Final 2nd Quarter Carrier Results

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SMS - 10 Aug 2006 07:55 GMT

T-Mobile reported on August 10th (in Europe) so here are the final
statistice for the five largest U.S. wireless carriers.

Subscribers (millions)
1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006
Alltel 8.8 9.1 10.4 10.6 10.8 11.1
Cingular 50.5 51.6 52.3 54.1 55.8 57.3
Sprint 43.0 44.4 45.6 47.6 51.0 51.7
T-Mobile 18.3 19.2 20.3 21.7 22.7 23.3
Verizon 45.5 47.4 49.3 51.3 53.0 54.8
Total 166.1 171.7 177.9 185.3 193.3 198.2

Net Additions (millions)
1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006
Alltel 0.30 1.30 0.15 0.17 0.27
Cingular 1.10 0.70 1.80 1.70 1.50
Sprint 1.40 1.22 1.99 3.40 0.70
T-Mobile 0.86 1.10 1.40 1.00 0.61
Verizon 1.90 1.90 2.00 1.70 1.80

Market Share
1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006
Alltel 5.30% 5.30% 5.85% 5.74% 5.59% 5.59%
Cingular 30.40% 30.05% 29.40% 29.19% 28.87% 28.91%
Sprint 25.88% 25.86% 25.64% 25.68% 26.38% 26.09%
T-Mobile 11.04% 11.18% 11.41% 11.71% 11.74% 11.76%
Verizon 27.39% 27.61% 27.71% 27.68% 27.42% 27.65%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Market Share Change
2Q2005 3Q2005 4Q2005 1Q2006 2Q2006
Alltel 0.00% 0.55% -0.11% -0.15% 0.00%
Cingular -0.34% -0.66% -0.21% -0.32% 0.05%
Sprint -0.02% -0.22% 0.04% 0.70% -0.30%
T-Mobile 0.14% 0.23% 0.30% 0.03% 0.01%
Verizon 0.22% 0.10% -0.03% -0.26% 0.23%

ARPU
1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006
Alltel 48.94 50.55 53.78 52.13 50.9 52.54
Cingular 49.59 50.43 49.65 48.86 48.48 48.84
Sprint 61.00 62.00 65.00 63.00 62.00 61.00
T-Mobile 54.00 54.00 53.00 52.00 51.00 52.00
Verizon 49.03 50.34 50.13 49.36 48.67 49.71

Churn
1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006
Alltel 1.7% 2.0% 1.9% 2.2% 1.7% 1.9%
Cingular 2.2% 2.2% 2.3% 2.1% 1.9% 1.7%
Sprint 2.5% 2.2% 2.1% 2.1% 2.1% 2.1%
T-Mobile 2.3% 2.3% 2.4% 2.3% 2.1% 2.2%
Verizon 1.3% 1.2% 1.3% 1.2% 1.2% 1.1%

As you can see, Verizon is the only carrier that is really doing well by
all metrics. Verizon has the lowest churn, the highest number of net
additions, an increasing ARPU, and a big increase in market share.

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user@domain.invalid - 10 Aug 2006 22:27 GMT

> T-Mobile reported on August 10th (in Europe) so here are the final
> statistice for the five largest U.S. wireless carriers.

> As you can see, Verizon is the only carrier that is really doing well by
> all metrics. Verizon has the lowest churn, the highest number of net
> additions, an increasing ARPU, and a big increase in market share.

How about profit for each company? To me that is the most important number.

-Jason

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SMS - 11 Aug 2006 00:14 GMT

>> T-Mobile reported on August 10th (in Europe) so here are the final
>> statistice for the five largest U.S. wireless carriers.
[quoted text clipped - 5 lines]
> How about profit for each company? To me that is the most important
> number.

It's not possible to know the profits of the wireless portion of
carriers like Cingular and Verizon.

The accepted metrics are net additions, churn, ARPU, and market share,
as well as the trends for each of those metrics over time. And of course
all the metrics need to be looked at simultaneously, since a carrier
could drop their pants on price to increase net additions and market
share, or give away the store by their retention department offering
unprofitable deals to reduce churn.

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John L - 11 Aug 2006 14:59 GMT

>> How about profit for each company? To me that is the most important
>> number.
>
>It's not possible to know the profits of the wireless portion of
>carriers like Cingular and Verizon.

I don't see why not.

Cingular is a pure wireless operator and it files 10K and 10Q with the
SEC even though it is owned by T and BLS. The latest 10Q says that
for the first six months of 2006 they had revenue of $18.2 billion,
operating income of $1.8M, and net income of $894M, with most of the
difference between the last two being interest expense and income
taxes. Compared to the first six months of last year, operating
income tripled and net income swung from loss to profit.

VZW is also a pure wireless operator, a partership between Verizon and
Vodafone that also files 10K and 10Q. Its latest 10Q says that for
the first six months of 2006 revenue was $18 billion, operating income
$4.5G, net income $3.7B, all somewhat better than last year.

Regards,
John Levine, johnl@iecc.com, Primary Perpetrator of "The Internet for Dummies",
Information Superhighwayman wanna-be, http://www.johnlevine.com, Mayor
"More Wiener schnitzel, please", said Tom, revealingly.

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Isaiah Beard - 11 Aug 2006 18:41 GMT

> I don't see why not.
>
[quoted text clipped - 10 lines]
> the first six months of 2006 revenue was $18 billion, operating income
> $4.5G, net income $3.7B, all somewhat better than last year.

Interesting. Can you post a link to these 10-K and 10-Q's?

Signature

E-mail fudged to thwart spammers.
Transpose the c's and a's in my e-mail address to reply.

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John L - 12 Aug 2006 01:35 GMT

>Interesting. Can you post a link to these 10-K and 10-Q's?

I found them each in about 30 seconds on the Cingular and VZW web sites.

All SEC filings are available at http://edgar.sec.gov

R's,
John

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Larry - 11 Aug 2006 12:45 GMT

SMS <scharf.steven@geemail.com> wrote in news:44dad875$0$96151
$742ec2ed@news.sonic.net:

> Subscribers (millions)
> 1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006
[quoted text clipped - 4 lines]
> Verizon 45.5 47.4 49.3 51.3 53.0 54.8
> Total 166.1 171.7 177.9 185.3 193.3 198.2

I just KNEW there was a reason why Alltel is never busy or drops calls!

I must have the cell almost to my self!

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