CPGA and CCPU
The average cost of acquiring a customer, Cost Per Gross Add (“CPGA” as defined in note 3 to the Selected Data, below) was $300 in the second quarter of 2007, down from $310 in the first quarter of 2007 and $320 in the second quarter of 2006.
The lower CPGA compared to the first quarter of 2007 is due to lower costs of acquisition, due primarily to a reduced subsidy
The average cash cost of serving customers, Cash Cost Per User (“CCPU” as defined in note 2 to the Selected Data, below), was $25 per customer per month in the second quarter of 2007, in line with the first quarter of 2007 and the second quarter of 2006.
CCPU was consistent compared to the first quarter of 2007 and the second quarter of 2006 due to higher network costs being offset by lower subsidy losses.
Ongoing operational capital expenditures (purchases of property and equipment) were $546 million in the second quarter of 2007, compared with $622 million in the first quarter of 2007 and $593 million in the second quarter of 2006.
The reduction in cash capital expenditures compared to the first quarter of 2007 was due to higher incurred capital spend being more than offset by cash payment timing differences.
T-Mobile USA continued its commitment to invest in network coverage and quality in the second quarter of 2007, adding almost 600 new cell sites, bringing the total number of cell sites at the end of the quarter to almost 36,400.
For the sixth consecutive reporting period, according to the J.D. Power and Associates 2007 Wireless Customer Care Performance
Study(SM) released in July 2007, T-Mobile not only earned the highest ranking once again, but its overall customer care score was significantly higher than that of any other wireless carrier.
Also, earlier in the second quarter of 2007, J.D. Power and Associates announced that T-Mobile ranked highest in Overall Customer Satisfaction with Wireless Retail Service for the fifth reporting period in a row. T-Mobile has now received the highest ranking in every J.D. Power wireless retail service study over the past three years, tying in 2005.