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German telecommunications giant Deutsche Telekom said it expects customer churn from its T-Mobile USA Inc. operations to increase during the current third quarter due to expiring one-year contracts from its launch in California and Nevada last summer.
A DT spokesman said the company expects T-Mobile USA’s postpaid customer churn to rise from 2.3 percent during the second quarter of this year to between 2.7 percent and 2.8 percent for the third quarter.
Analysts were predicting a smaller increase, although they noted T-Mobile USA could see increased competition from network partner Cingular Wireless L.L.C.’s recently launched bundled offerings with parent companies SBC Communications Inc. and BellSouth Corp. in California.
