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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.

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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