canceled DT fixed telephone service in favor of cheaper rivals.
“T-Mobile USA is once again front and center as the leading growth driver for Deutsche Telekom,” said Rene Obermann, Deutsche Telekom CEO. “The U.S. business continues to demonstrate how a committed service culture can play a foundational role in driving our business ever forward.”