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T-Mobile Begins 3G Roll Out, Adds Nearly 1 Million Subscribers

Earlier this week, T-Mobile said it plans to deploy the new high speed network across 20 to 25 of the major U.S. cities it currently serves.

T-Mobile USA continued its recent gains in subscribers, which translated into increases in revenue and net income as the nation's fourth largest mobile phone service provider reported its first quarter results Thursday.

The company, a unit of Deutsche Telekom, said it added 981,000 net new customers. Service revenues were $4.57 billion -- up from $3.99 billion in the like quarter in 2007; net income was $462 million in the quarter versus $315 million in the previous year.

T-Mobile USA announced the results as the firm began its commercial 3G rollout in New York City. The new nationwide network is based on UMTS/HSDPA network technology, which in turn is based on T-Mobile's $4 billion acquisition of AWS spectrum in 2006.

Earlier this week, T-Mobile said it plans to deploy the new high speed network across 20 to 25 of the major U.S. cities it currently serves. T-Mobile has been hampered by its reliance on the relatively slow EDGE infrastructure and the AWS spectrum will catapult it into the vanguard of 3G offerings.

T-Mobile USA's parent company, Deutsche Telekom, also announced its first quarter financials Thursday. The German firm, which generates most of its revenue beyond Germany's borders, said earnings were about $7.28 billion on sales of about $23 billion.

"Over the first three months of this year we laid strong foundations for the rest of the year," said DT chief executive Rene Obermann, in a statement. "T-Mobile USA continues to be a key growth and earnings driver and a centerpiece of our consumer business."

T-Mobile USA said that its recent acquisition of SunCom had added 1.1 million customers to its subscriber base, bring T-Mobile USA's total subscriber base to 30.8 million customers.

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