|
|
$1.57
billion Operating Income Before Depreciation and Amortization (“OIBDA”) in
the fourth quarter of 2008, up 18% from the fourth quarter of
2007
|
|
|
31%
increase in data services revenue compared to the fourth quarter of
2007
|
|
|
Total
messages carried in the quarter more than doubled compared to the fourth
quarter of 2007
|
|
|
$4.9
billion service revenue in the fourth quarter of 2008, up 12% from the
fourth quarter of 2007
|
|
|
621,000
net new customers added in the fourth quarter of
2008
|
|
|
At
the end of 2008 the 3G network covers 130
cities
|
|
|
T-Mobile
USA reclaims J.D. Power and Associates Award for Wireless Customer Care
Performance
|
|
·
|
In
the fourth quarter of 2008, T-Mobile USA added 621,000 net new customers,
down from 670,000 in the third quarter of 2008, and down from 951,000 in
the fourth quarter of 2007.
|
|
o
|
The
number of net new customer additions was down slightly compared to the
third quarter of 2008 despite higher gross customer
additions. This is primarily due to higher blended churn, as
explained below. Gross customer additions were higher both
sequentially and compared to the fourth quarter of
2007.
|
|
o
|
Contract
customer net additions made up almost 43% of customer growth, compared to
44% in the third quarter of 2008 and 77% in the fourth quarter of
2007.
|
|
o
|
Prepaid
net additions were 355,000 in the fourth quarter of 2008, down from
377,000 in the third quarter of 2008 and up from 218,000 in the fourth
quarter of 2007. The sequential decrease in prepaid net
customer additions was primarily due to seasonally higher prepaid
churn.
|
|
·
|
Contract
customers comprised 82% of T-Mobile USA’s total customer base at December
31, 2008. T-Mobile USA ended 2008 with 32.8 million
customers.
|
|
·
|
Contract
churn was 2.4% in the fourth quarter of 2008, in line with the third
quarter of 2008 and up from 1.8% in the fourth quarter of
2007.
|
|
o
|
Contract
churn continued to be impacted in the fourth quarter of 2008 by customers
coming to the anniversary of their two-year contracts (that were first
introduced in April 2006) and competitive
intensity.
|
|
·
|
Blended
churn, including both contract and prepaid customers, was 3.3% in the
fourth quarter of 2008, up from 3.0% in the third quarter of 2008 and 2.8%
in the fourth quarter of 2007. Blended churn was also impacted by
seasonally higher prepaid churn in the fourth quarter of 2008 compared to
the third quarter of 2008.
|
|
·
|
T-Mobile
USA reported OIBDA of $1.57 billion in
the fourth quarter of 2008, up from $1.53 billion in the third quarter of
2008 and up from $1.33 billion in the fourth quarter of
2007.
|
|
·
|
OIBDA
margin was 31% in the fourth quarter of 2008, in line with the third
quarter of 2008 and up from 30% in the fourth quarter of
2007.
|
|
o
|
The
improvement in OIBDA margin compared to the fourth quarter of 2007 is
primarily due to lower CPGA.
|
|
·
|
Net
income for the fourth quarter of 2008 was $483 million, up from the $442
million in the third quarter of 2008 and $383 million in the fourth
quarter of 2007.
|
|
·
|
Service
revenues (as defined in Note 1 to the Selected Data, below) were $4.90
billion in the fourth quarter of 2008, in line with the third quarter of
2008, and up from $4.37 billion in the fourth quarter of
2007.
|
|
o
|
The
increase in service revenues year over year was primarily due to the
growth in contract customers and the SunCom Wireless
acquisition.
|
|
o
|
Total
revenues, including service, equipment, and other revenues were $5.72
billion in the fourth quarter of 2008, up from $5.51 billion in the third
quarter of 2008 and $5.07 billion in the fourth quarter of
2007.
|
|
o
|
The
sequential growth in total revenues in the fourth quarter of 2008 compared
to the third quarter was due to higher equipment revenues driven by new
devices such as the T-Mobile G1 with
Google.
|
|
o
|
The
acquisition of SunCom contributed $189 million to T-Mobile USA’s total
revenues in the fourth quarter.
|
|
·
|
Blended
Average Revenue Per User (“ARPU” as defined in note 1 to the Selected
Data, below) was $50 in the fourth quarter of 2008, compared to $52 in the
third quarter of 2008 and the fourth quarter of 2007. Rounding
movements account for approximately $1 of the sequential fall in blended
ARPU, and the remaining difference is explained
below.
|
|
·
|
Contract
ARPU was $54 in the fourth quarter of 2008, down from $55 in the third
quarter of 2008 and $56 in the fourth quarter of
2007.
|
|
o
|
The
decrease in contract ARPU sequentially and year over year was primarily
due to lower usage based revenues from contract
customers.
|
|
·
|
Prepaid
ARPU was $23 in the fourth quarter of 2008, down from $24 in the third
quarter of 2008 and higher than $20 in the fourth quarter of
2007.
|
|
o
|
The
decrease quarter over quarter was primarily driven by new customer
additions being added late in the fourth
quarter.
|
|
o
|
The
increase in prepaid ARPU year over year is due to higher ARPU products
such as FlexPaySM
no-contract.
|
|
·
|
Data
services revenue (as defined in Notes 1 and 9 to the Selected Data, below)
was $905 million in the fourth quarter of 2008, representing 18.5% of
blended ARPU, or $9.30 per customer, up from 17.3% of blended ARPU, or
$8.90 per customer in the third quarter of 2008, and 15.8% of blended
ARPU, or $8.20 per customer in the fourth quarter of 2007. Data services
revenue increased 31% in the fourth quarter of 2008 versus the
fourth
|
|
·
|
quarter
of 2007, up from an increase of 28% in the third quarter of 2008 versus
the third quarter of 2007.
|
|
o
|
Growth
in messaging revenue continued to be the most significant driver of data
ARPU, as customers continue to purchase plans that include messaging,
including unlimited voice and data plans. The total number of
messages carried on the T-Mobile USA network increased to 57 billion in
the fourth quarter of 2008, compared to 49 billion in the third quarter of
2008 and 24 billion in the fourth quarter of
2007.
|
|
o
|
Continued
growth in converged device users was another significant driver for
increased data revenues. This includes 3G-enabled devices such
as the T-Mobile G1 and the Samsung BeholdTM.
|
|
o
|
T-Mobile
USA launched web2goSM
in the fourth quarter of 2008, creating an improved Web browsing
experience on select devices.
|
|
·
|
The
average cost of acquiring a customer, Cost Per Gross Add (“CPGA” as
defined in note 4 to the Selected Data, below) was $270 in the fourth
quarter of 2008, down from $290 in the third quarter of 2008 and $300 in
the fourth quarter of 2007.
|
|
o
|
The
decrease in CPGA compared to the third quarter of 2008 is primarily due to
lower commissions and advertising expense along with lower equipment
subsidy loss.
|
|
·
|
The
average cash cost of serving customers, Cash Cost Per User (“CCPU” as
defined in note 3 to the Selected Data, below), was $25 per customer per
month in the fourth quarter of 2008, consistent with the third quarter of
2008 and fourth quarter of 2007.
|
|
·
|
Cash
capital expenditures (see note 7 to the Selected Data below) were $895
million in the fourth quarter of 2008, compared with $956 million in the
third quarter of 2008 and $1.01 billion in the fourth quarter of 2007. For
2008 as a whole, cash capital expenditures amounted to $3.6 billion
compared to $2.7 billion in 2007.
|
|
·
|
Cash
capital expenditures decreased sequentially due to an increase in incurred
capital expenditures being more than offset by payment timing
differences.
|
|
o
|
The
increase in capital expenditures year over year was primarily due to the
construction of the 3G network.
|
|
·
|
T-Mobile
USA continued to improve network coverage in the fourth quarter of 2008,
adding approximately 1,100 new GSM/GPRS/EDGE cell sites, bringing the
total number of cell sites at the end of the quarter to
44,000.
|
|
·
|
T-Mobile
USA continues to invest in the UMTS / HSDPA (3G) network, which now
reaches 107 million people in 130
cities.
|
|
·
|
On
February 4, 2009, T-Mobile USA was ranked highest in wireless customer
care performance by J.D. Power and Associates. Winning this award in 7 of
the last 8 reporting periods continues to demonstrate T-Mobile USA’s
strong and successful focus on customer
service.
|
|
·
|
On
January 22, 2009, Fortune magazine announced that T-Mobile USA was the
first-ever telecommunications company to be ranked in its “100 Best
Companies to Work For” list. “Service is our number one priority at
T-Mobile. And the best way to deliver outstanding service is to create an
environment where our employees can make a meaningful difference for
customers everyday,” said Dotson. “As the first telecommunications service
provider to be included in Fortune’s ‘Best Companies to Work For’, we’re
gratified and honored to be named among these elite
companies.”
|
|
·
|
On
Nov. 20, 2008, T-Mobile USA, introduced web2goSM,
which makes it easier to view and navigate the Web from basic voice phones
and smartphones alike, providing customers with better Web browsing,
improved search with Yahoo! oneSearch™, a customizable home page and a
simplified shopping and download
experience.
|
|
(thousands)
|
Full
Year 2008
|
Q4 08 | Q3 08 | Q2 08 | Q1 08 |
Full
Year 2007
|
Q4
07
|
|||||||||||||||||||||
|
Covered
population8
|
288,000 | 288,000 | 286,000 | 284,000 | 284,000 | 284,000 | 284,000 | |||||||||||||||||||||
|
Customers,
end of period2
|
32,758 | 32,758 | 32,136 | 31,466 | 30,798 | 28,685 | 28,685 | |||||||||||||||||||||
|
Thereof
contract customers
|
26,806 | 26,806 | 26,539 | 26,246 | 25,721 | 23,914 | 23,914 | |||||||||||||||||||||
|
Thereof
prepaid customers
|
5,952 | 5,952 | 5,597 | 5,220 | 5,077 | 4,771 | 4,771 | |||||||||||||||||||||
|
Net
customer additions
|
2,940 | 621 | 670 | 668 | 981 | 3,644 | 951 | |||||||||||||||||||||
|
Acquired
customers
|
1,132 | - | - | - | 1,132 | - | - | |||||||||||||||||||||
|
Minutes
of use/contract customer/month
|
1,150 | 1,130 | 1,140 | 1,170 | 1,150 | 1,130 | 1,120 | |||||||||||||||||||||
|
Contract
churn
|
2.10 | % | 2.40 | % | 2.40 | % | 1.90 | % | 1.70 | % | 1.90 | % | 1.80 | % | ||||||||||||||
|
Blended
churn
|
2.90 | % | 3.30 | % | 3.00 | % | 2.70 | % | 2.60 | % | 2.80 | % | 2.80 | % | ||||||||||||||
|
($)
|
||||||||||||||||||||||||||||
|
ARPU
(blended) 1,
9
|
51 | 50 | 52 | 52 | 51 | 52 | 52 | |||||||||||||||||||||
|
ARPU
(contract)
|
55 | 54 | 55 | 55 | 55 | 57 | 56 | |||||||||||||||||||||
|
ARPU
(prepaid)
|
23 | 23 | 24 | 23 | 22 | 19 | 20 | |||||||||||||||||||||
|
Cost
of serving (CCPU)3
|
25 | 25 | 25 | 25 | 25 | 25 | 25 | |||||||||||||||||||||
|
Cost
per gross add (CPGA)4
|
290 | 270 | 290 | 320 | 300 | 300 | 300 | |||||||||||||||||||||
|
($
million)
|
||||||||||||||||||||||||||||
|
Total
revenues
|
21,885 | 5,722 | 5,506 | 5,470 | 5,187 | 19,288 | 5,068 | |||||||||||||||||||||
|
Service
revenues1,
9
|
19,242 | 4,904 | 4,911 | 4,854 | 4,573 | 16,892 | 4,371 | |||||||||||||||||||||
|
OIBDA5
|
6,123 | 1,568 | 1,531 | 1,583 | 1,441 | 5,350 | 1,327 | |||||||||||||||||||||
|
OIBDA
margin 6
|
31 | % | 31 | % | 31 | % | 32 | % | 31 | % | 31 | % | 30 | % | ||||||||||||||
|
Capital
expenditures7
|
3,603 | 895 | 956 | 1,062 | 690 | 2,677 | 1,009 | |||||||||||||||||||||
|
Cell
sites on-air10
|
44,000 | 44,000 | 42,900 | 42,000 | 41,000 | 37,900 | 37,900 | |||||||||||||||||||||
|
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 revenues generated from our customer
base.
|
|
2
|
A
customer is defined as a SIM card with a unique mobile identity number
which generates revenue. Contract customers and prepaid customers include
FlexPay customers depending on the type of rate plan selected. FlexPay
customers with a contract are included in contract customers, and FlexPay
customers without a contract are included in prepaid
customers.
|
|
3
|
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 for existing customers 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.
|
|
4
|
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 primarily of the
excess of handset and accessory costs over related revenues incurred to
acquire new customers. 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.
|
|
5.
|
Operating
Income Before Interest, Depreciation and Amortization (“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 business by 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. OIBDA is not adjusted for integration costs of
SunCom.
|
|
6.
|
OIBDA
margin is a non-GAAP financial measure, which we define as OIBDA (as
described in note 5 above) divided by total revenues less equipment
sales.
|
|
7
|
Capital
expenditures consist of amounts paid by T-Mobile USA for purchases of
property and equipment.
|
|
8
|
The
covered population statistic represents T-Mobile USA’s GSM / GPRS / EDGE
1900/ UMTS voice and data network coverage, combined with roaming and
other agreements.
|
|
9
|
Data
ARPU is defined as total data revenues divided by average total customers
during the period. Total data revenues include data revenues from contract
customers, prepaid customers, Wi-Fi revenues and
data
|
|
10
|
roaming
revenues. The relative fair value of data revenues from
unlimited voice and data plans are included in total data
revenues.
|
|
11
|
Cell
sites are defined as the total number of sites in service at the end of
the period, excluding small low power, low gain access sites. A
site is in service when all equipment is installed and the site is
integrated into the network.
|
|
December
31,
|
December
31,
|
|||||||
|
2008
|
2007
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 306 | $ | 64 | ||||
|
Receivables
from affliates
|
113 | 1,349 | ||||||
|
Accounts
receivable, net of allowances of $291 and $277,
|
||||||||
|
respectively
|
2,809 | 2,617 | ||||||
|
Inventory
|
931 | 990 | ||||||
|
Current
portion of net deferred tax assets
|
1,148 | 994 | ||||||
|
Other
current assets
|
644 | 539 | ||||||
|
Total
current assets
|
5,951 | 6,553 | ||||||
|
Property
and equipment, net of accumulated depreciation of
|
||||||||
|
$10,830
and $9,306, respectively
|
12,600 | 11,258 | ||||||
|
Goodwill
|
12,011 | 10,701 | ||||||
|
Spectrum
licenses
|
15,254 | 14,645 | ||||||
|
Other
intangible assets, net of accumulated amortization of
|
||||||||
|
$562
and $475, respectively
|
212 | 47 | ||||||
|
Long-term
investments
|
121 | - | ||||||
|
Other
assets
|
141 | 155 | ||||||
| $ | 46,290 | $ | 43,359 | |||||
|
LIABILITIES
AND STOCKHOLDER’S EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ | 4,057 | $ | 3,790 | ||||
|
Current
payables to affiliates
|
1,557 | 1,127 | ||||||
|
Other
current liabilities
|
364 | 380 | ||||||
|
Total
current liabilities
|
5,978 | 5,297 | ||||||
|
Long-term
payables to affiliates
|
13,850 | 6,712 | ||||||
|
Deferred
tax liabilities
|
2,452 | 1,622 | ||||||
|
Other
long-term liabilities
|
1,227 | 915 | ||||||
|
Total
long-term liabilities
|
17,529 | 9,249 | ||||||
|
Minority
interest in equity of consolidated subsidiaries
|
95 | 89 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Stockholder’s
equity:
|
||||||||
|
Common
stock and additional paid -in capital
|
36,594 | 44,469 | ||||||
|
Accumulated
deficit
|
(13,906 | ) | (15,745 | ) | ||||
|
Total
stockholder’s equity
|
22,688 | 28,724 | ||||||
| $ | 46,290 | $ | 43,359 | |||||
|
Quarter
Ended December 31,
2008
|
Quarter
Ended December 31,
2007
|
Year
Ended December 31,
2008
|
Year
Ended December 31,
2007
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Contract
|
$ | 4,334 | $ | 3,939 | $ | 17,106 | $ | 15,308 | ||||||||
|
Prepaid
|
394 | 277 | 1,460 | 976 | ||||||||||||
|
Roaming
and other service
|
176 | 155 | 676 | 607 | ||||||||||||
|
Equipment
sales
|
687 | 620 | 2,262 | 2,061 | ||||||||||||
|
Other
|
131 | 77 | 381 | 336 | ||||||||||||
|
Total
revenues
|
5,722 | 5,068 | 21,885 | 19,288 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Network
|
1,286 | 1,125 | 5,007 | 4,344 | ||||||||||||
|
Cost
of equipment sales
|
1,030 | 879 | 3,524 | 3,120 | ||||||||||||
|
General
and administrative
|
941 | 836 | 3,691 | 3,200 | ||||||||||||
|
Customer
acquisition
|
897 | 901 | 3,540 | 3,274 | ||||||||||||
|
Depreciation
and amortization
|
730 | 681 | 2,753 | 2,609 | ||||||||||||
|
Total
operating expenses
|
4,884 | 4,422 | 18,515 | 16,547 | ||||||||||||
|
Operating
income
|
838 | 646 | 3,370 | 2,741 | ||||||||||||
|
Other
expense, net
|
(56 | ) | (33 | ) | (380 | ) | (346 | ) | ||||||||
|
Income
before income taxes
|
782 | 613 | 2,990 | 2,395 | ||||||||||||
|
Income
tax expense
|
(299 | ) | (230 | ) | (1,151 | ) | (821 | ) | ||||||||
|
Net
income
|
$ | 483 | $ | 383 | $ | 1,839 | $ | 1,574 | ||||||||
|
Year
Ended December 31, 2008
|
Year
Ended December 31, 2007
|
|||||||
|
Operating
activities:
|
||||||||
|
Net
income
|
$ | 1,839 | $ | 1,574 | ||||
|
Adjustments
to reconcile net income to net cash provided by
|
||||||||
|
operating
activities:
|
||||||||
|
Depreciation
and amortization
|
2,753 | 2,609 | ||||||
|
Income
tax expense
|
1,151 | 821 | ||||||
|
Bad
debt expense
|
523 | 526 | ||||||
|
Other,
net
|
139 | 165 | ||||||
|
Changes
in operating assets and liabilities:
|
||||||||
|
Accounts
receivable
|
(386 | ) | (833 | ) | ||||
|
Inventory
|
86 | (378 | ) | |||||
|
Other
current and non-current assets
|
(44 | ) | (124 | ) | ||||
|
Accounts
payable and accrued liabilities
|
(259 | ) | 528 | |||||
|
Net
cash provided by operating activities
|
5,802 | 4,888 | ||||||
|
Investing
activities:
|
||||||||
|
Purchases
of property and equipment
|
(3,603 | ) | (2,677 | ) | ||||
|
Purchases
of intangible assets
|
(202 | ) | (86 | ) | ||||
|
Short-term
affiliate loan receivable
|
(895 | ) | (1,675 | ) | ||||
|
Acquisition
of SunCom Wireless, net of cash acquired
|
(1,532 | ) | - | |||||
|
Other,
net
|
79 | 48 | ||||||
|
Net
cash used in investing activities
|
(6,153 | ) | (4,390 | ) | ||||
|
Financing
activities:
|
||||||||
|
Repayment
of debt assumed through SunCom acquisition
|
(1,011 | ) | - | |||||
|
Long-term
debt repayments to affiliates
|
(830 | ) | (515 | ) | ||||
|
Long-term
debt borrowings from affiliates
|
2,433 | - | ||||||
|
Other,
net
|
1 | 3 | ||||||
|
Net
cash provided by (used in) financing activities
|
593 | (512 | ) | |||||
|
Change
in cash and cash equivalents
|
242 | (14 | ) | |||||
|
Cash
and cash equivalents, beginning of period
|
64 | 78 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 306 | $ | 64 | ||||
|
Full
Year
2008
|
Q4 2008 | Q3 2008 | Q2 2008 | Q1 2008 |
Full
Year 2007
|
Q4 2007 | ||||||||||||||||||||||
|
OIBDA
|
$ | 6,123 | $ | 1,568 | $ | 1,531 | $ | 1,583 | $ | 1,441 | $ | 5,350 | $ | 1,327 | ||||||||||||||
|
Depreciation
and
amortization
|
(2,753 | ) | (730 | ) | (678 | ) | (667 | ) | (678 | ) | (2,609 | ) | (681 | ) | ||||||||||||||
|
Operating
income
|
$ | 3,370 | $ | 838 | $ | 853 | $ | 916 | $ | 763 | $ | 2,741 | $ | 646 | ||||||||||||||
|
Operating
income per IS
|
3370 | 838 | 853 | 916 | 763 | 2,741 | 646 | |||||||||||||||||||||
|
Full
Year
2008
|
Q4 2008 | Q3 2008 | Q2 2008 | Q1 2008 |
Full
Year
2007
|
Q4 2007 | ||||||||||||||||||||||
|
Customer
acquisition costs
|
$ | 3,540 | $ | 897 | $ | 906 | $ | 876 | $ | 861 | $ | 3,274 | $ | 901 | ||||||||||||||
|
Plus:
Subsidy loss
Equipment
sales
|
(2,262 | ) | (687 | ) | (512 | ) | (529 | ) | (534 | ) | (2,061 | ) | (620 | ) | ||||||||||||||
|
Cost
of equipment sales
|
3,524 | 1,030 | 828 | 834 | 832 | 3,120 | 879 | |||||||||||||||||||||
|
Total
subsidy loss
|
1,262 | 343 | 316 | 305 | 298 | 1,059 | 259 | |||||||||||||||||||||
|
Less:
Subsidy loss unrelated
to
customer acquisition
|
(735 | ) | (215 | ) | (178 | ) | (169 | ) | (173 | ) | (623 | ) | (157 | ) | ||||||||||||||
|
Subsidy
loss related to
customer
acquisition
|
527 | 128 | 138 | 136 | 125 | 436 | 102 | |||||||||||||||||||||
|
Cost
of acquiring customers
|
$ | 4,067 | $ | 1,025 | $ | 1,044 | $ | 1,012 | $ | 986 | $ | 3,710 | $ | 1,003 | ||||||||||||||
|
CPGA
($ / new customer added)
|
$ | 290 | $ | 270 | $ | 290 | $ | 320 | $ | 300 | $ | 300 | $ | 300 | ||||||||||||||
|
Full
Year 2008
|
Q4 2008 | Q3 2008 | Q2 2008 | Q1 2008 |
Full
Year 2007
|
Q4 2007 | ||||||||||||||||||||||
|
Network
costs
|
$ | 5,007 | $ | 1,286 | $ | 1,284 | $ | 1,271 | $ | 1,166 | $ | 4,344 | $ | 1,125 | ||||||||||||||
|
General
and administrative
|
3,691 | 941 | 957 | 906 | 887 | 3,200 | 836 | |||||||||||||||||||||
|
Total
network and general and
administrative
costs
|
8,698 | 2,227 | 2,241 | 2,177 | 2,053 | 7,544 | 1,961 | |||||||||||||||||||||
|
Plus:
Subsidy loss unrelated to
customer
acquisition
|
735 | 215 | 178 | 169 | 173 | 623 | 157 | |||||||||||||||||||||
|
Total
cost of serving customers
|
$ | 9,433 | $ | 2,442 | $ | 2,419 | $ | 2,346 | $ | 2,226 | $ | 8,167 | $ | 2,118 | ||||||||||||||
|
CCPU
($ / customer per month)
|
$ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | $ | 25 | ||||||||||||||
|
DEUTSCHE
TELEKOM AG
|
|
|
By:
|
/s/ Guido
Kerkhoff
|
|
Name:
|
Guido
Kerkhoff
|
|
Title:
|
Member of the Management Board for South Eastern Europe |