OKLAHOMA CITY, April 15, 2003 (PRIMEZONE)-- Dobson Communications Corporation (Nasdaq:DCEL) reported today that net subscriber additions for the first quarter ended March 31, 2003 were approximately 10,300, compared with approximately 12,500 net subscribers for the same period last year. These totals do not include net subscriber additions for American Cellular Corporation, which is jointly owned by Dobson and AT&T Wireless (NYSE:AWE). Dobson has also excluded the results from its Santa Cruz (California) Metropolitan Service Area and California Rural Service Area 4, which the Company plans to classify as discontinued operations as a result of its pending property swap with AT&T Wireless.
Dobson's gross subscriber additions (postpaid) were approximately 38,700 for the first quarter, compared with 53,400 gross subscriber additions for the same period last year. This lower level of gross subscriber additions was the primary contributor to the lower level of net subscriber additions, according to the Company. Postpaid customer churn was 1.6 percent for the first quarter of 2003, compared with churn of 2.2 percent for the same period last year.
Continued weakness in consumer demand impacted sales results for the first quarter, the Company said. It expects stronger sales results if consumer demand and the overall U.S. economy strengthen in the remainder of 2003. The Company attributed the low level of first quarter churn to the quality of its network and to its continued focus on customer service initiatives.
Local and preferred calling plans continued to account for approximately two-thirds of Dobson's gross subscriber additions and an even greater majority of sales at American Cellular.
American Cellular's total net subscriber additions were approximately 1,700 for the first quarter ended March 31, 2003, compared with approximately 10,100 for the same period last year. As with Dobson, American Cellular related its drop in net additions in the first quarter to a lower level of gross subscriber additions.
American's postpaid customer churn was just under 2.0 percent for the first quarter of 2003, compared with 2.0 percent for the same period last year. Gross subscriber additions (postpaid) were approximately 38,500 for the first quarter, compared with 46,800 gross subscriber additions for the same period last year.
Both postpaid and prepaid subscribers are included in net subscriber additions. Gross subscriber additions and churn are reported on a postpaid basis only.
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns or manages wireless operations in 17 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.