Wireless carriers continued to stave off a weakening economy with second-quarter results mostly in line with analysts’ expectations. Three of the six largest operators, including Cingular Wireless, AT&T Wireless and Nextel Communications Inc., reported both customer additions and financial results showing little economic effect on the carriers, with a handful of smaller operators continuing to show strong growth.
The nation’s second-largest operator, Cingular Wireless, added more than 700,000 new customers, bringing its total customer base to 21.2 million subscribers. The carrier noted total additions were down from the first quarter’s 866,000 due to its focus on attracting higher average revenue per user customers with fewer handset subsidies and de-emphasized prepaid offerings.
The carrier reported revenues grew 13.6 percent for the quarter to $3.6 billion.
Recently spun-off operator AT&T Wireless said it added 668,000 new customers, slightly below expectations, ending the quarter with 16.4 mievious quarter’s $1.6 billion, with net loss improving from $428 million during the first quarter, or 56 cents per share, to a loss of $404 million, or 53 cents per share.
Nextel Partners Inc., which operates Nextel services in small and mid-sized markets, added 69,000 customers during the quarter, ahead of last year’s 45,600 additions. The carrier ended the second quarter with 358,900 customers. Churn remained below the industry average at 1.6 percent, with ARPU up $1 from the first quarter to $71.
Service revenue increased to $82.9 million this year, with losses from operations of $50.8 million, or 29 cents per share this year.
Qwest Communications International Inc. reported its wireless services revenues rose 51 percent from the previous year to $181 million. Customer additions totaled 94,000 subscribers, bringing the carrier’s wireless customer base to more than 1 million subscribers.
Leap Wireless International Inc. added 133,000 customers, ending the second quarter with 472,000 subscribers. Ope $31 million this year. CenturyTel said it added 11,100 customers during the quarter.
