T-Mobile USA Reports Q2

BELLEVUE, Wash. -- T-Mobile USA (NYSE:DT - News):

• 613,000 net new customers added in the quarter, of which 507,000 were new postpay customers
• Stable postpay ARPU -- $55, up from $54 in the first quarter of 2006 and unchanged compared to the second quarter of 2005
• $3.6 billion in service revenues in the second quarter of 2006, up 18% from the second quarter of 2005
• $1.2 billion in Operating Income Before Depreciation and Amortization (OIBDA) in the quarter, a 12% increase over the second quarter of 2005
• T-Mobile USA ranked highest, in a tie, in the semi-annual J.D. Power and Associates Wireless Customer Care Performance Study and ranked top in VocaLabs satisfaction study on the quality of customer service
• Continued investment in network quality -- over 960 new cell sites on air during the quarter

In the second quarter of 2006 T-Mobile USA added 613,000 net new customers, down from 972,000 in the second quarter of 2005, and the 1.04 million net customers added in the first quarter of 2006. Postpay customers made up 83% of the second quarter customer growth, up from 70% in the first quarter of 2006, and comprised 84% of T-Mobile USA's total customer base at June 30, 2006.

"In the second quarter, we followed through on a long-term planned shift in our business aimed at investing in longer relationships with customers," said Robert Dotson, President and Chief Executive Officer, T-Mobile USA. "One of the major changes executed was a move to 2-year service agreements. While this change resulted in lower net add growth in April during the transition, by June, we finished with one of our best months of top-line sales since the holidays. Today, we are now well positioned in our drive to reduce customer churn to even lower levels while ensuring our customers continue to Get More from their T-Mobile service. Also encouraging during the quarter was the continued strong growth in our sales of converged devices. We have now surpassed the milestone of 800,000 BlackBerry users, with an increase of 51,000 in the second quarter of 2006, equivalent to 10% of the net growth in postpay customers during the quarter."

Rene Obermann, CEO of T-Mobile International and member of the Board of Management of Deutsche Telekom remarked: "T-Mobile USA has delivered quality growth for the business quarter after quarter, year after year. We remain very optimistic about the future growth opportunities for T-Mobile in the U.S. market. We are also encouraged by the U.S. team's continued success in delivering consistently strong financial metrics."

T-Mobile USA