T-Mobile USA Reports First Quarter 2006 Results.BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash. -- T-Mobile USA (NYSE NYSE See: New York Stock Exchange :DT): --Over 1 million net new customers added in Q1 2006 --$1.1 billion in Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Before Depreciation and Amortization (OIBDA OIBDA Operating Income Before Depreciation & Amortization ) in Q1 2006, a 34% increase over Q1 2005 --Reduction in postpay churn churn: see butter. to 2.1%, from 2.3% in the fourth quarter of 2005 --T-Mobile achieves top ranking in four separate J.D. Power and Associates surveys --Continued investment in network quality -- 3,700 new cell sites on air over the past 12 months In the first quarter of 2006 T-Mobile USA added 1.04 million net new customers, up from 957,000 in the first quarter of 2005, and lower than the 1.39 million net customers added in the fourth quarter of 2005 primarily due to seasonal impacts. Postpay customers made up 70% of the first quarter customer growth, up from 66% in the fourth quarter of 2005, and comprised 84% of T-Mobile USA's total customer base at March 31, 2006. Postpay churn fell to a record low 2.1% in the first quarter of 2006, down from 2.3% in the fourth quarter of 2005 and the first quarter of 2005. Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. churn was 5.8% in the first quarter of 2006, compared
to 6.6% in the fourth quarter of 2005 and 6.4% in the first quarter of
2005. Blended blend v. blend·ed or blent , blend·ing, blends v.tr. 1. To combine or mix so that the constituent parts are indistinguishable from one another: churn, including both postpay and prepaid customers, was 2.7% in the first quarter of 2006, down from 2.9% in the fourth quarter of 2005 and 2.8% in the first quarter of 2005. "We started the year strong, adding over one million high quality new customers," said T-Mobile USA President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Dotson. "T-Mobile customer loyalty also continues to increase, resulting in record low churn aided by the benefits of ever increasing network quality improvements -- while continuing to reap the benefits of a 56% expansion in our coverage footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. last year." Rene RENE Recycling Network Europe RENE Rocket Engine Nozzle Ejector Obermann Obermann was a rank of the German Schutzstaffel which was used between the years 1942 and 1945. Translated as “Senior Member”, the rank of Obermann was exclusive to the Allgemeine-SS and was created as an equivalent to the Waffen-SS , CEO of T-Mobile International and member of the Board of Management of Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. (NYSE:DT), stated, "T-Mobile USA again delivered strong results and is a key driver of growth for the mobile segment and Deutsche Telekom as a whole. Together with the U.S. business, T-Mobile International's customer base is now approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 88 million customers worldwide. Growing the business to this scale provides strong leverage in terms of both size and expertise to compete effectively in the wireless market." T-Mobile USA's commitment to achieving excellence in all facets of the customer experience was again recognized during the quarter in four separate J.D. Power and Associates surveys. T-Mobile USA ranked highest in overall customer satisfaction among wireless carriers for the third consecutive reporting period, achieved highest ranking in Wireless Customer Care for the third reporting period in a row, was ranked highest, or tied for highest, in three of the six regions surveyed in the 2006 Wireless Call Quality Performance Study and earned highest honors for wireless retail service. T-Mobile USA reported OIBDA of $1.10 billion in the first quarter of 2006, in line with $1.11 billion in the fourth quarter of 2005 and up from $826 million in the first quarter of 2005. T-Mobile USA's net income for the first quarter of 2006 was $241 million, down from $2.99 billion in the fourth quarter of 2005 and up from $103 million in the first quarter of 2005. Net income in the fourth quarter of 2005 included a $2.6 billion non-cash income tax benefit from the recognition of net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry forwards. T-Mobile USA service revenues, consisting of postpay, prepaid, roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. and other service revenues, were $3.39 billion in the first quarter of 2006, up from $3.26 billion in the fourth quarter of 2005 and $2.85 billion in the first quarter of 2005. Other revenues were $198 million in the first quarter of 2006, down from $213 million in the fourth quarter of 2005 and $252 million in the first quarter of 2005. Other revenues include Wi-Fi (WIreless-FIdelity) A logo from the Wi-Fi Alliance that certifies network devices comply with the IEEE 802.11 wireless Ethernet standards. In the early 2000s, Wi-Fi/802.11 became widely used (initially 802.11b, then 802. revenues, co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time , and wholesale revenues from the usage of our network in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of by customers of Cingular Wireless LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Cingular"). The sequential One after the other in some consecutive order such as by name or number. decrease in other revenues in the first quarter of 2006 reflects the ongoing migration of Cingular's customers to their network following the dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of our network sharing venture in early 2005. Total revenues, including service, equipment, and other revenues were $4.04 billion in the first quarter of 2006, up from $3.95 billion in the fourth quarter of 2005 and $3.44 billion in the first quarter of 2005. Average Revenue Per User ("ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. " as defined in note 1 to the Selected Data, below) was $51 in the first quarter of 2006, down from $52 in the fourth quarter of 2005 and $54 in the first quarter of 2005. The sequential decrease in ARPU related primarily to the decrease in prepaid ARPU and the increasing share of prepaid customers in the total customer base. Data services revenue from postpay and prepaid customers continued to grow, reaching a total of $341 million in the first quarter of 2006. Data revenues, which are a component of service revenues, represented 10.1% of blended ARPU, or $5.12 per customer, in the first quarter of 2006, compared to 9.1%, or $4.77, in the fourth quarter of 2005 and 6.9%, or $3.71, in the first quarter of 2005. A significant contributor to the growth in data services revenue was a net increase in converged device A converged device combines the functions of others. Examples
blackberry , T-Mobile Sidekick The first popular popup program for DOS PCs, introduced by Borland in 1984. Sidekick included a calculator, notepad, calendar, phone dialer and ASCII table and popularized the concept of a terminate and stay resident (TSR) utility. , and the recently launched T-Mobile SDA SDA abbr. specific dynamic action Serotonin dopamine antagonist (SDA) The newer second-generation antipsychotic drugs, also called atypical antipsychotics. and MDA (1) (Monochrome Display Adapter) The first IBM PC monochrome video display standard for text. Due to its lack of graphics, MDA cards were often replaced with Hercules cards, which provided both text and graphics. See PC display modes and Hercules Graphics. devices. Continued strong growth in messaging (both SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. and MMS (Multimedia Messaging Service) An enhanced transmission service that enables graphics, video clips and sound files to be transmitted via cellphones. Developed as part of the 3GPP project, MMS phones are generally backward compatible with SMS and EMS. ) also contributed to the increase in data ARPU. The total number of SMS and MMS messages increased to 6.9 billion in the first quarter of 2006, compared to 5.4 billion in the fourth quarter of 2005 and 3.6 billion in the first quarter of 2005. The average cost of acquiring a customer, Cost Per Gross Add ("CPGA (Ceramic PGA) See PGA. CPGA - Ceramic Pin Grid Array ", as defined in note 3 to the Selected Data, below) was $275 in the first quarter of 2006, up from $264 in the fourth quarter of 2005 and down from $357 in the first quarter of 2005. Compared to the fourth quarter of 2005 the increase in CPGA is primarily due to the seasonally lower gross additions in the first quarter versus the fourth quarter of the year. The average cash cost of serving customers, Cash Cost Per User ("CCPU CCPU Continuous Computing Corporation (stock symbol) CCPU Cash Cost Per User (Sprint) CCPU China Criminal Police University CCPU Cryptographic Central Processing Unit ", as defined in note 2 to the Selected Data, below), was $25.66 per customer per month in the first quarter of 2006, up from $24.32 in the fourth quarter of 2005, and down from $26.48 in the first quarter of 2005. The sequential increase in CCPU in the first quarter of 2006 was due to a number of factors, including increased customer retention spending and higher network operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to support the expanded network. Capital expenditures were $770 million in the first quarter of 2006, compared with $807 million in the fourth quarter of 2005 and $376 million in the first quarter of 2005. (Capital expenditures in the first quarter of 2005 excluded $2.5 billion of expenditures related to the acquisition of Cingular's California network and additional spectrum after the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the network sharing venture at the beginning of 2005.) As part of its ongoing commitment to network coverage and quality, T-Mobile USA added approximately 700 new cell sites in the first quarter of 2006, bringing the total number of cell sites to approximately 33,600. This press release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Reconciliations from the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below following Selected Data and the financial statements. T-Mobile USA, Inc. ("T-Mobile USA") is the U.S. operation of T-Mobile International AG & Co. KG ("T-Mobile International"), the mobile communications subsidiary of Deutsche Telekom AG ("Deutsche Telekom") (NYSE:DT). In order to provide comparability with the results of other U.S. wireless carriers all financial amounts are in US dollars and are based on accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ("GAAP"). T-Mobile USA results are included in the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports financial results in accordance with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ).
SELECTED DATA FOR T-MOBILE USA
(`000) Q1 06 YE 05 Q4 05 Q3 05 Q2 05 Q1 05
----------------------------------------------------------------------
Covered population 234,000 233,000 233,000 232,000 232,000 229,000
----------------------------------------------------------------------
Customers, end of
period 22,725 21,690 21,690 20,302 19,243 18,271
----------------------------------------------------------------------
Thereof postpay
customers 19,149 18,424 18,424 17,512 16,796 16,115
----------------------------------------------------------------------
Thereof prepaid
customers 3,576 3,266 3,266 2,790 2,447 2,156
----------------------------------------------------------------------
Net customer additions 1,035 4,376 1,388 1,059 972 957
----------------------------------------------------------------------
----------------------------------------------------------------------
Minutes of use/post
pay customer/month 1,013 963 985 985 960 921
----------------------------------------------------------------------
Postpay churn 2.1% 2.3% 2.3% 2.4% 2.3% 2.3%
----------------------------------------------------------------------
Prepaid churn 5.8% 6.6% 6.6% 6.6% 6.4% 6.4%
----------------------------------------------------------------------
Blended churn 2.7% 2.9% 2.9% 2.9% 2.8% 2.8%
----------------------------------------------------------------------
($ / month)
----------------------------------------------------------------------
ARPU (blended)(1) 51 53 52 53 54 54
----------------------------------------------------------------------
ARPU (postpay) 54 55 54 55 55 54
----------------------------------------------------------------------
ARPU (prepaid) 22 25 24 24 27 28
----------------------------------------------------------------------
Cost of serving
(CCPU)(2) 25.66 25.23 24.32 24.65 25.66 26.48
----------------------------------------------------------------------
Cost per gross add
(CPGA)(3) 275 297 264 271 310 357
----------------------------------------------------------------------
($ million)
----------------------------------------------------------------------
Total revenues 4,039 14,806 3,953 3,802 3,614 3,437
----------------------------------------------------------------------
Service revenues(1) 3,389 12,308 3,261 3,153 3,040 2,854
----------------------------------------------------------------------
OIBDA(4) 1,103 4,185 1,112 1,166 1,081 826
----------------------------------------------------------------------
OIBDA margin (5) 31% 32% 32% 34% 33% 27%
----------------------------------------------------------------------
Capital expenditures 770 5,045 807 585 815 2,838
----------------------------------------------------------------------
Cell sites on-air 33,600 32,900 32,900 31,800 30,900 29,900
----------------------------------------------------------------------
Since all companies do not calculate these figures in the same
manner, the information contained in this press release may not be
comparable to similarly titled measures reported by other companies.
(1) Average Revenue Per User ("ARPU") represents the average monthly
service revenue we earn from our customers. ARPU is calculated by
dividing service revenues for the specified period by the average
customers during the period, and further dividing by the number of
months in the period. We believe ARPU provides management with
useful information to evaluate the recurring revenues generated
from our customer base.
Service revenues include postpay, prepaid, and roaming and other
service revenues, and do not include equipment sales and other
revenues. Revenues from our Wi-Fi business, co-location rental
income, and revenues for network usage by Cingular customers who
have not yet transitioned from the former joint venture networks
in California, Nevada, and New York, are therefore not included in
ARPU. The joint venture was terminated at the beginning of 2005.
(2) The average cash cost of serving customers, or Cash Cost Per User
("CCPU") is a non-GAAP financial measure and includes all network
and general and administrative costs as well as the subsidy loss
unrelated to customer acquisition. Subsidy loss unrelated to
customer acquisition includes upgrade handset costs offset by
upgrade equipment revenues and other related direct costs. This
measure is calculated as a per month average by dividing the total
costs for the specified period by the average total customers
during the period and further dividing by the number of months in
the period. We believe that CCPU, which is a measure of the costs
of serving a customer, provides relevant and useful information
and is used by our management to evaluate the operating
performance of our business.
(3) Cost Per Gross Add ("CPGA") is a non-GAAP financial measure and is
calculated by dividing the costs of acquiring a new customer,
consisting of customer acquisition costs plus the subsidy loss
related to customer acquisition for the specified period, by gross
customers added during the period. Subsidy loss related to
customer acquisition consists of costs directly incurred to
acquire new customers -- such as handset and accessory costs --
offset by related revenues. We believe that CPGA, which is a
measure of the cost of acquiring a customer, provides relevant and
useful information and is used by our management to evaluate the
operating performance of our business.
(4) OIBDA is a non-GAAP financial measure, which we define as
operating income before depreciation and amortization. In a
capital-intensive industry such as wireless telecommunications, we
believe OIBDA, as well as the associated percentage margin
calculation, to be meaningful measures of our operating
performance. OIBDA should not be construed as an alternative to
operating income or net income as determined in accordance with
GAAP, as an alternative to cash flows from operating activities as
determined in accordance with GAAP or as a measure of liquidity.
We use OIBDA as an integral part of our planning and internal
financial reporting processes, to evaluate the performance of our
senior management and to compare our performance with that of many
of our competitors. We believe that operating income is the
financial measure calculated and presented in accordance with GAAP
that is the most directly comparable to OIBDA.
(5) OIBDA margin is a non-GAAP financial measure, which we define as
OIBDA (as described in note 4 above) divided by total revenues
less equipment sales.
T-MOBILE USA
Condensed Consolidated Balance Sheets
(dollars in millions)
(unaudited)
Mar. 31, Dec. 31,
2006 2005
-----------------
ASSETS
Current assets:
Cash and cash equivalents.....................$ 44 $ 57
Accounts receivable, net of allowance for
doubtful accounts of $141 and $151,
respectively................................. 1,992 2,116
Accounts receivable from affiliates........... 678 188
Inventory..................................... 462 409
Current portion of net deferred tax assets.... 283 275
Other current assets.......................... 433 437
-----------------
3,892 3,482
-----------------
Property and equipment, net of accumulated
depreciation of $5,693 and $5,134, respectively.... 10,751 10,805
Goodwill............................................ 10,701 10,701
Spectrum licenses................................... 11,509 11,510
Other intangible assets, net of accumulated
amortization of $329 and $282, respectively........ 194 241
Investments in and advances to unconsolidated
affiliates......................................... 6 5
Other assets and investments........................ 223 248
-----------------
$ 37,276 $ 36,992
=================
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable..............................$ 887 $ 941
Accrued liabilities........................... 1,289 1,134
Deferred revenue.............................. 372 373
Current portion of capital lease.............. 1 1
Construction accounts payable................. 450 724
-----------------
Total current liabilities................. 2,999 3,173
-----------------
Long-term payables to affiliates.................... 6,453 6,457
Deferred tax liabilities............................ 1,072 906
Other long-term liabilities......................... 1,747 1,697
-----------------
Total long-term liabilities other
than preferred stock..................... 9,272 9,060
Voting preferred stock.............................. 5,000 5,000
-----------------
Total long-term liabilities............... 14,272 14,060
-----------------
Minority interest in equity of consolidated
subsidiaries....................................... 70 65
Commitments and contingencies
Shareholder's equity:
Common stock.................................. 39,452 39,452
Accumulated deficit........................... (19,517) (19,758)
-----------------
Total shareholder's equity................... 19,935 19,694
-----------------
$37,276 $36,992
=================
T-MOBILE USA
Condensed Consolidated Statements of Operations
(dollars in millions)
(unaudited)
Quarter Quarter Quarter
Ended Ended Ended
Mar. 31, Dec. 31, Mar. 31,
2006 2005 2005
-------------------------------
Revenues:
Postpay..............................$ 3,038 $ 2,920 $2,567
Prepaid.............................. 229 213 167
Roaming and other services........... 122 128 120
Equipment sales...................... 452 479 331
Other................................ 198 213 252
-------------------------------
Total revenues.................... 4,039 3,953 3,437
-------------------------------
Operating expenses:
Network.............................. 849 749 681
Cost of equipment sales.............. 737 738 661
General and administrative........... 661 598 558
Customer acquisition................. 689 756 711
Depreciation and amortization........ 594 567 519
-------------------------------
Total operating expenses.......... 3,530 3,408 3,130
-------------------------------
Operating income....................... 509 545 307
Other income (expense):
Interest expense..................... (111) (97) (123)
Equity in net losses of
unconsolidated affiliates........... - 1 -
Interest income and other, net....... 9 21 (51)
-------------------------------
Total other income (expense)......... (102) (75) (174)
-------------------------------
Income before income taxes............. 407 470 133
Income tax (expense) benefit........... (166) 2,518 (30)
-------------------------------
Net income.............................$ 241 $ 2,988 $ 103
===============================
T-MOBILE USA
Condensed Consolidated Statements of Cash Flows
(dollars in millions)
(unaudited)
Quarter Quarter
Ended Ended
Mar. 31, Mar. 31,
2006 2005
------------------
Operating activities:
Net income........................................ $ 241 $ 103
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization.................. 594 519
Income tax expense............................. 166 30
Amortization of debt discount and premium, net. (9) (8)
Stock-based compensation....................... - 1
Allowance for bad debts........................ (10) 4
Deferred rent.................................. 39 40
Loss provision on network transaction.......... - 32
Other, net..................................... 15 22
Changes in operating assets and liabilities:
Accounts receivable.......................... (356) (173)
Inventory.................................... (53) 155
Other current assets......................... 18 2,320
Accounts payable............................. 50 82
Accrued liabilities.......................... 168 101
------------------
Net cash provided by operating activities....... 863 3,228
------------------
Investing activities:
Purchases of property and equipment............... (770) (376)
Joint venture and network transaction with
Cingular......................................... - (2,282)
Acquisitions spectrum licenses and wireless
properties....................................... - (180)
Proceeds on disposal of assets.................... 1 -
------------------
Net cash used in investing activities........... (769) (2,838)
------------------
Financing activities:
Long-term debt repayments to affiliates........... - (340)
Long-term debt borrowings from affiliates......... - 100
Change in minority interest....................... - 62
Book overdraft.................................... (107) (117)
------------------
Net cash used in financing activities........... (107) (295)
------------------
Change in cash and cash equivalents................. (13) 95
Cash and cash equivalents, beginning of period...... 57 182
------------------
Cash and cash equivalents, end of period............ $ 44 $ 277
==================
T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP
Financial Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)
OIBDA can be reconciled to our operating income as follows:
Q1 YE Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005 2005
--------- ------- ------ ------ ------ -----
OIBDA $ 1,103 $ 4,185 $1,112 $1,166 $1,081 $ 826
Depreciation and
amortization (594) (2,229) (567) (558) (585) (519)
------------------------------------------------
Operating income $ 509 $ 1,956 $ 545 $ 608 $ 496 $ 307
================================================
The following schedule reflects the CPGA calculation and provides a
reconciliation of cost of acquiring customers used for the CPGA
calculation to customer acquisition costs reported on our condensed
consolidated statements of operations:
Q1 YE Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005 2005
--------- ------- ------ ------ ------ -----
Customer acquisition
costs $689 $2,792 $756 $657 $668 $711
Plus: Subsidy loss
Equipment sales (452) (1,529) (479) (414) (305) (331)
Cost of equipment
sales 737 2,622 738 648 575 661
------------------------------------------------
Total subsidy loss 285 1,093 259 234 270 330
------------------------------------------------
Less: Subsidy loss
unrelated to customer
acquisition (200) (629) (171) (133) (153) (172)
------------------------------------------------
Subsidy loss related
to customer
acquisition 85 464 88 101 117 158
------------------------------------------------
Cost of acquiring
customers $774 $3,256 $844 $758 $785 $869
================================================
CPGA ($ / new
customer added) $275 $297 $264 $271 $310 $357
T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)
The following schedule reflects the CCPU calculation and provides a
reconciliation of the cost of serving customers used for the CCPU
calculation to total network costs plus general and administrative
costs reported on our condensed consolidated statements of operations:
Q1 YE Q4 Q3 Q2 Q1
2006 2005 2005 2005 2005 2005
------ ------ ------- ------ ------ ------
Network costs $849 $2,883 $749 $735 $718 $681
General and administrative 661 2,324 598 596 572 558
------------------------------------------
Total network and general
and administrative costs 1,510 5,207 1,347 1,331 1,290 1,239
Plus: Subsidy loss unrelated
to customer acquisition 200 629 171 133 153 172
------------------------------------------
Total cost of serving
customers $1,710 $5,836 $1,518 $1,464 $1,443 $1,411
==========================================
CCPU ($ / customer per
month) $26 $25 $24 $25 $26 $26
About T-Mobile USA: Based in Bellevue, WA, T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. subsidiary of Deutsche Telekom AG (NYSE:DT). T-Mobile USA's GSM/GPRS 1900 voice and data network in the United States reaches over 269 million people, including roaming and other agreements. In addition, T-Mobile USA operates the largest carrier-owned Wi-Fi (802.11b) wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 (WLAN See wireless LAN. WLAN - wireless local area network ) network in the United States, available in more than 7,400 public access locations including Starbucks coffeehouses, Kinko's copy shops, Borders Books and Music, Hyatt Hyatt is an international brand of hotels within the Global Hyatt Corporation that operates numerous properties. Hyatt is a part of the Marmon Group which is owned by Chicago's Pritzker Family. Mark S. Hoplamazian is the current President and CEO of Global Hyatt Corporation. and Accor hotels, selected airports' American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the Admirals Clubs, United Red Carpet carpet or rug, thick fabric, usually woolen (but often synthetic), commonly used today as a floor covering. Carpet Types and Modern Manufactures Clubs, US Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. Clubs and Delta Air Lines Clubs. T-Mobile USA is committed to providing the best value in wireless service through its GET MORE promise to provide customers with more minutes, more features and more service. For more information, visit the company website at www.t-mobile.com. About T-Mobile International: T-Mobile International is one of the world's leading companies in mobile communications. As one of Deutsche Telekom`s (NYSE:DT) three strategic business units, T-Mobile concentrates on the key markets in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the United States.By the end of the first quarter of 2006, approximately 88 million mobile customers were served by companies of the Deutsche Telekom group, all over a common technology platform based on GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. , the world's most successful digital wireless standard. This also makes T-Mobile the only mobile communications provider with a transatlantic service. For more information about T-Mobile International, please visit www.t-mobile.net. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations. |
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