Manitoba Telecom posts flat Q1 wireless growth; new network, iPhone expected to reverse trend

Citing the impending launch of its HSPA+-based “4G” network, Canadian operator Manitoba Telecom Services Inc. reported flat customer growth results for the first three months of the year. The telecom provider said its wireless customer base was at 483,722 subscribers at the end of the quarter, which was a 5.3% increase from the 459,554 customers it counted at the end of the Q1 2010.
MTS launched its 4G service on March 31, providing coverage to 97% of its potential customer base, which was an improvement compared with the 72% coverage provided by its CDMA2000 1x EV-DO-based 3G offering. With the launch of the HSPA+ services, MTS also said it began offering Apple Inc.’s iPhone 4 on April 26, which the carrier said has led to a rebound on customer growth and positioned the carrier to achieve its 2011 growth targets.
Despite the flat customer growth, MTS reported a 9.7% increase in wireless revenues to $87.6 million during the quarter, driven by a 40.5% increase in wireless data revenues. Average revenue per user during the quarter totaled $59.20 per month, a 3.5% increase compared with the first quarter of 2010. MTS’ wireless services accounted for nearly 36% of the company’s total revenues for the quarter.