Technology

Sprint posts smaller-than-expected subscriber loss on cheaper plans

Proposed merger with T-Mobile could be derailed as US customers fear higher prices

File photo. Photograph: Reuters/Andrew Kelly

Mon Jan 27 2020 - 18:35

Sprint said on Monday it lost fewer than expected mobile phone subscribers who pay a monthly bill in the third quarter, benefiting from cheaper plans ahead of a merger with larger rival T-Mobile US.

The company said it lost 115,000 postpaid phone subscribers during the quarter ended December 31st. Analysts were expecting a net loss of 160,000 subscribers, according to research firm FactSet.

Sprint, the fourth largest US wireless carrier by subscribers, is facing a multi-state lawsuit against its $26 billion proposed merger with larger rival T-Mobile US Inc .

T-Mobile and Sprint have said the merger will not lead to higher prices for consumers and would allow it to compete effectively with dominant carriers Verizon and AT&T.

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Net loss attributable to the company fell to $120 million in the quarter from $141 million a year earlier. On a per share basis, the company reported a loss of three US cents per share, unchanged from a year earlier.

Total net operating revenue fell 6.1 per cent to $8.08 billion, missing analysts’ estimate of $8.22 billion, according to IBES data from Refinitiv. – Reuters

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