T-Mobile, which is the fourth largest wireless company in the United States, has increased its customer base for the first time in a year. It also reported profits that exceeded estimates. This happened at the same time its German owner tries to complete the proposed merger with AT&T.
Its third quarter adjusted earnings before taxes, interest, depreciation and amortization is $1.4 billion. It is 17 percent more than estimates made by analysts. Losses of contract subscribers slowed down and gains for lower-priced plans gave an increase of 126,000 subscribers from the previous quarter.
AT&T and Deutsche Telekom AG are trying to overcome a lawsuit with regards to the $39 billion acquisition of T-Mobile. The US Justice Department opposes the buyout because it said it would cut competition.
T-Mobile’s strong showing in the third quarter could give the impression that the carrier is still a strong competitor to AT&T, Verizon Wireless and Sprint Nextel. The arrival of Apple’s iPhone 4S at the three largest carriers last October could make a huge difference at T-Mobile’s performance at the current quarter.
According to analysts, T-Mobile’s third quarter showing should not change DOJ’s stance of the merger. The company is still growing but they should not jump to conclusions. The fourth quarter would challenging for T-Mobile because it is the only major carrier without access to Apple’s iPhone 4S.
