3G drives profits for T-Mobile USA

T-Mobile USA, which was late to the 3G game, said its 3G network drove its $425 million in profits in the second quarter.

The operator said it added 325,000 subscribers during the quarter and indicated that voice revenues fell but were offset by data revenues. T-Mobile reported $4.77 billion in service revenues, down from $4.85 billion in the second quarter 2008. Data revenues increased 23 percent from the previous year, with the T-Mobile G1 helping that boost in data revenues. Last week the operator released its second Android device, the myTouch 3G.

About 176 cities and 121 million people are covered by T-Mobile's 3G network, the company said.  

Churn, however, was a problem for T-Mobile. It increased to 2.2 percent from 1.9 percent a year ago. The company said the new myTouch and a recent distribution deal with RadioShack, now trying to rename itself The Shack, provides it with new growth opportunities.

For more:
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- see CNET News

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