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updated: 8/9/2012 10:40 AM

T-Mobile loses subscribers, smartphones flat

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Associated Press

NEW YORK -- The long slide of T-Mobile USA continued in the latest quarter, as the country's No. 4 cellphone company lost subscribers and struggled to sign people up for smartphones.

The company, a subsidiary of Germany's Deutsche Telekom AG, says it lost a net 205,000 subscribers in the second quarter. Among phone subscribers under contract, it lost 557,000 subscribers.

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Revenue from monthly fees on contract service, which are the bread and butter of large wireless carriers, fell 9 percent from a year ago.

While other big carriers are relying on boosting smartphone use to raise monthly fees, the number of smartphone users at T-Mobile USA was flat from the first quarter at 11.6 million.

Last year, T-Mobile agreed to be bought by AT&T, but the deal was blocked by U.S. regulators.

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