NEW YORK-Despite substantial increases in subscribers and revenues last quarter, VoiceStream Wireless Corp. experienced growing losses it attributed to rapid growth and expenses related to acquisitions.
VoiceStream, headquartered in Bellevue, Wash., posted a loss of $661.3 million, or $3.02 per share, on revenues of $562.2 million. A year earlier, the carrier reported a third-quarter loss of $93 million, or 97 cents per share, and revenues of $134.9 million.
The GSM operator closed the quarter with 3.1 million customers, of which 748,000 are prepaid. Net additions totaled 501,200.
The company said its operating results reflect the effects of its acquisitions of Aerial Communications and Omnipoint Corp.
Operating expenses rose dramatically, to $1.07 billion, up from $196.7 million during the year-ago quarter. Among other significant expenditures last quarter, Voice-Stream has expanded its network coverage and capacity and undertaken a transition to a new billing system.
Last quarter, Deutsche Telekom AG made a $5 billion investment in VoiceStream, which the German carrier hopes to buy for $30 billion. The deal is subject to approvals from the Federal Communications Commission and a federal task force concerned with national security.
Also last quarter, VoiceStream agreed to buy out stakes that Powertel Inc. and Cook Inlet Regional Corp. own in joint ventures with it.
