SMS <scharf.steven@geemail.com> amazed us all with the following in
news:4fHRj.248$J16.32@newssvr23.news.prodigy.net:

> AT&T disappointed analysts with their 1Q CY08 results in the wireless
> division. "Overall, I think it was largely in line, but not a great
> quarter. And wireless net adds were less than expected," stated
> Christopher King (http://tinyurl.com/3ly6qn)
>
> What's sad for AT&T is that even with the iPhone, they added only
> about half as many new retail contract customers in the last quarter
> as Verizon, even though according to one report, 40% of iPhone users
> on AT&T are new subscribers.
>
> For Q1 CY08:
>
> Verizon added 1.5 million customers, 1.3 million of them postpaid
> retail contract customers. ARPU was $51.40.
>
> AT&T added 1.3 million customers, 705000, of the postpaid retail
> contract customers. So nearly half of their net additions were
> low-profit prepaid and MVNO customers. ARPU was $50.18.
>
How do you figure them to be low-profit? MVNO customers come with no
acquisition or retention costs, far lower billing costs and no credit or
collections costs associated with them. In many cases, even the cost of
customer care is carried by the MVNO..This results in an almost pure profit
stream for this revenue..

Of course, your opinion is probably a little warped because your beloved
Verizon hasn't picked up on that yet. Better to misrepresent the truth
than admit they are missing a cash cow.