T-Mobile Reports Second Quarter Numbers

There aren’t many ways for us to sugar coat the most important aspects of these second quarter numbers from T-Mobile so we’ll just come out and say it, there are some good aspects and some bad ones. Total customers declined last by 93,000 in the second quarter, compared to 77,000 net customer losses in the first quarter of this year. We have to express some surprise here considering we saw T-Mobile have their best sales s over the Fathers Day weekend. Part of this would be due to a significant climb in prepaid customer net losses of 199,000, which was up from 41,000 in the first quarter. On the bright side, T-Mobile gained 106,000 contract customers in the 2nd quarter compared to 118,000 net customer losses in the first quarter of this year

Moving along, we see that T-Mobile has 6.5 million customers using 3G capable devices, a 25% increase from the first quarter of this year. With a 3G network covering 208 million people and an HSPA+ network covering 85 million T-Mobile certainly hopes to make it with its late 3G launch by leading the charge on 4G like speeds.

The other piece of good news here is that service revenues were up, to the tune of $4.70 billion, an increase from $4.63 billion from the first quarter. Deutsche Telekom CEO, Rene Obermann gave a positive spin but we can’t imagine they aren’t exploring just what can be done to give T-Mobile a significant boost in the coming quarters.

“T-Mobile USA soundly delivered on its aggressive HSPA+ network build out and roadmap execution in the second quarter; together playing a large role in driving strong data ARPU, as well as achieving contract customer growth and improved service revenue trends.”

Outgoing T-Mobile USA CEO, Robert Dotson also gave a positive spin with as T-Mobile’s data revenues continue to grow,

“In the second quarter of 2010, customers embraced T-Mobile USA’s industry leading value which makes it simple and affordable for consumers to trade-up to next generation products and services,” said Robert Dotson, President and CEO, T-Mobile, USA.  “The number of 3G smartphones in the hands of our customers year-over-year has tripled to 6.5 million supported by a network that offers the broadest reach of 4G speeds in the U.S. as our growth continues through data revenues.”

We can’t say these numbers, at least in regards to subscriber growth aren’t a little disappointing and we can only wonder what the minds in Germany are thinking. We undoubtedly hope that a continued focus on competitive pricing combined with faster data speeds than the competition can bring T-Mobile back on track as we look toward the end of the year and the holiday season where there are plenty of opportunities to grab new customers by the truckload.

Want the full read:

T-MOBILE USA REPORTS SECOND QUARTER 2010 RESULTS

$4.70 billion service revenues in the second quarter of 2010, an increase from $4.63 billion in the first quarter of 2010, but down from $4.77 billion in the second quarter of 2009

  • Blended data ARPU of $11.60 in the second quarter of 2010, up from $10.90 in the first quarter of 2010, and $9.90 in the second quarter of 2009
  • 6.5 million customers using 3G-capable smart phones as of the second quarter of 2010, a 25% increase from the first quarter of 2010
  • T-Mobile USA’s national 3G network covers 208 million people and the HSPA+ network upgrade now covers 85 million people delivering 4G speeds (as defined in Note 11 to the Selected Data below), including service in New York, Seattle, Los Angeles and Las Vegas
  • OIBDA of $1.42 billion in the second quarter of 2010, compared to $1.39 billion in the first quarter of 2010, but lower than $1.60 billion in the second quarter of 2009
  • Total customers served declined by 93,000 in the second quarter of 2010, compared to 77,000 net customer losses in the first quarter of 2010, and 325,000 net customer additions in the second quarter of 2009

BELLEVUE, Wash., August 5, 2010 — T-Mobile USA, Inc. (“T-Mobile USA”) today reportedsecond quarter of 2010 results.  In the second quarter of 2010, T-Mobile USA reported service revenues of $4.70 billion up from $4.63 billion in the first quarter of 2010, and OIBDA of $1.42 billion compared to $1.39 billion reported in the first quarter of 2010. Total customers served declined by 93,000 in the second quarter of 2010 compared to 77,000 net customer losses in the first quarter of 2010, but with positive net traditional postpay customer additions which are included within contract customers.  Additionally,customers using 3G-capable smart phones continued to increase significantly during the quarter, driving blended data ARPU growth.

“In the second quarter of 2010, customers embraced T-Mobile USA’s industry leading value which makes it simple and affordable for consumers to trade-up to next generation products and services,” said Robert Dotson, President and CEO, T-Mobile, USA.  “The number of 3G smartphones in the hands of our customers year-over-year has tripled to 6.5 million supported by a network that offers the broadest reach of 4G speeds in the U.S. as our growth continues through data revenues.”

René Obermann, Chief Executive Officer, Deutsche Telekom, said, “T-Mobile USA soundly delivered on its aggressive HSPA+ network build out and roadmap execution in the second quarter; together playing a large role in driving strong data ARPU, as well as achieving contract customer growth and improved service revenue trends.”

Customers

  • T-Mobile USA served 33.6 million customers (as defined in Note 3 to the Selected Data, below) at the end of the second quarter of 2010, down from 33.7 million at the end of the first quarter of 2010 and up from 33.5 million at the end of the second quarter of 2009.
    • In the second quarter of 2010, total customers served declined by 93,000, compared to a net decline of 77,000 in the first quarter of 2010 and net customer additions of 325,000 in the second quarter of 2009.
    • Sequentially and year-on-year, the number of net new customer additions decreased due primarily to fewer net prepaid customer additions.
    • Contract net customer additions were 106,000 in the second quarter of 2010, compared to 118,000 net contract customer losses in the first quarter of 2010, and 56,000 net contract customer additions in the second quarter of 2009.
      • Sequentially and year-on-year, the increase in net contract customer additions was driven primarily by improvements in net traditional postpay customer additions, which were positive in the second quarter of 2010 and benefitted from a variety of incentive offers.
      • Connected device customers, included within contract customers (as defined in Note 3 to the Selected Data, below), totaled 1.5 million at June 30, 2010 and continued to grow significantly during the second quarter of 2010.
    • Prepaid net customer losses, including MVNO customers (as defined in Note 3 to the Selected Data, below), were 199,000 in the second quarter of 2010, compared to 41,000 net prepaid customer additions in the first quarter of 2010 and 268,000 net prepaid customer additions in the second quarter of 2009.
      • In the second quarter of 2010, lower MVNO net customer additions were the primary reason for the year-over-year decrease in prepaid net customer additions.  MVNO customers totaled 2.1 million at June 30, 2010.
      • Sequentially, prepaid net customer additions declined in the second quarter of 2010 due primarily to higher prepaid churn as discussed below.

Churn

  • Blended churn (as defined in Note 2 to the Selected Data, below), including both contract and prepaid customers, was 3.4% in thesecond quarter of 2010, up from 3.1% in the first quarter of 2010 and the second quarter of 2009.
  • Contract churn was 2.2% in the second quarter of 2010, in line with the first quarter of 2010 and second quarter of 2009.
  • Prepaid churn increased in the second quarter of 2010 to 7.6% from 6.8% in the first quarter of 2010 and 7.0% in the second quarter of 2009.
    • The sequential increase in prepaid churn was due primarily to competitive intensity impacting traditional prepaid and MVNO customers.

OIBDA and Net Income

  • T-Mobile USA reported OIBDA (as defined in Note 6 to the Selected Data, below) of $1.42 billion in the second quarter of 2010, up slightly from $1.39 billion in the first quarter of 2010 but down from $1.60 billion in the second quarter of 2009.
    • Sequentially, higher service revenues (discussed below) were partially offset by a higher equipment subsidy loss driven in part by a variety of incentive offers and as customers adopt more costly 3G-enabled smart phones.
    • Compared to the second quarter of 2009, OIBDA decreased due to lower service revenues from fewer branded customers and a higher equipment subsidy loss.
    • OIBDA margin (as defined in Note 7 to the Selected Data, below) was 30% in the second quarter of 2010, consistent with the first quarter of 2010 but down from 34% in the second quarter of 2009.
    • Net income in the second quarter of 2010 was $404 million, compared to $362 million in the first quarter of 2010 and $425 million in the second quarter of 2009.

Revenue

  • Service revenues (as defined in Note 1 to the Selected Data, below) were $4.70 billion in the second quarter of 2010, up slightly from $4.63 billion in the first quarter of 2010, but down 1.4% from $4.77 billion in the second quarter of 2009.
    • The sequential increase in service revenues was due primarily to data revenue growth, driven by the adoption of 3G data revenue plans and higher roaming revenues, partially offset by lower voice revenues.
    • Year-on-year, service revenues declined due primarily to fewer branded customers.  However, the -1.4% rate of decline year-on-year in the second quarter of 2010 was an improvement from -3.0% year-on-year in the first quarter of 2010.
    • Total revenues, including service, equipment, and other revenues were $5.36 billion in the second quarter of 2010, up from $5.28 billion in the first quarter of 2010 and $5.34 billion in the second quarter of 2009.
      • Compared to the first quarter of 2010, the increase in total revenues was driven primarily by higher service revenues as described above.
      • Compared to the second quarter of 2009, the increase in total revenues was due primarily to higher equipment sales as customers adopt 3G-capable smart phones, which was partially offset by lower service revenues as described above.

ARPU

  • Blended Average Revenue Per User (“ARPU” as defined in Note 1 to the Selected Data, below) was $47 in the second quarter of 2010, up from $46 in the first quarter of 2010 but down from $48 in thesecond quarter of 2009.
    • Blended ARPU increased sequentially for the first time since the second quarter of 2008 driven by contract ARPU growth.
    • Contract ARPU was $52 in the second quarter of 2010, up slightly from $51 in the first quarter of 2010, and consistent with the second quarter of 2009.
      • The sequential increase in contract ARPU was driven by data revenue growth, partially offset by lower voice revenues.
    • Prepaid ARPU was $18 in the second quarter of 2010, consistent with the first quarter of 2010 but down from $21 in the second quarter of 2009.
      • The decrease compared to the second quarter of 2009 was due primarily to proportionally fewer FlexPaySM no-contract customers and a higher proportion of lower ARPU MVNO customers.
    • Data service revenues (as defined in Notes 1 and 9 to the Selected Data, below) were $1.17 billion in the second quarter of 2010, up 18% from the second quarter of 2009.  Data service revenues in the second quarter of 2010 represented 25.0% of blended ARPU, or $11.60 per customer, up from 23.8% of blended ARPU, or $10.90 per customer in the first quarter of 2010, and 20.8% of blended ARPU, or $9.90 per customer in the second quarter of 2009.
      • 6.5 million customers were using 3G-capable smart phones (such as the T-Mobile® MyTouchTM 3G Slide, HTC HD2 and BlackBerry® BoldTM 9700) on the T-Mobile USA network at the end of the second quarter of 2010, an increase of 25% from 5.2 million customers as of the first quarter of 2010 and more than tripling from 2.1 million customers as of the second quarter of 2009.  3G-capable smart phone customers now account for 19% of total customers, up from 15% in the first quarter of 2010 and 6% in second quarter of 2009.
      • The increase in customers using 3G-capable smart phones and the continued expansion of the upgrade of the 3G network are driving Internet access revenue growth with the increasing adoption of 3G data plans.  Additionally, messaging continues to be a significant component of blended data ARPU

CPGA and CCPU

  • The average cost of acquiring a customer, Cost Per Gross Add (“CPGA” as defined in Note 5 to the Selected Data, below) was $330 in the second quarter of 2010, up from $310 in the first quarter of 2010 and $270 in the second quarter of 2009.
    • Sequentially and year-on-year, CPGA increased in the second quarter of 2010 due primarily to a higher subsidy loss as T-Mobile USA offered a variety of incentives and as customers move towards purchasing more costly 3G-capable smart phones.
    • The average cash cost of serving customers, Cash Cost Per User (“CCPU” as defined in Note 4 to the Selected Data, below), was $23 per customer per month in the second quarter of 2010, consistent with the first quarter of 2010 and second quarter of 2009.
      • Sequentially and year-on-year, CCPU was consistent as a higher handset subsidy loss from a greater number of customers upgrading to more expensive 3G-capable smart phones was offset by lower network costs.

Capital Expenditures

  • Cash capital expenditures (as defined in Note 8 to the Selected Data, below) were $682 million in the second quarter of 2010, compared to $666 million in the first quarter of 2010 and $1.08 billion in the second quarter of 2009.
    • Year-on-year the decrease in capital expenditures was due primarily to higher network expenditures in the second quarter of 2009 as a result of the aggressive build out of the national UMTS/HSPA (3G) network in 2009, which covers 208 million people as of the end of the second quarter of 2010.
    • The upgrade to high speed packet access plus (HSPA+) technology,which delivers customers 4G data speeds (as defined in Note 11 to the Selected Data, below), now covers 85 million people, in markets such as New York, Seattle, Los Angeles, Washington D.C. and Las Vegas

Stick Together Highlights

  • During the second quarter of 2010, Robert Dotson, president and chief executive officer of T-Mobile USA, announced his intent to transition to new opportunities in 2011 after 15 years of service with the company.  In order to ensure a smooth transition of leadership, Dotson has committed to stay actively engaged in the business until May 2011. His designated successor is Philipp Humm, an experienced DT executive and former CEO of T-Mobile Germany. Humm was last responsible for sales and service in Europe as chief regional officer (CRO) Europe. After a period of transition with Dotson, Humm will take over as CEO of T-Mobile USA in February 2011, while Dotson will remain on as a non-executive board member until May 2011.
  • T-Mobile now offers 4G speeds (as defined in Note 11 to the Selected Data, below) to more people than any other network in the country reaching nearly 50 major metropolitan areas across the country.  T-Mobile is on track to deliver HSPA+ speeds in 100 major metropolitan areas, covering 185 million people in the U.S. by the end of this year.  Complementing the network expansion is a wider availability of the webConnectTM Rocket USB Laptop Stick and the Dell InspironTM Mini 10.  Additionally later this summer, T-Mobile will unveil its first HSPA+ capable smart phone.
  • On June 19, 2010, T-Mobile USA celebrated Father’s Day with an unprecedented industry-first promotion that offered a free cell phone to new contract family plan customers, including customers adding a line to an existing family plan.
  • On July 29, 2010, T-Mobile USA received the highest ranking among national wireless carriers in the J.D. Power and Associates 2010 Wireless Customer Care Performance StudySM — Volume 2.  The award further reflects T-Mobile’s commitment to providing an outstanding customer experience, whether in-store, online or on the phone.

T-Mobile USA is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY). In order to provide comparability with the results of other US wireless carriers, all financial amounts are in US dollars and arebased on accounting principles generally accepted in the United States (“GAAP”).  T-Mobile USA results are included in the consolidated results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports financial results in Euros and in accordance with International Financial Reporting Standards (IFRS).

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 with 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.


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  • KnowsStuff

    Not the best report by any means but hardly worth panic mode. T-Mobile had net gain in post paid customers and they are making money. This is happening in the worst economy in a decade while they are building out their HSPA+ network. Not to mention they did this in the face of some very enticing handsets offered by two huge companies.

    Lets think about this.

    The number of customers Sprint gained last quarter-just over 100k. If you add in the pre-paid customers for Boost and Virgin they gained about 300k. On the money front they lost 760 million dollars.

    T-Mobile also gained just over 100k post paid customers. If you add in the losses on pre-paid/no contract then they have a loss of just over 90k customers. On the money front they are on the plus side by just over 400 million dollars.

    So wait. T-Mobile added quality customers, made money. Sprint added the same amount of post paid got some of the leftovers from Cricket and other pre-paid churn, lost a ton of money and the conclusion is be more like Sprint? LMFAO

    I agree it would be sweet to see more advertising. I have a sneaky suspicion At&t and Verizon have a bit more cheddar to throw around. I also agree that the strategy around phone selection has been questionable. Is their any doubt at this point that not putting Android on the HD2 was a mistake? I still say Verizon has some of the ugliest Android phones out there and their data service runs at a snails pace. I think they just have a ton of old people that carry their phones and they are used to dial up at their house.

    I’m getting 4.2 megs on my Vibrant as we speak and I’m completely happy with T-Mobile service. They have made some mistakes for sure but in general they are still the best balance of service and price out there.

    • Gilgamesh

      Well said. And 4.2 d/l speeds? Nice! I get just over 3 at work. Faster than our dsl lol.

    • Testament

      4.2 MBs. I wish I can get 1MB down without having to stand within 100 feet of a t-mobile tower.

      PS. I did a speed test on the Vibrant in the store and got the same speed as my TP2. (368~667)

  • Barry

    I agree with the ugly androids from Verizon or Motorola I should say I was just saying to my gf the other day the Droid is the ugliest phone I’ve ever seen and the Droid X and D2 appear to be just as unattractive lol

  • currator

    man some of the trolls that come on this site. first off do some research. clearwire needed backing for those who are lost it means money. to do the lte thing i read a while back tmobile was in talks with them about dev. lte but they needed backing now all the sudden they are testing it. well lets see sprint does not have the money for such a deal but d.t. does. so makes me think when the ceo of sprint said they would merge under tmobile when it came to lte. ohh tmobile already has lte networks up in other countries. ohh and i think the reason you have not seen to much of tmobile thats cuz the wait. its gonna pay of in the end i think they are doing a lot more then anyone realizes. think about it with the evos and the droids and ip4 i would just sit back too let them shine and by about the holiday season start dropping bombs hspa+ fastest network in usa. and a few good phones they will be set. the evos old news as for the droids well same thing think about it i mean the only thing that changed from droid droid2 is hardware what a joke. and the x its a moto and im not buying anymore motos i mean idt the roadmap showed any either that god will that little brick thing is coming out but its a joke too

  • JOHN DOE

    The problem with T-mobile is that they messed up with the engine that made them, i.e. the dealer channel. T-Mobile and Dotson has screwed them big time and now they are wondering what they can do to get subscribers. DO NOT SCREW YOUR PARTNERS.

  • http://Mnexsystems.com Joseph

    Wow this indeed a surprise……no good phones and loss of customers

    • Drew

      @joseph
      lol Iknow right. I’m stuck with my Behold II waiting on TMo to pick up a highend phone worth buying. Come on TMo! I’m basically the laughing stock of my friends since my phone sucks. lol, but I believe in TMo and something will come up… it HAS to!

  • Really

    I love the Tmo cheerleaders gloating about the profit Tmo made last quarter. Who friggin cares!? Why are you happy for a corporation making a profit while their phone selection and coverage are worse than the competitors? Unreal…

    • Relikk2

      I’m happy with thier service and Phones. That’s why im still with them. Whats your excuse?

    • J

      You should care if the company is making a profit. Do you think Sprint is going to expand coverage while they are already losing 100s of millions of dollars? T-Mobile being profitable means that they have the income to put back into expanding coverage and delivering new services. Sprint continues to rack up negative gains quarter after quarter. You can’t stay in business if you aren’t making money.

    • Reece

      Wouldn’t call myself a cheerleader but (a) good T-Mobile phones are in the works starting September thanks to (b) the profit monies that T-Mobile is able to take in which also means (c) HSPA+ network for an eventual HSPA+ phone to take advantage of.

      T-Mobile phones sucked ass in the beginning of ’10 but the Vibrant helps change that tide over to the kickass goodness that’ll come from HTC this fall.

  • Relikk2

    Verizon $198 Million net loss Q2 2010
    Sprint $760 Million net loss Q2 2010

    AT&T $4 Billion profit (Company As a whole, not just cell)
    Tmobile $400 million profit

  • Barry

    Relikk2 save your fingers and relax your brain some ppl on here just don’t get it no matter what the hardcore facts say. The thing that just irks me is why do you come on a site about t-mobile news and rumors

  • MW

    OK T-Mobile, I LUV ya, but got to say, how do you build out the fastest network (HSPA+) and have no phone that can support it??? Take a note from Sprint. The day they could do 4G in one location, they had a phone to support it and advertised the (^%#$@) out of it. Thus Sprint gained much good publicity. They actually have people believing that their network is the fastest!

    I would bet that hardly anyone knows that T-Mobile’s network is the fastest. By the time that T-Mobile finally gets a phone to support the HSPAx+, Verizon will probably be the fastest network thus T-Mobile will have missed the opportunity capitalize on the position that they are in, and I bet Verizon will make a big deal about it when they get their 4G going with a phone to support it.

    T-Mobile I can’t say it enough, get yourself some flagship phones (especially Android phones) and medium phones, but all must be able to exploit the fastest mobile network.

    It makes no sense to have the fastest network and no phone to support it

    BIG MISSED OPPORTUNITY T-MOBILE

  • MW

    As a T-Mobile customer and owner of the original Android phone. I have sat back and watched the higher quality Android phones go to other networks. Had it not been for the advent of the Nexus One, I would have probably left T-Mobile for a more exciting phone as the mid grade Android phones T-Mobile seems to relish serve their purpose for some people but just don’t cut it for me.

    Maybe we can do another Garmin phone?????????????????

    Give me a reason to be excited.

  • Rifleman

    I’ve was with Voice Stream long before it became T-Mobile in 2001 and therefore have considered myself a loyal customer. T-mobile’s phones are great if you want to make calls and send text messages but that’s it.

    The Garminfone typifies what T-Mobile has to offer and quite frankly it just doesn’t give me the warm fuzzies. There is a reason why T-Mobile is losing customers and if they can’t or won’t give me something to get excited about I’m going to get a divorce and take my business elsewhere.

  • Barry

    Looks more like silhouette of the new hspa+ rather than the suspect looking mthd

    HTC Desire HD Photo Leaked http://androidreviewer.com/htc-hd-photos-leaked/

  • Brodie

    @KnowsStuff ” I think they just have a ton of old people that carry their phones and they are used to dial up at their house.”…that had me cracking up,but on a real note, I agree with MW! T-mobile needs to get their phones advertised before they come out(not just one or two, but all) just like the droid was being ran into the hole with that “In a world that doesn’t, Droid does” bull-ish!

    Tmo, we all(majority of us on here) know that y’all got a lot of good phones coming out soon so why not get y’all advertising game up now!

  • Rifleman

    For all the hype about T-Mobile having an 80% chance of getting the iPhone …… it appears that Verizon is going to be getting it in January of 2011.

  • Bill

    About iPhnne and Verizon Wireless…the iPhone is GSM. The best you can say about T-Mobile is they were about even. I’ve yet to get an answer as to why they did away with MyFaves; a very, very good plan. I don’t care how many different ways they sugar coat their plans; they cost more money; period. I was expecting more phones released from the roadmap that was know late last year; they haven’t. For Christ’s sake how many variations of Android phones does one company need.

    • Rifleman
    • Relikk2

      Please explain how T-mobile plans are more money? I get two phones unlimited web and text, 1500 minutes a months (basicly unlimited for my wife and I) for $119.99 a month. This included free nights and weekeds and free tmobile to tmobile. I also get HSAP+ and an average connection of about 3.5 to 4.5 mbits per second at no extra charge. No other carrier can touch this. Sprint comes close but the small non mobile mintues kills it for us and then the extra $20 total for 4g. T-mobile is the cheapest period with a bonus for area’s that are HSPA+ which is up to 50 to 60 cities now.

  • Rome

    “Speaker for the dead” in the cat picture. Ender’s Game and SFtD are the best fiction books ever.

  • Frost

    I’ve been around since it was Omnipoint. Had decent phones and service, but all you hear now is wait to see what’s coming next. A few years ago, the rumor was Tmobile was to be the first company offering satellite coverage, never happened. Now that I went from Michigan to Arizona, coverage isn’t the greatest. When phone makers bring out new lines, ( Samsung,for example), it’s a stripped down model. So throw out fanboying and trolling and call it like it is,Tmobile has slid to 4th overall and it needs a real plan to make it a power in this game. 11 years in and hope is waning.

  • Rifleman

    I’ve only been around since VoiceStream but in those days what’s now called T-Mobile held it’s own with the competition. Who knows, perhaps the BlackBerry 9300 with it’s 2-megapixel camera can lure away customers who’ve grown tired of their iPhone 4s.

  • maysal

    Going back to KnowsStuff’s comment, I agree that T-Mobile screwed up big time by not releasing Android on the HD2, as an employee I am very dissapointed with the people making these decisions. They need to bring new players aboard, young people with fresh ideas and tech driven. We all know Windows Mobile suck, who in the heck would put it in a brand new device, especially after your company lauched a new OS to the market in this case Android with the introduction of the now extinct G1.

    • Relikk2

      You do realize that it’s not always entirely up to T-Mobile on what OS / Phone they get? Yes, ultimately they make the final decision but if they tell HTC to ” ‘eff-off’ , we don’t won’t your stupid windows phone”; HTC might just say, “hey, we make more money with the other guys so go screw yourself.” HTC probably got subsidized by Microsoft to make the HD2, and probably approached T-Mobile saying, “if you buy these phones from us will give you an exclusive at a later date”, or “ we can give you a major rebate / price cut”. My guess is they approached T-mobile because of the smaller market (which is why T-Mobile probably got the first Androids, as a trial market). These backroom deals happen all the time. Unfortunately T-mobile has a smaller customer base which give them less bargaining chips. The one benefit we get from this is great prices and great customer service.

  • Rifleman

    There was a time when Nokia was top dog and making money hand over fist. They thought they could rest on their laurels and the world would keep banging on their door. Today they are in decline …..just like T-Mobile.

    If T-Mobile can’t start delivering some exciting phones real soon their long time faithful customers are going to start looking elsewhere to better products ….. and apparently that’s just exactly what more and more of us are doing.