T-Mobile USA data revenues top $1 billion in Q4

Facing escalating pressures from rivals Verizon Wireless, AT&T and Sprint, T-Mobile USA reported fourth-quarter net income of $306 million, down from $417 million in Q3 and off from $483 million a year ago. Service revenues for Q4 totaled $4.65 billion, down from $4.73 billion in the third quarter and $4.90 billion a year ago--T-Mobile USA blamed the sequential and year-over-year decline on changes in its customer mix, including an increase in wholesale customers. In all, T-Mobile USA served 33.8 million customers at the end of 2009, up from 33.4 million quarter-over-quarter and 32.8 million year-over-year.

T-Mobile USA's data services revenue topped $1.03 billion in Q4 2009, representing 22.2 percent of blended ARPU or $10.20 per customer, up from 21.1 percent/$10.00 per customer in Q3 and 18.5 percent/$9.30 in Q4 2008. T-Mobile USA adds that data services revenue grew 19 percent in 2009 compared to 2008, with 3.9 million 3G-capable converged devices now running on its network, a jump of almost 40 percent from the third quarter of 2009. The operator notes that the increase of 3G-capable converged devices and the continued expansion and upgrade of its 3G network is galvanizing Internet access revenue growth via the increasing adoption of 3G data plans. In addition, subscribers are migrating from usage-based messaging plans towards unlimited plans--T-Mobile USA customers transmitted 77 billion text messages in the fourth quarter, compared to 75 billion in the previous quarter and 57 billion in the fourth quarter of 2008.

In related T-Mobile USA news, parent firm Deutsche Telekom chief financial officer Timotheus Hoettges tells Dow Jones Newswires that it is evaluating its U.S. alternatives, but no decision has been made. "An initial public offering for T-Mobile could be an option, but it's not necessary," Hoettges said, confirming that Deutsche Telekom talked recently to banks about T-Mobile USA but adding "this is day to day business" and that no investment bank has been mandated to spin off or float its American unit.

For more on T-Mobile USA's Q4 results:
- read this release

For more on the Q4 earnings season:
- check out our complete coverage here

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