US phone subscribers hang up on contracts

May 10, 2012 By PETER SVENSSON , AP Technology Writer

(AP) -- U.S. consumers have had their fill of expensive, contract-based phone plans.

Figures from T-Mobile USA on Thursday indicate that the U.S. wireless industry lost from contract-based plans for the first time in the . Contract-based plans are the most lucrative ones for phone companies, and account for the vast majority of revenue at the big phone companies.

The seven largest U.S. phone companies, representing more than 95 percent of the market, lost a combined 52,000 subscribers from contract-based plans in the January to March period.

Since nearly every adult, and many children and , already have phones, there's little room for growth anymore. But subscribers are also flowing to cheaper, no-contract plans, which showed an increase of at least 2 million.

Explore further: Say it with light: Using LEDs to move data faster

0 shares

Related Stories

More T-Mobile USA subscribers flee

Feb 25, 2011

(AP) -- Subscribers on contract-based cell phone plans hung up on T-Mobile USA in record numbers in the fourth quarter, as it continues to lose the battle against larger carriers.

IPhone sucks subscribers away from T-Mobile USA

Feb 23, 2012

(AP) -- Customers have been leaving T-Mobile USA, the country's No. 4 cellphone company, for the last two years. Now that all three of the bigger carriers have the iPhone, that stream has turned into a flood.

Report says Sprint to get iPhone in October

Aug 23, 2011

(AP) -- Sprint Nextel Corp., the country's third-largest cellphone company, will start selling the iPhone in mid-October, The Wall Street Journal said Tuesday.

AT&T sees 3Q slowdown in iPhone activations (Update)

Oct 20, 2011

(AP) -- Running one of the nation's biggest wireless networks has been a reliable way for AT&T Inc. to boost revenues, quarter after quarter, as people loaded up on phones, and then traded up to smartphones. But the easy ...

Sprint gains contract subscribers in 4Q

Feb 10, 2011

(AP) -- Sprint Nextel Corp. said Thursday it managed to post a quarterly net gain of contract subscribers for the first time since 2007, as its turnaround continues.

Recommended for you

FBI chief urges 'robust debate' on encryption

10 hours ago

FBI Director James Comey called Monday for public debate on the use of encrypted communications, saying Americans may not realize how radical groups and criminals are using the technology.

LG Display moves advanced touch tech up to notebooks

15 hours ago

LG Display has news for people who are into working with notebook PCs. They have announced lighter and slimmer LCD panels. Unleashing "Advanced In-cell Touch" (AIT) technology, LG Display said on Monday that ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.