T Mobile continues its great year with a 127% rise in new customers in the first half of 2006.
Sales are up 7.9% to £1.48 billion but the investment required to attract 748,000 new customers has cost a lot of money and the overall earnings are down 44%.
Most of the new users are contract customers with pay monthly sales growing 14 times faster than the same period last year. The success of the Flext contact is the overriding factor in these results with 771,000 users since the service started in March.
Subscriber churn is one of the major problems in mobile phone retailing and contributes a large cost to the networks. T Mobile are attempting to cut churn by targeting pay monthly customers instead of the more fickle pay as you go users.
T Mobile are also well placed in the rollout of HSDPA internet access in the UK so they should continue to see this level of growth for some time.
