United States.

At December 31, 2010, the United States operating segment (T-Mobile USA) had 33.7 million customers, a net decrease in customers of 56,000 for 2010 compared to 1.0 million net customer additions in 2009. Net customers decreased year-on-year, with growth in wholesale customers (MVNO and connected devices) being more than offset by losses in branded customers (total customers excluding MVNO and connected devices). In 2010, T-Mobile USA lost 390,000 net contract customers compared to 42,000 net contract customers lost in 2009. This year-onyear development in net contract customer losses was due primarily to a decline in FlexPay contract gross additions, which was partially offset by strong connected device growth. Connected device customers totaled 1.9 million at December 31, 2010. Net prepaid customers increased by 334,000 in 2010, compared to 1.1 million net prepaid customers added in 2009. The change in prepaid customer additions in 2010 was due primarily to higher deactivations from MVNO and traditional prepaid customers. At December 31, 2010, T-Mobile USA had 2.8 million MVNO customers.

T-Mobile USA’s blended churn increased to 3.4 percent per month in 2010 from 3.2 percent per month in 2009. During the year, blended churn increased due primarily to higher prepaid churn from MVNO customers. Contract churn remained high as intense competition continued to impact churn.